By William Laforme and John Castelluccio
Massachusetts House members have voted to repeal a new tax on certain technology services that has generated considerable concern among business owners and interests in the technology industry.
A strong outcry from the private sector led to an effort to place a ballot question before voters next year to repeal the tax while simultaneously state lawmakers on both sides of the aisle have mainly aligned themselves against the tax as well, including Gov. Deval Patrick.
The tax went into effect in July and placed a 6.25 percent sales tax on custom software and network design services.
The tax was approved as part of 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.
Both of Peabody's representatives, 13th Essex District Democrat Ted Speliotis and 12th Essex District Republican Leah Cole, voted in favor of the repeal Wednesday.
The only House member to vote against the measure was Angelo Scaccia, a Democrat from Readville.