, Salem, MA

Local News

September 13, 2013

Peabody council votes to urge tax repeal

PEABODY — The City Council is asking Peabody’s state delegation on Beacon Hill to repeal both the new computer tax and the measure that provides for gasoline taxes to rise with the rate of inflation.

The motion, offered last night by Ward 6 Councilor Barry Sinewitz passed 9-0, with at-large Councilor Jim Liacos voting present. Liacos explained that he didn’t feel he was sufficiently familiar with both taxes to vote.

“I did recently talk to one representative from outside of our district,” Sinewitz told his colleagues regarding the new tax, “and he agreed they made a mistake and it should be repealed.”

The Legislature has already expressed an intention to repeal the computer tax, which has caused confusion. High-tech companies have reacted hotly, some complaining that no one can say just what is being taxed. Others believe the tax endangers one of the state’s vital industries.

‘‘It is now evident that the impact of the tax is broader than any of us ever anticipated or intended,’’ said Senate President Therese Murray recently, according to the Associated Press.

The law was passed earlier this year as part of an effort to provide Gov. Deval Patrick with increased funds for transportation and local aid. Patrick had requested $800 million but the taxes were advertised as raising $500 million.

They included a vaguely worded 6.25 percent tax on computer and software services, as well as a 3 cent per gallon increase on gasoline with that amount slated to rise with the cost of living.

Peabody’s Republican state Rep. Leah Cole voted against the tax; state Rep. Ted Speliotis, D-Danvers, and state Sen. Joan Lovely, D-Salem, who both represent Peabody, voted in favor of the tax.

“On the technology tax,” said at-large Councilor Dave Gravel, whose business involves computer services, “I completely agree with what Councilor Sinewitz is requesting.”

Text Only | Photo Reprints
Local News

AP Video
Raw: Magnitude-7.2 Earthquake Shakes Mexico City Ceremony at MIT Remembers One of Boston's Finest Raw: Students Hurt in Colo. School Bus Crash Raw: Church Tries for Record With Chalk Jesus Raw: Faithful Celebrate Good Friday Worldwide Deadly Avalanche Sweeps Slopes of Mount Everest Police Arrest Suspect in Highway Shootings Drought Concerns May Hurt Lake Tourism Vermont Goat Meat Gives Refugees Taste of Home Calif. Investigators Re-construct Fatal Bus Cras Mayor Rob Ford Launches Re-election Campaign Appellate Court Hears Okla. Gay Marriage Case Author Gabriel Garcia Marquez Dead at 87 Chelsea Clinton Is Pregnant Flamingo Frenzy Ahead of Zoo Construction Crew Criticized Over Handling of Ferry Disaster Agreement Reached to Calm Ukraine Tensions Boston Bombing Survivors One Year Later
Comments Tracker