Hundreds Rally for Tech Tax Repeal

Hundreds of business people gathered in Annapolis yesterday to advocate the repeal of the computer services sales tax, which will take effect July 1.

"I think this is wonderful," Senate Deputy Majority Leader Rob Garagiola (D-Dist. 15) said. "I'm shocked, actually, by how many people are here."

A capacity crowd filled the Maryland Inn for a media briefing, where a group of business people outlined how the tax will impact Maryland businesses and the state's economy.

"Martek Biosciences is a $300 million biotech company in the State of Maryland. When we invest in information technology, we do it to improve our efficiency, to improve our effectiveness, and we do it to improve our competitiveness on a global landscape," said David Ronis, Martek's Chief Information Officer. "We have operations in four states around the country. I don't think legislators realize just how easy it is to relocate outside of the state."

"We have about 200 employees in Maryland in our Montgomery County office. We also have offices in California, Washington State, and we're about to open an office in Northern Virginia," said Gail Bassin, Chair of the Board/Treasurer of JBS International. "This use tax on IT services will definitely harm our business in Maryland."

Larry Letow, President and COO of Convergence Technology Consulting voiced his concern over the impact the tech tax will have on emerging technology companies. "The tech community is largely based on companies that started small and grew. We need IT companies, especially small businesses, to focus on growth, not to focus on survival."

Business people in attendance were also joined by a bi-partisan group of legislators, who vowed to work together to repeal the computer services sales tax.

"Legislators are going to have to find the courage to do the right thing here and repeal this tax, which never should have been implemented to begin with," said Del. Jeannie Haddaway (R-Dist. 37B). "We realize how important it is to your businesses. We realize the affect it's going to have on small businesses."

Lawmakers also urged business people to keep the pressure on their lawmakers. "I'm convinced that this type of event is the only type of activity that will convince the legislature and the executive branch to repeal this tax, House Minority Leader Del. Tony O'Donnell said. "We need you to continue to pump up the volume and continue to put the pressure on. We need your letters, your emails and your calls."

"You all need to keep the pressure on. How is it impacting your businesses? Are you making alternative plans of moving if this goes into effect? That's the kind of message that needs to be told to our legislators," Sen. Garagiola said. "I think it will resonate. I am hopeful that we will get a bill to the governor's desk. I'm committed to working hard to make sure that happens. You can count on my support. We're going to make it happen, but it's going to take your help and your support."

Help us keep the pressure on. If you haven't already contacted your legislators, please contact them today. You can also help by spreading the word to your colleagues and employees.

Photo: Sen. Rob Garagiola addresses the crowd during Save Maryland IT Day on Feb. 27. He is surrounded by legislators who support the repeal of the tech tax, including (L to R) Del. Shane Pendergrass (D-Dist. 13), Del. Donna Stifler (R-Dist. 35A), Del. Jeannie Haddaway (R-Dist. 37B), Del. Tony O'Donnell (R-Dist. 29C), and Del. J.B. Jennings (R. Dist. 7)