Friday, February 29, 2008

Computer Services Tax in Maryland

In our state, we are wrestling with the new computer services tax that is going into effect July 1, 2008. This tax essentially treats most computer services as a traditional retail sales item and imposes a 6% sales tax. Being in a small state with several bordering states with good economies, it is pretty easy for a lot of organizations to simply move across the line to the District of Columbia, Delaware, or Pennsylvania, or across the Potomac River to Virginia. This is a short-sighted effort to bridge the state's budget deficit in the near term while driving away long term security by driving the business out of state. A similar tax has been imposed, and eventually repealed, by other states.

Seen at the anti-Computer Services Tax rally

The Tech Council of Maryland is one of many groups leading the charge to repeal the tax before it's too late. An event was held in Annapolis for the press and state legislature to call attention to the problem. There was a lot of lip-service paid, but the real test will be to see what actions are taken.

Here is a YouTube video of my brief speech at a recent rally.

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