Cape Cod 5

CCTC Statement on Proposed Sales Tax on Computer and Data Processing Services

Below has been sent to our Cape & Islands delegation and is the official stance on the proposed sales tax on computer and data processing services. If you would like to add your voice to this issue, please email or call members of the Cape and Islands delegation below.

May 6, 2013

Senate President Therese Murray
Senator Daniel A. Wolf
Representative Susan Williams Gifford
Representative Sarah P. Peake
Representative Cleon H. Turner
Representative Randy Hunt
Representative David T. Vieira
Representative Brian Mannal

To the Cape and Islands Legislative Delegation:

I am writing to the Cape and Islands legislative delegation to express the opposition of the Cape Cod Technology Council to the proposed sales tax on computer and data processing services. As you may know, the Cape Cod Technology Council is a professional business organization that facilitates technology entrepreneurship, promotes technology education for business, encourages technology curriculum at the secondary and higher education levels, and advocates digital inclusion for citizens in our region. Since its inception in 1996, the Cape Cod Technology Council has devoted considerable efforts to promoting Cape Cod a place where technology and technology-dependent businesses can flourish.  The most recent manifestation of these efforts is the Council’s participation in the Smarter Cape Partnership.

Imposition of the proposed sales tax on computer and data processing services would undermine these longstanding efforts. As a starting point, imposition of the proposed tax will have an immediate and adverse impact on Cape and Islands businesses that provide these services, many of which have slim profit margins. It should be remembered that providers of computer and data processing services often pay professional salaries to employees. At a time when job creations is essential, imposition of the proposed tax may well cause affected businesses to forgo hiring new employees. Further, imposition of the proposed tax will place local providers of computer and data processing services at a competitive disadvantage with providers of similar services in states that do not impose comparable taxes.

In short, imposition of the proposed sales tax would not only compromise long-standing economic development efforts, but could also result in a reduction of state tax revenue, thereby defeating the purpose of the proposed tax.

The Cape Cod Technology Council urges all of the members of the Cape and Islands legislative delegation to reconsider the imposition of this counter- productive tax.

Very truly yours,

Paula J. Hersey, Chair
Cape Cod Technology Council, Inc.

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