Bill Positions

Bill Number: HB 281

Bill Title: Sales and Use Tax - Computer Services - Government Contracts Exemption

Bill Sponsor(s): Delegate Bohanan, et al

Subject: Budget & Taxation

Committee: W&M

Bill Summary: This bill would exempt from the sales tax computer services that are used directly or predominately in fulfilling a contract or subcontract with the federal government.

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. Taxing federal information technology contracts would place at risk potential BRAC jobs, as well as the $1.3 billion in federal information technology contracts performed in Maryland annually.

Position Statement: Coming Soon

Chamber Staff: Ron Wineholt

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