SALISBURY, Md. - A business-to-business tax may be dead in the water in Annapolis, but a new proposed 3% tax on I-T and other tech businesses and services is drawing the ire of some in the Eastern Shore business community.
This is the latest proposal from leaders in the state capital to address Maryland's growing $3.3 billion dollar budget deficit. The proposal could earn the state $497,000,000 in revenue according to estimates.
Justin Kelley, owner of a technology business in Salisbury worries about the impact. "The impact on my business would be huge, because we are a technology services firm for businesses on Delmarva, and everything we provide to our clients would then be taxed at an additional rate," he said.
Kelley is also concerned people may just cross the state line to Delaware to avoid this tax. "There's always that chance that a business that's trying to save money and lower costs could go across state lines to get services from another provider," he said.
But Governor Wes Moore continues to stress his administration supports business. "We're transforming Maryland to a state that is unapologetically pro-business, and is unapologetically pro-growth not just in words, but in deeds," he said.
Bill Chambers, President of the Salisbury Area Chamber of Commerce worries decisions being made in Annapolis will have an outsized impact on the shore.
"We're one of the few regions of Maryland that's growing our economy right now and this tech-tax is going to stifle innovation with small companies all the way up to large companies," he said.
This tax would apply to everything from website building services, computer repair, and even streaming services like Netflix.
Maryland's legislative session ends in less than two weeks, officially wrapping on April 7.