ANNAPOLIS, Md. — In Maryland, it's tax season in more ways than one.
With Thursday's state budget structure agreement, businesses are considering the effects of potential new taxes, and taxes that were spared, on their industries.
First, what was spared: "We have agreed to take a number of things off the table," Senate President Bill Ferguson (D) said at a Thursday afternoon news conference.
According to Ferguson, lawmakers are not increasing the Maryland sales tax rate on goods, nor are they adding a fee for deliveries. They are not increasing property taxes, the estate tax, sugary drinks or snacks, the gas tax, nor are they raising money from iGaming.
Accounting, payroll, staffing, office support, employment services, consulting, design and printing, public relations and marketing and financial services were all spared new taxes.
The car trade-in allowance was left unaltered as well. Peter Kitzmiller, president of the Maryland Automobile Dealers' Association, expressed gratitude toward that decision, stating it would have had a significant impact on consumers' car payments.
"We are extremely pleased that the repeal of the trade credit will not be part of the budget going forward, and that Marylanders would continue to receive credit for whatever vehicle they trade in," he told WMAR-2 News hours after the news conference.
From Annapolis, Kitzmiller told WMAR, however, he is hearing legislators consider raising the excise tax on cars from 6% to 6.8%.
Businesses weigh in on the effects of tax changes
"It just doesn't make sense to us at this time to add a tax increase on top of these tariffs that are coming," Kitzmiller added.
Among the industries impacted by rising taxes: data and IT services, a fee which the senate president argued would keep Maryland in line with competing states.
Wealthy Marylanders will pay more with a 'high income tax bracket,' Ferguson said, while noting they'd pursue an increase in the standard deduction.
Cannabis taxes would increase under the framework, Ferguson said, but did not offer particulars. A proposal earlier this year would have seen the tax on the growing industry rise from 9% to 15%.
A dispensary owner argued off-camera to WMAR it would be bad for consumers, and would encourage the illegal market.
In January, another dispensary owner told WMAR-2 News "no one is in favor of it. Everybody in the industry that is part of the regulated market, understands the impact tax has on overall revenue and customers willing to come in off the street from their illegal dealers."
READ MORE: Proposal to raise state cannabis tax sprouts vendor unease
