Maryland Comptroller Peter Franchot sent a letter to House Speaker Michael Busch urging the House to reject the sales tax expansion to computer services.

“While I am frustrated by the seemingly random and arbitrary manner in which these industries have been targeted for taxation, I am particularly worried about the inclusion of computer services in this bill,” Franchot said. “My concerns are twofold. First, there are numerous challenges related to the implementation of this measure, beginning with the obvious need for refinement of the term “computer service.” It is also imperative that we exercise the due diligence necessary to inform affected businesses of the new tax laws, and to ensure that they are accordingly registered and compliant. As you may be aware, Pennsylvania and Florida enacted a sales tax on computer services, only to repeal them at a later date.”

To view the complete letter, click here.

The Maryland Chamber appreciates Comptroller Franchot for pointing out the difficulty of implementing this sales tax expansion, and also for pointing out that impacted businesses did not have an adequate opportunity to voice their opposition.

If the expansion of the sales tax to computer services impacts your business, contact your legislators today!