Business

Bay State bit tax could hit hacks

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Technology executives and trade groups are alarmed by potential new taxes on computer services as part of the transportation finance bill Massachusetts legislators passed Wednesday night, saying the legislation is too broadly written and will impose unfair levies on many different aspects of a key sector of the economy.

The tax is part of a bill the Legislature wrote to finance some $500 million improvements to the state’s transportation infrastructure.

It would extend the 6.25 percent sales tax to so-called computer systems design services, which critics say is so vaguely defined that it could be applied to almost any business that relies on third-party software vendors, and could hit some of the state’s biggest employers and promising start-ups alike.

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