Bill Positions

Bill Number: HB 313

Bill Title: Sales and Use Tax - Computer Services - Resale Exemption

Bill Sponsor(s): Delegates Miller and Feldman

Subject: Budget & Taxation

Committee: W&M

Bill Summary: This bill would exempt from the sales tax the sale of a computer service if the buyer intends to use the computer service directly or predominately in performing a computer service for another person.

History: The sales tax on computer services was enacted at the 2007 special session, effective 7/1/08.

Chamber Position: Support

Position Summary: The sales tax on computer services will impose a non-competitive tax on Maryland technology businesses that will damage a critical sector of Maryland's economy. If the tax is allowed to go into effect this July, Maryland businesses will source their technology acquisitions to other states and Maryland-based technology companies will locate to adjacent states that do not impose this tax. Providing a sale for resale exemption would help to avoid pyramiding in the tax structure and effectively exempt subcontractors in a service performed by a prime contractor to an exempt buyer.

Position Statement: Coming Soon

Chamber Staff: Ron Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.