Signing the Charles County Technology Council’s (CCTC) online anti-tax petition doesn’t seem as dramatic as boarding merchant ships in the dead of night to throw their cargo of tea overboard. However, the state’s new Tech Tax has Maryland small business owners just as upset as the citizens of Boston in December 1773.
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“As residents and business owners in the state of Maryland, we are not at all pleased with the vote in the recent special session to levy a ‘service tax’ on the Computer Service industry,” the petition states.
The petition’s 259 signers, to date, want the tax repealed before it decimates the State’s technology and small business sectors.
“Taxing computer services stifles the growth of Maryland’s knowledge-led economy, inhibits new tech business growth, and encourages the flight of tech businesses to neighboring states,” said Julie Coons, the Technology Council of Maryland’s Chief Executive Officer.
“This tax is the worst thing that came out of the session,” said CCTC President Mark Czajka summing up comments he’s heard around the tech sector. “A lot of our members are small businesses and that’s where the impact will be.” With this petition, the CCTC leads the rally round the Maryland Chamber of Commerce’s anti-tax battle cry.
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Who’s Doing the Damage?
According to recent media reports, Senate President Thomas V. Mike Miller Jr. (D-Calvert) sees the new 6% sales tax on computer services as a way to reap $200 million in budget income from business spending instead of the paychecks of blue-collar employees.
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Miller is quoted saying, “I’m not of a mood to repeal the computer tax.” Miller’s mood, however, will decimate the State’s approximately 443,000 small businesses. These businesses employ 47 percent of all Maryland workers.
According to CCTC Vice Chair and small business owner, Amy Eastburn-Gallo businesses like hers are frequently engaged on an emergency basis and the companies with the most competitive rates get the calls for service. Adding s
