Bill Positions

Bill Number: HB 670

Bill Title: Sales and Use Tax - Computer Services Used in Production Activities and Research and Development

Bill Sponsor(s): Delegate Barve

Subject: Budget & Tax

Committee: W&M

Bill Summary: This bill would exempt from the sales tax the sale of a computer service used in a production activity or research and development.

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 an exemption for production activities and research and development would help to avoid pyramiding in the tax structure and effectively exempt manufacturers and R&D companies from the tax.

Position Statement: Coming Soon

Chamber Staff: Ronald Wineholt

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