Assembly repeals tech tax, passes millionaires tax

Thousands of IT firms, Web designers and computer whizzes are breathing easier after the Maryland General Assembly over the weekend repealed a sales tax it slapped on their work in November, replacing it with a new income tax on residents earning more than $1 million a year.

Legislation that will force about 6,500 millionaires to pay $17,000 a year more in state income tax to make up for the estimated $200 million gap the so-called tech tax was expected to generate is now headed to the governor?s desk. Members of the House of Delegates voted 93-44 on the bill, which also includes $50 million in cuts to transportation funding and requires the state?s Board of Public Works to identify an additional $50 million in cuts.