So I just read that a new tax went into for effect on July 31, 2013 for B2B software and applies to all “computer software, including pre-written upgrades, which is not designed and developed by the author." And it’s clear that no one, not even the State, has clearly defined and identified what situations are or aren’t taxable.
I’m not in Mass. or selling B2B software to customers there, but if you are and you plan on selling your software to someone in Massachusetts, things just got more complicated. The wording is vague, the State is still frequently answering questions(PDF) and they say they plan on issuing amendments by mid-October. Here’s the State’s announcement and a very comprehensive article from a founder in Massachusetts over at Fast Company Labs.