This was a bad one not just for the Bay State but also for the entire North American channel. Last summer the Massachusetts state legislature quickly passed a 6.25 percent software services tax that affected solution providers, ISVs and just about any company that provided any software services to customers in Massachusetts. And the tax didn't just affect VARs and integrators based in the state; it hit any company doing business in the state, too. Thankfully, the law was eventually repealed weeks later after considerable pressure from a broad range of companies, from local solution providers to Staples and BJ's Wholesale Club. But the fact the tax passed at all represents a chilling warning for the channel that new Internet and technology-related taxes are on the government's radar.