Business Organizations, Owners Mobilize Against Tax Assault on Maryland Businesses

WHAT: Press conference featuring a coalition of Maryland's most influential business organizations and small business owners from across the state uniting to oppose HB 1554/SB 1045, the proposed 2.5% tax on business services.

Business leaders will share concrete examples of how this tax would impact their operations, employees and customers ahead of Wednesday's hearings in the House Ways and Means Committee (1:00 p.m.) and Senate Budget and Taxation Committee (3:00 p.m.).

WHO:

• Mary D. Kane, President & CEO, Maryland Chamber of Commerce
• Cailey Locklair, President, Maryland Retailers Alliance
• Mike O’Halloran, State Director, National Federation of Independent Businesses
• CEOs of many local and regional chambers from the Maryland Chamber Federation
• A diverse coalition of business and trade associations representing key industries, including hospitality, tourism, accounting, real estate, construction, technology, housing, transportation and more
• Small business owners available for interviews, representing industries impacted by the proposed 2.5% B2B services tax

WHEN: Wednesday, March 12 at 11:00 a.m.

WHERE: Parley Room Patio, 25 State Circle, Annapolis, Md. 21401

WHY: Maryland's business community is at a breaking point. This proposed 2.5% tax on business services is the latest in a series of proposals that treat businesses as revenue sources rather than partners in growing the economy.

Many small businesses — often called "the backbone of Maryland's economy" by the same lawmakers targeting them — say this tax could cost them $50,000 to $100,000+ annually, with some reporting it would completely erode profit margins. One business warned it could result in $400,000 to $500,000 in cumulative costs.

Business owners — from major associations to small businesses — are united in opposition. This tax forces businesses to make impossible choices: cut staff, raise prices, or relocate. Many see it as the final straw after years of being treated as "budget-fixing ATMs."

Key services like accounting, IT support, payroll and marketing would be taxed, burdening businesses with thin margins and long-standing investments in Maryland communities.

Although presented as a "business-to-business" tax, it’s a hidden consumer tax. When a restaurant pays more for services like accounting and IT, customers will feel the effects through higher prices.

With Maryland ranking as the third most expensive state to do business in and as having the 46th worst business tax climate, this proposal sends a troubling message about the state’s commitment to fostering a business-friendly environment.

Business leaders will share stories of how this tax would harm their operations, employees, and investment decisions, and advocate for more sustainable budget solutions — focusing on creating jobs and examining spending, not imposing new taxes that stifle growth.

URGENT TIMING: This last-minute legislation reflects a troubling pattern of rushing significant tax legislation through with minimal notice. Despite facing critical business challenges, dozens of business owners are taking a full day away from their operations to attend both the press conference and legislative hearings. This unprecedented business community response signals the existential threat many perceive from this tax proposal.

INTERVIEW OPPORTUNITIES: Individual business owners from various sectors and regions of Maryland will be available for interviews before and after the press conference. Media representatives can speak directly with affected business owners about the concrete impact on their operations, employees and future in Maryland.