Imagine having to pay taxes on everyday services like getting your car repaired, hiring a landscaper, or even taking your pet to a veterinary appointment. Or, owning a small business and having to pay taxes for accounting and legal services, shipping and delivery services or advertising and printing services. For Maryland residents and businesses, this could become a reality if the proposed House Bill 1515, deceptively labeled “Sales and Use Tax – Rate Reduction and Services,” becomes law. While HB 1515 proposes a modest reduction in the state sales tax rate from 6% to 5%, it simultaneously aims to expand the sales tax to a wide range of services that have never been taxed before — a move that would result in a staggering $2.9 billion tax increase coming out of the pockets of Maryland residents and businesses.
Our position: Legislators must heed the concerns of their constituents and reject House Bill 1515 to safeguard Maryland’s economic strength. Excessive spending should not be shouldered by citizens and businesses. Rick Weldon, President of the Frederick County Chamber of Commerce and partner in the Maryland Chamber Federation, told the Frederick News Post that “It’s time that our legislators are held to a simple premise: While we want the best possible education for our students, it should not be done at the expense of tens of thousands of small businesses across our great state.”
