Budget Amendment ID: FY2027-S4-831

OTH 831

Exempting Software as a Service (SaaS) Products From Sales Taxes

Mr. Fattman moved that the proposed new text be amended by inserting after section X the following section:-

“SECTION X. Section 1 of chapter 64H of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by striking out the following in lines 331 through 336:-

'A transfer of standardized computer software, including but not limited to electronic, telephonic or similar transfer, shall also be considered a transfer of tangible personal property. The commissioner may, by regulation, provide rules for apportioning tax in those instances in which software is transferred for use in more than one state.'

SECTION X. Section 6 of chapter 64H of the General Laws, as so appearing, is hereby amended by inserting the following new subsection:-

'(yy) Sales of a transfer of standardized computer software, including but not limited to electronic, telephonic or similar transfer that is downloaded, installed, or accessed online.'

SECTION X. This act shall apply to tax years beginning on or after January 1, 2027.”