ANNAPOLIS, Md. — Business leaders and their lobbyists flocked to Annapolis aimed at defeating a bill that would increase taxes on services businesses provide each other.
The bill adds a 2.5% tax on business-to-business services.
"This bill makes doing business in Maryland harder and less strategic," said Rebekah Olson, CEO of the Maryland association of CPA's.
"So what we're doing here is we're incentivizing businesses to relocate," said William Chambers, President and CEO of the Salisbury chamber of commerce.
"Maryland should be making it easier for businesses to thrive, not forcing them to look elsewhere," said Kimberly Prescott, Owner, Prescott HR.
More than 120 people signed up to testify against the bill in the house hearing.
Another 300 wrote in opposition.
The lone person for it, the sponsor of the bill, Delegate David Moon.
"The events in recent weeks with the administration are causing a need to reevaluate every aspect of the general assembly's work this session," said Moon, A Democrat from Montgomery County.
While moon is proposing the bill as a starting point and one of multiple options for the state.
As written, it would add a tax to things like accounting or tax services, landscaping, IT services, consulting and even photography, and more.
"This bill, quite frankly, will create tremendous negative adverse consequences for Marylanders. For job creators, for employees, ultimately would pass down to consumers and would reverberate throughout our economy," said Delegate Jason Buckel, A Republican from Allegany County.
According to the legislative analysis, the bill brings in just under $1 billion next year.
Then, it jumps up to nearly $1.5 billion by 2030.
Senate President Bill Ferguson said the state is seriously considering all the proposals on the table to balance the budget.
"The last thing in the world we want to do right now is raise revenues, but the alternative is consequential and it means kicking kids off medicaid, it means shutting down long term care facilities, it means reducing access to foster care," said Ferguson.
Governor Wes Moore has repeatedly said he wants to spark private sector growth in the state.
Something he and Republicans in Annapolis agree on.
The bill is up against a key legislative deadline on March 17 when bills must cross over to the other chamber.
