House of Delegates Passes Tech Tax Repeal

The House of Delegates gave final approval to the tech tax repeal bill tonight by a vote of 93-44. The Daily Record has more here.

House Ways & Means Committee Approves Repeal

The House Ways & Means Committee approved SB 46 today by a vote of 13-8. It will be on the House floor this afternoon.

This bill, which the Senate passed Thursday, would repeal the sales tax on computer services, impose a 6.25 percent individual income tax bracket for three years, transfer sales tax revenues from the transportation trust fund to the state general fund for five years, and direct the governor to cut an additional $50 million from the budget before July 1, 2008.

Today's Headlines

Baltimore Sun Video Update on the Tech Tax

The Baltimore Sun's Andy Green discusses "day 84 of the computer services tax death watch" in today's video edition of The Session, the Sun's blog on the General Assembly.

Click here to view the video.

Tech Tax Update - April 1

This story in today's Washington Post outlined the latest updates regarding the potential repeal of the computer services sales tax.

Based on what the Maryland Chamber has heard, it doesn't look like the Senate Budget & Taxation Committee will vote on a proposal today. We'll let you know if that changes.

At the conclusion of today's Senate session, Senate President Mike Miller said he would be polling members of the Senate this afternoon to get a better sense of where the members stand on issues like cuts to transportation, additional taxes and cuts to the budget. As the Post's story outlines, these are the three elements of a proposal supported by Governor's O'Malley to repeal the tech tax.

We'll post additional updates throughout the week.

Leaders Meet to Discuss Tech Tax Repeal

Governor O'Malley met with legislative leaders last night to discuss the potential repeal of the tech tax. No consensus has been reached.

There is less than two weeks remaining in the legislative session. It's important that we keep the pressure on. Contact your legislators and encourage your friends and co-workers to do the same.

Read more about last night's meeting here and here.

It's Crunch Time: Call Your Legislators

The General Assembly session will end in less than two weeks, on April 7.

Call your legislators today. Urge them to repeal the tech tax:

  • The tax will stifle economic development and job creation.
  • It will make Maryland businesses less competitive.
  • It will hurt small and growing companies.
  • It will damage important Maryland industries that rely on technology services to innovate and compete.
  • It will be difficult for the state to administer.

Techies Rally in Annapolis

Thank you to everyone who made it to Annapolis for this morning's rally. I'll post more photos and updates throughout the day.

Here are a couple stories:

Baltimore Business Journal: Computer services tax hearings mobilize IT industry in Annapolis

The Gazette: Pols split over 'tech tax' replacement

March 12: Rally in Annapolis to Repeal the Tech Tax

Join us for a rally in Annapolis on March 12 to help send lawmakers a clear message. The tech tax is a threat to Maryland's future. It must be repealed!

We need hundreds of business people to turn out. Please help us spread the work. Tell your employees, colleagues and clients. Any industry that relies on computer services to drive innovation and growth will be stifled. Industries like financial services, health care, bioscience, and government contacting will all be harmed unless the tax is repealed by April 7.

When:Wednesday, March 12 9:30 a.m.

Where: Lawyer's Mall in front of the State House - Map | Parking

For more information, contact Will Burns at (410) 269-0642, (301) 261-2858 or wburns@mdchamber.org.

Senate to Hear Tech Tax Bills on March 12

The Senate Budget and Taxation Committee will hear the computer services sales tax bills on March 12 at 2 p.m. The House Ways & Means Committee will hear the House bills on the same day at 1 p.m. If you care about this issue, please mark March 12 on your calendars. We will need a huge business presence in Annapolis for the hearings.

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)

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