ANNAPOLIS — As Maryland’s business community rails against a proposed tax on business-to-business services, top Democrats in the legislature have framed the proposal as just one of several options for raising the revenue needed to avoid drastic cuts to vital government services. Company executives, business owners, advocacy organizations and industry groups on Monday descended on Annapolis in an attempt to beat back the proposal, which would levy a 2.5% tax on services between businesses. State analysts have projected that the tax would raise more than $940 million next fiscal year and nearly $1.3 billion in the following fiscal year at a time when the state is staring down a more than $3 billion deficit that is projected to double in the coming years. But opponents, including Republican legislators, have claimed the tax would jack up prices paid by consumers, chase businesses from the state, prompt large companies to reconsider having assets in Maryland, force small businesses to lay off staff or shutter altogether, and generally hinder the state’s already stagnant economic growth. “We have heard over and over and over again, especially this legislative session, that Maryland needs to grow its economy,” Cailey Locklair, president of the Maryland Retailers Alliance, said during a news conference Wednesday. “This tax, on top of tax proposal after tax proposal and years and years of costly mandate after costly mandate aimed directly at the business community, that sends the exact opposite message,” she said. At a time of rising concern about a potential state-based recession, Democrats have said that revenue raised from this tax could preclude cuts to Medicaid and government programs and services for people with disabilities, foster care, and veterans, among others. During a hearing Wednesday, House Majority Leader David Moon said he chose to introduce the tax on services between businesses as an option for balancing the budget along with what is likely to be at least $2.5 billion in cuts. Gov. Wes Moore has introduced an expansive tax reform package, but several parts of his plan haven’t received the support they need in the legislature. Lawmakers have also considered legalizing online casino gaming, which could eventually raise hundreds of millions of dollars in revenue, but top state senators and the governor have been weary about how such a measure would exacerbate problem gambling, among other concerns. Since introducing the business-to-business tax, Democrats have appeared open to including carve outs for some types of businesses, including sole proprietors, and it remains to be seen whether they’d be open to lowering the proposed tax rate. Legislators have laid out more than a dozen categories of business-to-business services to which the tax would apply, though it remains to be seen exactly which business types will be subject to paying the tax. The proposal has also garnered some powerful opposition, including from companies like Under Armour, Northrop Grumman and McCormick & Company. Paul Nolan, McCormick’s vice president of tax, government affairs and strategic real estate, said during Wednesday’s hearing that the proposed tax would “encourage those of us here to consider other locations to receive any of the services that are taxed here.” Click here to view the article from The Daily Record .

ANNAPOLIS, Md. — Opposition is building against a proposed tax on business-to-business services. Around 400 people signed up in protest of the proposed legislation in Annapolis on Wednesday. Supporters said it would raise $1 billion in revenue and help shrink the state's $3 billion budget deficit . Legislators introduced the bill last week, stressing they need more options in the final stretch of budget negotiations. "This is an assault on Maryland small business, plain and simple," said Bill Chambers with the National Federation of Independent Business. "Tax would threaten the viability of existing business," said Cailey Locklear [sic], president of the Maryland Retailers Association. The small business community rallied to oppose a 2.5% tax on business-to-business services. "This isn't just a business issue. It's a jobs issue," said Mary Kane, president and CEO of the Maryland Chamber of Commerce. "It's an economic development issue, and it's a consumer issue that will affect every Maryland resident through higher prices and reduced services." "They will reduce staff hours. They will lay off employees. They will cancel expansion plans. They will raise prices, and, in some cases, they will have to close," Locklear [sic] said. "This bill is a tax compliance itself. Hire a CPA to ensure you are meeting your tax obligation, now taxed. Paying for payroll services to ensure your employees are paid appropriately on time, taxed. Bring in a consultant and new software to implement this very bill, now taxed," said Rebecca Olson, CEO of the Maryland Association of CPAs.\ The House Ways and Means Committee gaveled in testimony for and against the measure Wednesday, with 123 people signed up to testify. More than 400 registered their opposition. Those opposed to the tax even gathered outside the hearing room to watch on a TV monitor. The bill's sponsor, House Majority Leader David Moon, D-District 20, pointed out that the $2 billion in cuts and $1 billion in tax reform already on the table aren't enough to balance the budget. Moon said freezes in federal spending and the ongoing purge of federal workers are an additional burden. "It seems to me, with the floor falling out of our fiscal ship, that we need more options," Moon said. If passed, House GOP lawmakers want the governor to veto the bill. "We need to see some leadership from the top. We need the governor to come out and say he's opposed to this," said House Minority Whip Jesse Pippy, R-District 4. "Unfortunately, (Gov. Wes Moore) is noticeably absent from this conversation. He has stated time and again that growing Maryland's economy is his top priority while specifically touting investments in the life science and technology sectors, yet he is quietly standing by while fellow Democrats are poised to introduce this new tax and crush the very industries he's promoting. Maryland's private-sector business community needs the Governor (to) focus on the economic growth (for) our state and end his silence by forcefully opposing this brand new tax on services," Senate Minority Leader Steve Hershey, R-District 36, said in a news release. The bill sponsor and Senate president said it's a tough balance right now. There are no good choices, only challenging ones. When asked about whether Moore supports the tax, senior press secretary Carter Elliott said: "Governor Moore is proud to have proposed a budget that provides a tax cut for two-thirds of all Marylanders while also lowering the corporate tax rate and eliminating Maryland's unique burden as the only state in the country with both an estate and an inheritance tax. "The governor will continue to work with the State Legislature, local leaders, and all partners involved to ensure that we pass a budget that will give middle class families a break, grow our economy, and protect and invest in our people." Click here to view the article from WBALTV11 .

In an effort to address Maryland’s growing budget deficit , two Democratic lawmakers are considering a tax on sugary beverage distributors — a proposal that has sparked controversy among Republicans and retailers. House Bill 1469, sponsored by Montgomery County Del. Emily Shetty and Del. Joseline Peña-Melnyk, who represents Prince George’s and Anne Arundel counties, would add a 2-cent-per-ounce excise tax on the distributors of sugary beverages, powders or syrups. Revenue from the proposed sugary beverage distributor tax is projected to generate $500 million in fiscal 2027, nearly half of which would be distributed to funds for healthy school meals and child care scholarships. Most of the remaining portion would go to the state’s general fund, though a new amendment could provide a health equity fund with about $15 million. ...  Opponents, however, argued that the proposed tax was anti-business and could prompt some Marylanders to drive to different jurisdictions to purchase sugary beverages instead. Sarah Price, vice president of communications and government affairs for the Maryland Retailers Alliance, said the sugary beverage distributor tax, as well as other bills up for deliberation by the legislature, don’t present Maryland as an “economically viable option for expansion.” “This bill would not only incentivize customers to leave the state to shop but also disincentivizes businesses from investing here when they know that they can make more and save more money by locating directly across the border in our neighboring states,” she said. Marshall Klein, president of Klein ShopRite of Maryland, which owns and operates nine grocery stores in Baltimore City, Baltimore County and Harford County, said Shetty’s legislation was not a soda bill — it’s a tax on people who don’t have other options. “This is a group of progressive legislators trying to get a revenue option and tell people what they should and what they shouldn’t drink and how they should and how they shouldn’t live,” he said. “And what that’s going to do is take money out of the mouths of these families and impact their ability to continue to shop and provide for their families by purchasing other healthy foods.”

State lawmakers are looking to put Mr. Trash Wheel on a diet by considering a bill that would add bottle deposits to single-serve containers. Consumers who return the bottles would get that money back. Supporters hope the bill will serve as an incentive to recycle so that fewer bottles end up in our waterways. According to the Container Recycling Institute, Marylanders buy 5.5 billion bottles each year, but only a quarter of the containers get recycled. The legislation considers the refundable deposit as an incentive to recycle. Less than 10% of that is being recycled. We think this bill will allow up to 75% of that to be recycled,” said Baltimore County Sen. Benjamin Brooks, D-District 10. The belly of Baltimore’s iconic Mr. Trash Wheel is often bursting with bottles. A giant metal rockfish sculpture is stuffed with some of the material Mr. Trash Wheel gobbles up. There are discarded plastic, glass and metal beverage containers — none of which was recycled. That’s the point of the Bottle Bill, which drew dozens of supporters Friday to a rally on Lawyers Mall. The Bottle Bill adds a 10-15 cent refundable deposit on beverage containers. Consumers pay the deposit upfront. But when they return the empty bottle to a store, reverse vending machine or drop-off point, they get the money back. “The goal is to get all this excess plastic out of our waste stream. And we are trying to create a mechanism for consumers to do that,” Brooks said. “It is to address a serious and complex problem, which is trash and pollution. So, we need a Bottle Bill,” said Chris Williams, with the Anacostia Watershed Society. According to bill supporters, four billion containers are tossed into the environment. “As a doctor, I am asking all of us to act now so we can safeguard our collective health,” said Dr. Elizabeth Ryznar, a psychiatrist. “We need to reduce the amount of plastics in our environment and we need to reduce the amount of plastics contaminating our soil and our water.” “Passing the bottle bill is not just an environmental imperative. It is not just a health imperative. It is a moral imperative,” said Bob Simon, with Maryland Catholics for Our Common Home. The bill calls for non-refunded money to go into a fund that provides recycling grants to help local jurisdictions develop recycling plans. The Maryland Retailers Association opposes the bill, calling it a regressive tax. The association said it saddles businesses with space limitations on returns and creates sanitation issues. Click here to review the article from WBAL .

JESSUP, Md. (February 14, 2025) — Comptroller Brooke E. Lierman Friday marked the kick-off of Shop Maryland Energy Weekend with a visit to the ABW Appliances showroom in Jessup, Maryland. Shop Maryland Energy, which begins at 12:01 a.m. on February 15, 2025, and runs through 11:59 p.m. on February 17, 2025, is an opportunity for Marylanders to buy qualifying energy-efficient appliances without paying the state’s 6% sales tax.  “If you are looking to purchase a new appliance, Shop Maryland Energy Weekend is an ideal time to make that big purchase to save upfront while also long-term savings on your energy bill and decreasing your impact on the environment. These benefits are valuable, especially as Marylanders are paying more for necessities, including gas and electricity,” Comptroller Lierman said . “This sales tax holiday is designed to encourage Marylanders to make the switch to more energy-efficient appliances. Each purchase brings us closer to reducing our environmental impact and reaching our climate goals.” Comptroller Lierman was joined by Ryan Simon, CEO of ABW Appliances, and Lori Kleppin, director of membership and external affairs for the Howard County Chamber of Commerce. During Shop Maryland Energy weekend some manufacturers, retailers, and utility companies may offer additional incentives for the purchase of qualifying products. “We appreciate the tax-free incentives provided by Shop Maryland Energy Weekend and the business it drives for Maryland businesses at this time of year,” Maryland Retailers Alliance President Cailey Locklair shared. “This is a winning proposition for customers, retailers, and the environment, and we are proud to support the Comptroller and Maryland businesses in this effort.” Eligible ENERGY STAR appliances include: air conditioners, washers and dryers, standard size refrigerators, furnaces, heat pumps, boilers, compact fluorescent light bulbs, dehumidifiers and programmable thermostats. Solar water heaters are tax-exempt year-round. To receive the ENERGY STAR label , a product must meet strict standards for energy efficiency set by the U.S. Environmental Protection Agency. The tax-free weekend for energy-efficient appliances began in 2011 and there are estimates Maryland loses $800,000 in direct sales and tax revenue on eligible purchases every year. Marylanders can learn more about Shop Maryland Energy Weekend by viewing the Frequently Asked Questions .