The Salisbury Area Chamber of Commerce, representing more than 700 businesses across the eastern shore, has grave concerns regarding legislation (HB 1554/SB 1045) that would expand Maryland’s sales and use tax to business-to-business (B2B) services.
This proposed legislation will tax transactions between businesses for services including accounting, landscaping, payroll and technology. If passed, it will create serious economic challenges for Maryland businesses, most of whom are small businesses. This legislation is a direct assault on Maryland’s small businesses.
HB 1554 and SB 1045 would isolate Maryland from its neighboring states. While this new tax may provide a short-term revenue boost, the long-term implications could outweigh the immediate benefits. Mandating that Maryland businesses absorb this new tax on essential services they rely on adds significant financial pressure on business owners. Moreover, if this legislation is passed and signed by the Governor, it raises concerns about the possibility of additional taxes on businesses in the future.
The Salisbury Area Chamber of Commerce will continue to collaborate with lawmakers in the General Assembly on initiatives that aim to grow Maryland’s economy by promoting a competitive business environment. Unfortunately, this proposed legislation does not support those goals.
For more information on the Salisbury Area Chamber of Commerce visit www.salisburyarea.com or contact Wiliam R. Chambers, President/CEO at 410-749-0144 x 101 or bchambers@salisburyarea.com.
