Friday Five
April 25, 2025 | This week's latest on Maryland business and government
1 — New tech tax targets an industry Maryland wants to grow
Maryland's new 3 percent tech tax covers a wide range of data processing, cloud storage, software and technology services. The Maryland Chamber estimates that the tax will impact roughly 15,000 employers that provide 99,000 jobs. But the tax runs counter to Governor Moore’s priorities to make Maryland more business friendly and, specifically, to grow the cybersecurity industry here, which has been fostered by presence of the U.S. Cyber Command at Fort Meade since 2009.
Maryland's outmigration problem: From 2013-2022, Maryland lost $20 billion in adjusted gross income from 135,000 taxpayers who moved to other states. Where did these folks move? The top destination was Florida, followed by North Carolina, Texas, South Carolina and Delaware. What do these states have in common? Relatively lower taxes and better business climates as rated by the Tax Foundation.
2 — Governor Moore signs new bills into law: What will change?
Governor Moore, House Speaker Adrienne Jones and Senate President Bill Ferguson signed over 140 bills Tuesday afternoon, including the Expungement Reform Act of 2025 which will expand the ability for people to have their criminal records expunged upon completion of their sentence and rehabilitation requirements for certain crimes, including probation violations. The bill, brought on behalf of the Moore administration, expands upon an executive clemency order the governor issued last June which pardoned 175,000 convictions related to cannabis possession. The wait time removal for expunging records is effective Oct. 1.
Our position: The Maryland Chamber supports expanded career and education opportunities and attainment for justice-impacted individuals, including individuals in the addiction recovery community and those who are currently or formerly incarcerated, while ensuring employers are protected from liability associated with hiring. These efforts will build a stronger workforce for the future.
3 — Tradepoint Atlantic's $100M Howard County expansion
Tradepoint Atlantic will expand its footprint in Maryland with a $100 million, 500,000-square-foot logistics complex in Howard County. Plans for Tradepoint at Savage Crossing, located on Route 1 near Laurel, Md., were released Tuesday and represents the company's first Maryland development outside of Baltimore County, where the firm has converted 3,300 acres at the former Bethlehem Steel plant in Dundalk into an international trade center with over $2 billion in private investment so far. Roughly 500 new jobs are expected in Savage once the 35-acre project is built out.
Next steps: Groundbreaking on the first of three Class A industrial warehouses will take place in early 2026, and the complex is expected to be completed in 2029.
4 — Maryland federal contractor layoffs increase as Trump slashes federal spending
Maryland federal contractor layoffs continue to rise as the Trump administration makes major organizational changes and slashes federal agency budgets. More than 3,000 employees at companies that contract with the federal government have received layoff notifications this year, according to a Maryland database. Many companies reporting layoffs worked with the United States Agency for International Development (USAID), which provides humanitarian assistance around the world. Others worked with agencies like NASA, the Department of Education and the Department of Health and Human Services.
Federal reliance: In Maryland, if federal employment were to decline by 30,000 with 10 percent less in federal spending, the state’s total employment would decrease by close to 100,000, according to the Regional Economic Studies Institute at Towson University. This highlights the state's prolonged dependence on federal employment and funding, raising concerns about economic self-sufficiency.
5 — Board of Public Works reaffirms state property tax rate at current rate
Maryland property owners will not see an increase in the state share of the property tax rate next year, when the rate will hold steady at the same level it has been since 2007. The three-member Board of Public Works voted unanimously Wednesday to hold taxes on commercial and residential properties at 11.2 cents per $100 in assessed value. The rate on utilities will remain at 28 cents per $100 of assessed value. State property taxes are used to repay general obligation bond borrowing. Maryland enjoys a triple-A bond rating, the highest, from all three major rating agencies — Fitch, Moody’s and Standard & Poor’s. The high rating means the state pays lower interest on money it borrows. But there are rumblings about a potential downgrade on the horizon.
Taxes will still increase: Taxpayers are still likely to see their tax bills go up, however, even as the tax rate remains flat. That’s because all 23 counties and Baltimore City reported increased assessments for seven consecutive years.
Advancing inclusive partnerships for a Maryland where all businesses and their communities thrive
The Maryland Chamber of Commerce is the state’s leading business advocacy organization — committed to working with our alliance of partners on critical public policy issues. With a focus on economic development and grassroots advocacy, we impact policies that directly affect Maryland business.
