The Tech Tax has been the talk south of the New Hampshire border for the past two months and although it appears that Massachusetts law makers are working on a repeal of the tax, Granite State businesses may want to keep an ear to the ground about another looming tax that could have an impact.
Our friends at the New Hampshire High Technology Council takes it from here …
New tax legislation adopted by Massachusetts this past summer will impact many technology and services companies in New Hampshire and across the country. While a sales and use tax to computer design and software modification services, dubbed the ‘tech tax,’ was repealed in late September, another, less noticed, law changing how the income tax applies to service businesses will have far reaching impacts on New Hampshire companies.
Kathryn Michaelis and Chris Way of the NH Division of Economic Development talked about the tech tax on WTPL last month.
The New Hampshire High Tech Council is sponsoring a special breakfast seminar this Wednesday to focus on the new income tax law. The event is co-sponsored by the law firm Rath, Young and Pignatelli, P.C., and the presentation will be led by tax attorneys Bill Ardinger, Chris Sullivan and Kathy Michaelis.
This educational seminar will run from 8 until 9:15 am in the Pandora Building at the University of New Hampshire’s Manchester campus. It is free for Council members and $10 for non-members. Individuals can register at nhhtc.org.
“We are relieved that the ‘tech tax’ on services being provided in Massachusetts has been repealed. However, the second tax is more onerous as it could impact any New Hampshire tech-related business providing services across the border directly or virtually,” said Matt Cookson, executive director of the Council.
According to an analysis prepared by Rath, Young and Pignatelli, the new income tax change, known as “market based sourcing,” will affect thousands of New Hampshire businesses providing services to Massachusetts customers. Potentially impacted businesses include financial services, accounting, architectural and law firms, software and technology firms, construction and engineering firms, and other consulting or service-based industries.
The income tax change takes effect Jan. 1. The Massachusetts Department of Revenue is drafting rules in the next few months regarding how the new law will be implemented and enforced.
Lorna Colquhoun
Communications Director
NH Division of Economic Development
Tags: New Hampshire Department of Resources & Economic Development, New Hampshire Division of Economic Development, NH High Tech Council, Rath Young Pignatelli, tax free NH, tech tax