Massachusetts Software Maintenance and Support Agreement

State:
Multi-State
Control #:
US-13001BG
Format:
Word; 
Rich Text
Instant download

Description

This form is a detailed Software and Equipment Maintenance Services Agreement for use in the computer, internet and/or software industries.

Massachusetts Software Maintenance and Support Agreement is a contractual agreement between a software vendor or developer and a customer located in the state of Massachusetts. This agreement outlines the terms and conditions under which the software vendor will provide ongoing maintenance and support for the software product purchased by the customer. The purpose of the Massachusetts Software Maintenance and Support Agreement is to ensure that the software remains functional, secure, and up-to-date, ensuring that the customer can continue to use the software effectively. The agreement typically covers a specified period, which can range from one year to multiple years, depending on the agreement terms. The content of the Massachusetts Software Maintenance and Support Agreement typically includes the following important elements: 1. Scope of Services: This section defines the specific maintenance and support services that the software vendor will provide. This can include bug fixes, patches, upgrades, and technical support. 2. Response Time: The agreement specifies the expected response time within which the software vendor should respond to and resolve any issues reported by the customer. 3. Software Updates: It outlines how updates and upgrades to the software will be provided, including whether they will be automatic or require manual installation. 4. Bug Fixes: The agreement should explicitly state how and when the software vendor will address any identified bugs or issues in the software. 5. Service Level Agreement (SLA): This is a crucial component that defines the level of service the software vendor will provide, including availability, uptime, and performance metrics. 6. Customer Obligations: The agreement may outline specific obligations the customer must fulfill, such as providing access to the software, cooperating in issue resolution, and timely payment of maintenance fees. 7. Intellectual Property: It clarifies the ownership of the software and any modifications made during the maintenance and support process. 8. Termination: This section outlines the conditions under which either party can terminate the agreement. It may also specify whether termination results in a refund or continuation of services for a limited period. Different types or variations of the Massachusetts Software Maintenance and Support Agreement may exist depending on the specific software industry or the software vendor. For example, there may be different agreements for enterprise software, cloud-based software, or open-source software. These agreements may have varying terms, pricing structures, and service offerings, tailored to the unique characteristics of the software being supported.

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FAQ

In addition, sales of prewritten software, computer hardware, and hardware and software maintenance contracts involving software updates, upgrades and fixes are generally subject to the Massachusetts sales and use tax under the rules provided in the regulation.

Sales of digital products are exempt from the sales tax in Massachusetts.

Sales of prewritten computer software, regardless of the method of delivery, are subject to the Massachusetts sales tax. SaaS, cloud computing and electronically downloaded software are all taxable in the state because the object of the transaction is acquiring the right to use the software.

While software is not physical or tangible in the traditional sense, accounting rules allow businesses to capitalize software as if it were a tangible asset. Software that is purchased by a firm that meets certain criteria can be treated as if it were property, plant, & equipment (PP&E).

The majority of states which have addressed the issue and have concluded that software (at least unbundled software) is not tangible personal property for ad valorem tax purposes and therefore is generally not taxable.

Sales tax applies to the retail sales of hardware, miscellaneous supplies, repair parts, and pre-written and sub-licensed software. Sales tax also applies if the client is required to purchase a maintenance contract or the hotline support service.

First, the statute defines computer software as personal property only to the extent of the value of the uninstalled storage medium on or in which it is stored or transmitted. Next, the statute goes on to define all computer software as an intangible.

Unlike Connecticut and New York, business and professional services in Massachusetts are presumed taxable unless specifically exempt by state statute. In general, most business and professional services are exempt from the state's sales tax (MASS.

Tangible personal property exists physically (i.e., you can touch it) and can be used or consumed. Clothing, vehicles, jewelry, and business equipment are examples of tangible personal property.

The SSUTA defines canned software, whether delivered on a tangible format or electronically, as tangible personal property. Member states are allowed, but are not required, to exempt electronically delivered software from sales or use tax. California is not a member of the SSUTA.

More info

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Massachusetts Software Maintenance and Support Agreement