ANNAPOLIS, MD — Governor Wes Moore announced Monday afternoon a 'broad' business to business tax on services will not be in Maryland's final budget.
The highly contested piece of legislation drew more than 100 businesses to testify in-person and another 300-plus writing in against the bill.
"The broad business to business tax will not be in the final budget. So a broad b2b tax will not happen in the state of Maryland," said Governor Wes Moore in the halls of the State House Monday afternoon.
Officials within the administration say negotiations are centered around trimming down the number of services taxed and taxing both companies and consumers who use them.
Officials would not confirm which of the 16 categories of services included in the original bill would make it or the tax rate.
The Governor did not take questions after speaking to reporters.
Governor Wes Moore says services tax will target businesses and consumers
Moore added that the 'Sugar Tax' is not going to be included in the budget.
According to officials, the Governor is meeting with House and Senate leadership Monday evening to negotiate the budget even more.
Senate Minority leader Stephen Hershey released this statement following the meeting.
"In the General Assembly, nothing is every truly dead until Sine Die. While the 2.5% business to business tax may be lifeless as proposed, we are waiting to see how this concept may mutate into something potentially worse.
We are now hearing that Democrats may charge a higher sales tax for a smaller number of services that will be paid by both business and consumers alike.
This is not an improvement - it now also forces middle class Marylanders to pay a new tax for services.
The General Assembly should refocus its efforts on cuts – making deeper reductions to the Blueprint, implementing a state workforce hiring freeze and right-sizing government before we ask businesses and individual taxpayers for a bailout."
Maryland's Freedom Caucus released a statement on the Governor's budget updates
The Maryland Freedom Caucus is encouraged that Governor Wes Moore has come out in opposition to the business-to-business sales tax and the sugary drink tax today. With the ever-increasing cost of living in the state of Maryland, these bills would have been devastating for the small businesses and families that call this place home. But his budget still includes massive tax hikes.
Governor Moore’s budget proposal still includes an income tax increase on 20% of Marylanders under the guise of tax reform, retains the $0.75 delivery tax, a "millionaire's take" which hilariously begins at $500,000, reduces the estate tax exemption threshold, caps vehicle trade-in allowances, sneaks in a property tax increase, and piles on numerous fee hikes on things like car registration to emissions testing. We are also concerned that a last-minute sales tax increase may be introduced to fill the budget deficit.
The crushing weight of the Blueprint for Maryland's Future remains unaddressed, guaranteeing that the counties will have to raise property taxes to pay for its unfunded mandates.
The Governor and Maryland Democrats need to take a good hard look at what a balanced budget that promotes growth and does not raise the cost of living for Marylanders looks like. The Maryland Freedom Caucus will not support a budget that increases taxes on Marylanders.
The Maryland Freedom Caucus is asking the public to join them at arally on Wednesday, March 19that Lawyer's Mall in Annapolis at 6pm to make their voices heard on this critical issue.