A provision of the Governor’s Budget Reconciliation and Financing Act (BRFA) (SB 152/HB 87) is drawing increased scrutiny due to its potential impact on Maryland’s technology sector. Pages 33 to 42 of the bill would impose the state sales & use tax on the sale of “digital products.” It’s easy to initially assume that the new language only applies to the listed items of downloaded music, books and e-cards. However, a closer look makes it clear that the language is very expansive and would apply to a vast array of products that are downloaded electronically. Legislative staff has confirmed the expansive interpretation. The Comptroller’s staff told the House Ways & Means Committee last week that they need to look at the language more closely to determine its impact.
We will work to ensure that this issue does not become a repeat of the 2007 Tech Tax, which threatened to cripple Maryland’s technology businesses. For further information contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
About Ronald W. Wineholt