By Pat Warren

ANNAPOLIS, Md. (WJZ) — A sweeping tax proposal in Maryland has people sitting up and taking notice.

It is a sales tax on services, something Maryland doesn’t do now, but supporters say would bring in the hundreds of millions of dollars necessary to fund the new recommendations for improving public schools.

House Majority Leader Eric Luedtke said it’s time to look at the sales tax structure.

“Part of the issue is that, over time, our economy has become more services-based,” Luedtke said. “So the sales tax has been degraded over time. People are buying fewer things and more services.”

Governor Larry Hogan said he predicted this action, and it’s is why he opposes the Kirwan Funding recommendations.

“I specifically said they are going to raise the sales tax, and they swore they would not raise the sales tax, ” Hogan said.

He ticked off a list of services to be taxed.

“On daycare, on barbers, on dog walkers, on landscaping, on somebody that cuts your grass,” Hogan said.

While the bill expands the sales tax to cover services, it lowers the tax from 6 percent to 5 percent.

“I expect there’s going to be a lot of folks who have concerns,” Luedtke said. “I’m meeting with many of them already, and we want to talk through it and hear public input. This is at the end of the day another option on the table, but it’s not a certainty. We wanted to make sure we had the conversation.”

A similar proposal failed in the past, but Baltimore Delegate Maggie McIntosh said there’s also value in it for working families who buy more goods than services.

“This could end up actually helping the average family with kids who are in the stores and out of the stores,” McIntosh said. “I think really bearing the burden of our sales tax structure right now.”

A hearing is scheduled for March 3.

Comments (7)
  1. King Julian says:

    Raising taxes does not help anyone unless you are being given someone else’s money. This is how MOM did it tax everything.

  2. Steve Poteet says:

    All the tax money from the casino gambling went to the schools? Yeah, but what they didn’t tell you is that they took the same amount out of the school budget on the backside. I am so tired of hearing lies about new taxes for the schools. Its a bold face lie from the liers in the legislature. If we throw them in jail for lieing and stealing and defrauding the Maryland taxpayer, we will get what we need. It’s the only way.

  3. George Gracie says:

    This is another political trick to get more money, the democrats in this state are the worse in the country. We put more money in the schools each year and things just get worse. Enough is enough, start holding the school system accountable for the what they are doing with OUR MONEY. Hold the people in Annapolis accountable for there actions. It’s time to remove most of them out of office. The people of this state are getting what they reaped with those they keep putting back in office.

  4. Bill Smiths says:

    This is what liberals do….tax and spend until there is no more is left to spend. People are leaving this state because of the taxes.

  5. Anne Bennett says:

    What happened to all the money from the Lottery and Casinos that was supposed to fund public education? We need to know where all that money is going before putting more of a tax burden on the public.

  6. Patricia A. Scott says:

    Our company is 100% service and became responsible to pay sales tax many, many years ago. If it happens, and it reduces to 5%, I feel blessed.

  7. thenpp1 says:

    99% of the money eaten by “Administrative Costs.”
    In other news, county officials suddenly get pay raises.

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