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Business Leaders Call For Repeal Of 'Broad' Tech Tax25:00
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Extending the sales tax to computer services is under heated debate. (AP/Eric Charbonneau via Invision for Showtime)
Extending the sales tax to computer services is under heated debate. (AP/Eric Charbonneau via Invision for Showtime)

The Massachusetts business community is in an uproar over a new tax that went into effect this month.

The transportation financing bill passed late July — over a veto by Gov. Deval Patrick — and extended the state sales tax to "computer services." Supporters wanted to bring the sales tax up to code to include products delivered online instead of on a physical item such as a CD.

Critics said the new tax is too far-reaching, claiming that adding the sales tax to cloud services and specialized business software services such as vendors creating a website for a company.

Guests

Callum Borchers, business reporter for the Boston Globe

Andy Singleton, president of Needham-based software company Assembla

Sen. Michael Rodrigues, chair of the joint Committee on Revenue

More

Massachusetts Taxpayers Foundation: Computer Tax Strikes at the Heart of the Massachusetts Economy

Center on Budget and Policy Priorities: States Should Embrace 21st Century Economy by Extending Sales Taxes to Digital Goods and Services

This segment aired on August 14, 2013.

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