Maryland Chamber Vice President of Government Affairs Ron Wineholt provided testimony today in opposition to provisions of the Budget Reconciliation Act (SB1/ HB1) that would eliminate $31 million in annual grants to counties and repeal a 50 percent local personal property tax exemption for machinery or equipment that is used to generate electricity or steam for sale, or hot or chilled water for sale that is used to heat or cool a building. The bill would impose over $45 million in increased local taxes on electric generation plant effective July 1, 2008.

“Maryland residents get most of their electricity supply from Maryland-based electric generation plants,” Wineholt said. “After experiencing a 70 percent increase in electric rates over the past year, why would the General Assembly want to impose another $45 million in electric generation taxes that will be passed on to consumers.”

This legislation would serve as a significant disincentive for the construction of desperately needed new power generation in Maryland. It would also undermine the State credibility as a place to invest and do business. To read the Chamber’s complete position statement, click here.