The Maryland General Assembly is considering (HB 1554/SB 1045) that would impose a new 2.5% sales tax on business-to-business services.  This tax, if implemented, would increase operational costs, reduce profitability, and create compliance challenges, adding to the cost of doing business. This will cascade through the supply chain, leading to higher prices for goods and services for Maryland consumers. In particular, it will disproportionately impact small businesses with tighter margins and discourage investment in the state, weakening Maryland’s business climate and making us less competitive. 

The tax, if enacted, will impact the following business sectors:

• Traffic engineering
• Environmental consulting (geotech, forest, land, air and water, building remediation)
• Pest control
• Landscaping
• Property maintenance (excluding cleaning of commercial or industrial buildings and security guards)
• Locksmiths, security system maintenance and repair
• HVAC repair and maintenance
• Hydraulic equipment repair and maintenance
• Heavy truck repair and maintenance
• Repair and maintenance of construction equipment and material handling equipment such as forklifts and conveyor belts
• Repair and maintenance of restaurant cooking and commercial refrigeration equipment

In addition, the tax proposal includes general business services such as:

• Accounting, payroll and bookkeeping
• IT, data processing and web hosting
• Office administrative support and management
• Employee and contractor placement
• Consulting
• Photography, design and printing
• Marketing and PR Market research
• Financial planning and tax preparation
• Economic consulting services

Lawmakers will hold bill hearings on WEDNESDAY, MARCH 12th at 1:00 p.m. in the House and 3:00 p.m. in the Senate. 

For more information, please contact your ABC chapter president:

• ABC Chesapeake Shores - Chris Garvey (cgarvey@abc-chesapeake.org)
• ABC Greater Baltimore - Mike Henderson (mhenderson@abcbaltimore.org)
• ABC Metro Washington - Dan Bond (dbond@abcmetrowashington.org)

Contact your legislator TODAY and tell them to oppose this new tax and protect Maryland's businesses and consumers, including our robust construction industry and its customers.