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Taxpayer group moves to rein in software tax

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The Massachusetts Taxpayers Foundation plans to propose to state legislators next week an amendment to limit a broad new tax on computer design and software services.

The amendment more narrowly defines a proposed tax on so-called computer system design services that is part of a bill the Legislature passed last week to raise $500 million for transportation improvements.

Governor Deval Patrick rejected the bill because it would not generate the $800 million he said is needed. He sent it back to Beacon Hill with an amendment to increase the gas tax. Lawmakers are expected to vote on it next week.

“There’s now an opportunity to get the software thing fixed,” said Andrew Bagley, director of research at the Massachusetts Taxpayers Foundation.

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