Bill Positions

Bill Number: SB 567

Bill Title: Computer Services Tax Repeal and Transportation Funding Act

Bill Sponsor(s): Senator Garagiola, et al.

Subject: Budget & Taxation

Committee: B&T

Bill Summary: This bill would repeal the sales tax on computer services and increase the motor fuel tax rate by 4 cents per gallon effective 7/1/08, and another 4 cents effective 7/1/09. The bill would also establish a task force to study the feasibility and ramifications ofapplying the sales tax to a variety of services.

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. Replacing the sales tax on computer services with a gas tax increase is a fiscally responsible solution.

Position Statement: Click here to download a pdf version of the Maryland Chamber's position statement.

Chamber Staff: Ronald Wineholt

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