Maryland Lawmakers Vote Down Bill To Expand Sales Tax To Services
ANNAPOLIS, Md. (WJZ) -- Your services are safe from the taxman.
The Maryland General Assembly will not be imposing a sales tax this year. The decision comes after a widespread protest.
Maryland Bill To Expand Sales Tax To Services Draws Crowds To Annapolis
The proposed expansion of the sales tax to include services was intended to fund the blueprint for the Kirwan Commission recommendations for Maryland schools.
"The blueprint is the most comprehensive and the best education reform plan that's been produced in any state in the country," Delegate Eric Luedke said.
Maryland lawmakers floated the idea of cutting the sales tax from six percent to five percent and expanding the tax to include services.
Organizations representing realtors, insurance companies, auto repair, AAA, CPAs, The Bar Association and Bankers Association packed a House Committee hearing in opposition to the bill.
"The accounting services, the payroll services to your local grocery store, depends on that grocer to pay that cost and then pass it down to the consumer," Mike O'Halloran, of the National Federation of Independent Business, said.
The bill died in committee.
"We got a lot of feedback from small business owners, from constituents," Luedke said. "It was always just one option on the table for how to fund the blueprint. So we made a decision on a bipartisan basis unanimously to reject that bill, but we're looking at other options."
The challenge for lawmakers is to find other sources of funding.
"Bottom line, we need to make sure our kids have great schools," Luedke said. "We have to fund the schools."
The bill is on the floor for a final vote Friday.
