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Mass. Computer Tax May Affect NH Businesses

Donkey Hotey/Flickr

A Massachusetts sales tax applied to computer software design services may affect some New Hampshire businesses with a presence in the state.

The tax took effect July 31. The 6.25 percent sales tax in Massachusetts now applies to "certain services relating to computer system design and to modification, integration, enhancement, installation, or configuration of standardized or pre-written software."

New Hampshire's Business and Industry Association says the tax may inadvertently capture New Hampshire businesses with a presence in Massachusetts.

Businesses with a physical presence in Massachusetts providing services covered by the tax to Massachusetts customers may be subject to what's become known as the "tech tax."

Opponents of the tax are pushing a 2014 ballot question that would repeal it. Supporters say they expect it to generate $161 million in new revenue.

Copyright 2013 Associated Press. All Rights Reserved.