ANNAPOLIS, Md. — Despite the governor saying a broad businesses to business services tax is off the table, Senate President Bill Ferguson says services will be taxed in this year's budget.
"Is it safe to say that a tax on services that are currently not taxed will be in the final form of the budget whether that is business to business, business to consumer," we asked Ferguson.
"It has to be, the revenue has to be accounted for and so in the BRFA(Budget reconciliation financing act) or budget together, the framework will be outlined," said Ferguson.
Governor Wes Moore's announcement Monday appeared to dial back the legislation.
The original piece would've taxed 16 business to business categories of service by 2.5%.
"The broad business-to-business tax will not be in the final budget," said Moore on Monday.
The Senate president was peppered with questions about the services tax.
Services will get taxed in Maryland's budget
He feels the governor, House and Senate are close to an agreement.
"I think everything is fluid until it's not and so I would say until it's a final deal, it's important to note we are in good conversation," said Ferguson.
He added that a joint announcement will be made when an agreement is reached.
Republicans are sounding the alarm on the services tax.
Initially feeling they had a win but changing tune once it was made clear services are still getting taxed.
"The truth of the matter is Maryland's private sector economy cannot withstand $500 million, $600 million, a billion, billion and a half whatever the numbers are we cannot withstand that type of additional tax into our economy," said Delegate Jason Buckel, a Republican from Allegany County.
"I think we've had tremendous impact in getting the public to understand what's really happening here which is the possibility of large tax increases," said Senator Justin Ready, a Republican from Carroll and Frederick Counties.
Ferguson said he believes the budget will be done before the 90th day of session is over and an extended session won't be needed.
