"I intended House Bill 1515 to be a bit of a conversation starter," House Majority Leader David Moon told the Ways and Means committee in an earlier-than-normal bill hearing Monday morning.
During his testimony, Delegate Moon routinely brought up that this is just the beginning of the state deciding how to deal with its budget issues.
Projections show Maryland is billions short of the money needed to cover funding for major education and transportation plans.
"Financing constitutionally required public education, roads, transportation infrastructure, workforce development. These are all the things we've said our taxes should go to, we've by and large agreed on this and this is what we're here to do," said Delegate Moon, a Democrat from Montgomery County.
His plan, one recycled from another Delegate during the 2020 session, is to put a five percent tax on services.
It would also lower the overall state sales tax from six to five percent.
The estimated impact is $3 billion each year.
Republicans and small business owners rejected the tax increase during the bill hearing.
"The Maryland Society of Accounting and Tax Professionals opposes House Bill 1515 due to the additional burdens it would impose on small businesses and tax professionals across the state," said Giavante’ Hawkins, representing tax professionals.
Delegate Jason Buckel and Delegate Moon, both leaders in their respective parties, went back and forth on the bill.
"How do we raise the $2.6, $2.8 billion in revenues," asked Del. Buckel.
"There are a number of options before you," replied Del. Moon.
"They're all tax increases," said Del. Buckel.
"Nope, some of them are closing loopholes, I don't agree with that framing at all," said Del. Moon.
The bill is highly unlikely to make it to Governor Moore's desk this session.
Senate President Bill Ferguson said Friday the bill won't go anywhere in the Senate.
Regardless of the bill getting across the finish line this year, it marks the beginning of a difficult process to deal with the current budget shortfalls.
