The proposed bill, titled "An Act exempting Software as a Service (SaaS) products from sales taxes," seeks to amend the Massachusetts General Laws regarding the taxation of software. Specifically, it aims to remove the classification of standardized computer software as tangible personal property, which is currently subject to sales tax. This is achieved by deleting the relevant language in Section 1 of chapter 64H that defines the transfer of standardized computer software as a transfer of tangible personal property.

Additionally, the bill introduces a new subsection in Section 6 of chapter 64H that explicitly exempts sales of standardized computer software that is downloaded, installed, or accessed online from sales tax. This change is intended to clarify the tax status of SaaS products, thereby promoting their use and accessibility in the Commonwealth. The bill is set to take effect immediately upon its passage.

Statutes affected:
Bill Text: 64H-1, 64H-6