Massachusetts: State tech tax repealed

(AP) — Gov. Deval Patrick has signed a bill repealing a less than two-month-old tax on computer and software services.

The governor’s press office announced the signing in a one-sentence release Friday.

The House and Senate voted this week to repeal the 6.25 percent sales tax, which went into effect July 31. The tax had been widely criticized by the state’s technology sector.

Patrick has said he supports repeal of the tax but expressed concern about the loss of revenue in the state budget. The tax was estimated to generate $161 million in the current fiscal year.

Legislative leaders say they believe the loss can be offset by unanticipated gains in overall tax collections.

Patrick would have had little chance of sustaining a veto, since only one state legislator voted against repeal.

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