Representatives from at least 300 Maryland companies will descend on Annapolis today to voice their concerns about Maryland’s new 6 percent computer services tax during two hearings on proposals to repeal or alter the new levy.
“We will absolutely pack the chambers,” said Julie Coons, chief executive officer of the Tech Council of Maryland.
Organized by a coalition composed of the council, the Maryland Chamber of Commerce and the Maryland Computer Services Association, the firms will hold a rally at 9:45 a.m., visit the offices of their delegates and senators, and wrap up the day with hearings before the House of Delegates’ Ways & Means Committee starting at 1 p.m. and the Senate Budget & Taxation Committee at 2 p.m.
Roughly 20 bills proposing to either cancel the tax completely, grant exemptions or pass the tax to another entity are the subject of the hearings. The three associations have coordinated panels of about 10 people total to testify before both committees about the tax’s impact, and other individuals will most likely add their names to the testimony list. Aside from the heads of each organization, who will provide a general overview of the tax’s impact, business owners large and small will share their stories.
Larry Letow, president and chief operating officer of Convergence Technology Consulting LLC in Glen Burnie, will describe how his company may lose much of its subcontractor work for the federal government and the state of Maryland. “[Prime contractors] will not absorb the tax,” he said, and will choose an out-of-state contractor or use in-house resources.
Another company will talk about a long-standing client who walked away from a contract last week because of the tax, said Thomas Loveland, co-founder of the Maryland Computer Services Association and chief executive officer of tech company Mind Over Machines in Owings Mills.
Though it is pushing hard for a change, the tech community acknowledges that the recently announced $330 million budget shortfall doesn’t boost its calls for repeal.
“No question it hurts our chances,” said Will Burns, the chamber’s communication director.
