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

• Delegates see vindication on 'tech tax'
• Tech tax repeal headed to House floor

The Senate Budget and Taxation Committee voted this afternoon to repeal the computer services sales tax. As an alternative, the committee:

• Increased the income tax rate for those earning more than $1 million a year to 6.25 percent for three years.
• Cut $50 million in transportation funding for five years.
• Directed the Governor to cut an additional $50 million before July 1, 2008.

The bill, SB 46, now moves to the Senate floor. The committee vote was 10-5.

Senators voting for the proposal included:

Ulysses Currie
James E. DeGrange, Sr.
Verna L. Jones
Edward J. Kasemeyer
Nancy J. King
Nathaniel J. McFadden
Donald F. Munson
Douglas J. J. Peters
James N. Robey
Robert A. (Bobby) Zirkin

Senators voting against the proposal included:

David R. Brinkley
George C. Edwards
Rona E. Kramer
Richard S. Madaleno, Jr.
J. Lowell Stoltzfus

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.

Baltimore Sun reporter Gadi Dechter posted an item on the Sun's The Session Blog reporting that Senate President Mike Miller seems optimistic about the tech tax repeal.

"It's going to be one or two votes either way," Miller said. "But I think we're OK."

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.

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.

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.

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

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.

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.