Just two days before it was slated to take effect, the Massachusetts Department of Revenue revoked the highly controversial Directive 17-1 that sought to extend sales tax collection and remittance responsibilities on internet vendors that licensed software to Massachusetts customers, used cookies or contracted with marketplace providers located in the state. While Directive 17.2 revoking the earlier guidance is short on the details, it comes on the heels of a legal proceeding where businesses were seeking to temporarily block the measure.
However, this isn’t the end of Massachusetts efforts to collect tax from out-of-state vendors, Directive 17-2 indicates that the state is pursuing a similar measures via regulation (which requires notice and public comment) rather than through the use of a Directive.
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