Massachusetts High Court OKs Sales Tax Apportionment for Software

Richard Jones and Caroline Kupiec were quoted in the article, "Massachusetts High Court OKs Sales Tax Apportionment for Software," published in Tax Notes on May 24, 2021. 

The article discusses the Massachusetts Supreme Judicial Court ruling that three software companies can use the state’s abatement process to apportion sales tax for software sold to a customer, a decision which affirmed that of the Appellate Tax Board. According to Rich, who represented the taxpayers in the case at hand, software purchasers in Massachusetts should consider whether they also have refund opportunities through the abatement process. Caroline, who also represented the taxpayers, added that the decision is important because it also addresses the extent of the tax commissioner’s authority to determine and implement tax policy through regulations, with the court concluding that the commissioner in this case had overstepped his authority.