Massachusetts House members have voted to repeal a tax on certain technology services that had generated considerable concern among business owners.
State Republican lawmakers have been campaigning against the 6.25% tax on custom software and network design services since earlier this year.
The tax was approved as part of Governor Patrick’s budget, which sought to raise millions for state transportation. However, the tax came under fire for its vague language and potential impact on an industry that Massachusetts has emerged as a national leader in.
With the House of Representatives having approved the repeal, the measure now moves on for consideration in the State Senate.
“The repeal of the tax on the technology industry is the direct result of the hard-work, dedication and resilience of Beacon Hill Republicans, as well as our partnership with industry professionals,” said Jones in a statement.