Massachusetts May Try To Tax the Cloud

CowboyRobot writes "A proposed tax in Massachusetts may affect software services and Web design and hosting. If approved, the state estimates the tax may bring in a quarter billion dollars in 2014 by expanding its tax on 'canned software' to include some elements of cloud computing. The tax would cover custom-designed software and services based in the cloud. "Custom" software includes the design of Web sites, so the cost to local businesses of a new Web site would increase by 4.5% on contracts to design the site, write Java, PHP or other custom code. The cost of site hosting and bandwidth would also be taxed."

Re:Harmonising the tax standard ...

[Attila Dimedici]

An important point, the U.S. does not have sales tax, many of the states within the U.S. have sales tax. However, not all U.S. states have sales tax.