The Capitol Account August 2014 | Page 4

Transportation Financing and Defeating the “Tech Tax”: The legislature enacted in October of 2103 a $500 million transportation financing package that included several tax changes such as: • provisions to implement market-based sourcing apportionment rules (see more under regulatory news); • the so-called “tech tax” to extend the state sales tax to computer services. The Society alerted legislators to the negative consequences of the tech tax and worked successfully with a broad coalition of business groups to repeal the provision; and Legislator Spotlight: Senator Benjamin Downing (D-Pittsfield): Senator Downing joined MSCPA members for Politics at the Pub, held on June 4 at Scholars Boston Bistro (see photos on page 4). Senator Downing discussed the latest developments on Beacon Hill and the 2014 statewide elections. He also discussed the important role advocacy groups, like the MSCPA, has in the legislative process and encouraged members to take an active role in the Society’s advocacy efforts. Senator Downing is in his seventh year on Beacon Hill, representing the 52 communities that make up the Berkshire, Hampshire, Franklin and Hampden Districts. He currently serves as Senate Chair of the Joint Committee on Telecommunications, Utilities and Energy and Chair of the Senate Committee on Bill in the Third Reading, making him a leader on key policy decisions. He is also an active member of the powerful Joint Committee on Ways and Means and is the former Senate Chairman of the Joint Committee on Revenue. Learn More STAY TUNED • the creation of the Tax Fairness Commission. Although the group did not vote to approve the measure, extending the sales tax to services was discussed and included in the final report. More Info Gov. Patrick and State Legislators Clash on FY14 Budget: Governor Patrick’s proposal for an expansive $1.9 billion tax package was dismissed by the legislature in favor of a smaller revenue bill (outlined above) aimed at improving the Commonwealth’s transportation infrastructure. The FY14 budget did, however, include measures to: • bring Massachusetts into further compliance with the Affordable Care Act (ACA) by expanding coverage to adults; • eliminate the $295 per employee “fair share” assessment that Massachusetts employers had been paying under state health reform since 2006 and the requirement to submit Health Insurance Responsibility Disclosure (HIRD) forms; and • delay the FAS 109 deduction, the tax break offered to offset the burden of combined reporting. More Info Take charge of your career! Stay connected and involved with the MSCPA. Participating in MSCPA committees and programs is a great way to network, give back and learn with other CPAs in Massachusetts. More Info 3