Release: Repeal the Computer Tax
Posted by Jeff Quinton on January 22, 2008The following is a periodic update e-mail sent by Delegate Eric Bromwell (D-Baltimore County) to his constituents in District 8.
Dear Constituent,
The purpose of this e-mail is to provide information on issues facing our community. I hope you will find the information useful. Please feel free to contact me if you have any questions, concerns or comments. I wish you well and as always, I look forward to your feedback.
Sincerely,
Eric M. Bromwell
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TO: THE PEOPLE OF LEGISLATIVE DISTRICT 8
REPEAL THE COMPUTER TAX
A major battle during the 2008 General Assembly session will be the growing effort to repeal the 6% sales tax imposed on the computer services industry during the special session. The tax applies to businesses that contract for computer services and only those individuals who seek help with their home computers from organizations, such as Best Buy’s “Geek Squad.”
As an elected representative who voted “NO” to every one of Governor O’Malley’s tax increases, I will strongly support the repeal of the computer tax. I have co-sponsored two bills to repeal the tax.
We are told that the annual $200 million in revenue raised by the tax will be paid mostly by businesses. I don’t believe that for one minute. I feel very strongly that this tax will be passed on to customers.
State Comptroller Peter Franchot has joined with the Maryland Chamber of Commerce, thousands of businesses and individuals calling for the tax repeal. I stand with those who will fight for the repeal of this tax, pushed through with great haste during the special session.
It should be emphasized that the law is so broadly drawn that it leaves it up to the Comptroller’s Office to figure out who and what should be taxed and how it can be administered and enforced. Pennsylvania and Florida passed similar laws, but repealed them because their enforcement proved to be an administrative nightmare.
The new law imposes a tax on business’s ability to stay competitive through use of computer programming and data processing. It’s anti-business, anti-economic growth and will ultimately pick the pockets of anyone who hits a computer key. Maryland should profit from the experience of those states which have repealed the tax on computer services.
Please do not hesitate to contact me on this or any other legislative issue of concern to you. As always, I encourage and welcome your input.
Comment by soccer dad
It’s not like there was any serious consideration given to whom taxes would be extended to. As Maryland Moment observed:
State Sen. Bobby Zirkin made a similar observation. The industries they picked were chosen because they hadn’t shown the proper respect to the legislature by failing to establish a lobbying presence in Annapolis.