The Senate Budget and Taxation Committee voted this afternoon to repeal the computer services sales tax. As an alternative, the committee:

• Increased the income tax rate for those earning more than $1 million a year to 6.25 percent for three years.
• Cut $50 million in transportation funding for five years.
• Directed the Governor to cut an additional $50 million before July 1, 2008.

The bill, SB 46, now moves to the Senate floor. The committee vote was 10-5.

Senators voting for the proposal included:

Ulysses Currie
James E. DeGrange, Sr.
Verna L. Jones
Edward J. Kasemeyer
Nancy J. King
Nathaniel J. McFadden
Donald F. Munson
Douglas J. J. Peters
James N. Robey
Robert A. (Bobby) Zirkin

Senators voting against the proposal included:

David R. Brinkley
George C. Edwards
Rona E. Kramer
Richard S. Madaleno, Jr.
J. Lowell Stoltzfus

Repealing the tech tax is a top priority for the Maryland Chamber. We are pleased that the repeal is moving forward, though this is not our preferred alternative.