(ROCKVILLE, MD) March 11, 2008 The Tech Council of Maryland (TCM), the state's largest technology association with more than 500 members, announces its support of legislation that would enact a temporary income tax surcharge as an alternative to the current six percent Computer Services Sales Tax.
The alternative, SB 1004, would open the door for a repeal of the sales tax on computer services by replacing the revenue with a temporary increase in income tax rates for Marylanders who earn $750,000 to $1,000,000 and those earning $1,000,001 or more. In a letter to Governor Martin O'Malley, TCM endorsed the measure as a reasonable compromise in a difficult budgetary climate.
"TCM's absolute, top priority is repeal of the sales tax on computer services," said the letter from TCM CEO Julie Coons. "TCM commends your leadership, as well as leadership in the Senate, most notably Senate President Mike Miller and Senator Rob Garagiola, for proposing to repeal the onerous sales tax on computer services and offering a solution to ensure that Maryland's budget remains in balance."
The computer services sales tax has drawn widespread opposition since its enactment during the 2007 Special Legislative Session. TCM recently released a poll showing that an overwhelming majority of Marylanders thought the tax was bad for Maryland businesses. The poll, conducted by Gonzales Research & Marketing Strategies, found majority opposition that cuts across party lines: 54% of Democrats, 64% of Republicans and 62% of Independents.
TCM will host a rally in front of the State House in Annapolis, tomorrow, March 12 at 9:45 a.m., where an estimated crowd of 300 tech industry professionals will gather to call for repeal of the Computer Services Sales Tax.
ABOUT THE TECH COUNCIL OF MARYLAND, INC.
The Tech Council of Maryland (TCM) is the largest technology trade group serving the advanced technology and biotechnology communities of Maryland. TCM's mission is to advocate for the interests of the technology community, further the role of technology in the Maryland economy, and nurture an environment where technology companies can collaborate, grow and succeed. For more information, visit www.techcouncilmd.com.