The General Assembly begins a new session next week, and local organizations plan to carry on the fight over several issues from last fall?s special session. Topping their lists is a repeal of a sales tax on computer services enacted during that session.
That issue leads the Baltimore County Chamber of Commerce?s annual letter to county lawmakers that will be unveiled this morning.
“I don?t know why people would pick this [service] to tax, because this is really the one that stalls development … in this informational age,” chamber President Keith Scott said.
The chamber urges lawmakers to cover half the estimated $200 million in revenue from that tax with cost reductions, and the remainder with other revenue sources.
“I justdon?t feel that it?s an appropriate tax at the time we?re moving into a technology-based industry, that it?s critical to have this added on,” said Don Fry, executive director of the Greater Baltimore Committee. “It disproportionately affects small businesses. We?ll work with the legislature to find some cost savings and cuts to make up the difference.”
The chamber is part of an group organized by the state Chamber of Commerce and the Tech Council of Maryland, which will begin efforts next week to repeal the tax, according to Will Burns, the chamber?s director of communication.
“We feel we?re building some momentum,” Burns said. “There?ll probably be numerous bills to repeal it, and the computer companies will get a hearing to provide meaningful feedback. Once [lawmakers] hear that feedback, we?re confident it?ll be repealed.”
But repealing the tax will mean providing exact statistics about its impact.
“You can go with the common sense and say we?re a technologically based economy, taxing that will hurt us, but that doesn?t have any hard numbers,” Scott said. “We?ll have to sit down and say that?s what we?ll lose, these are the jobs we?ll lose. Those are the hard numbers they?ll be looking for.”
More generally, Fry said his group and others would have to urge the state to obtain more stable, long-term revenue streams and to curb spending.
“After the special session … we have to fight against people coming in with new programs thinking there?s all kinds of new money, where there?s not,” he said. “The legislature has to invest in those areas that will have a good return on investment.”
