Could a business-to-business service tax be on the horizon for Maryland?

MARYLAND – The Salisbury Area Chamber of Commerce is speaking out about legislation that would expand Maryland’s sales and use tax.

The companion bills, House Bill 1554 and Senate Bill 1045, would impose a 2.5% sales and use tax on business-to-business services.

This could include services like accounting, landscaping, payroll, technology and legal services.

“So if you have a business, a dry-cleaner and every year your accountant does your taxes for you, whatever that fee that your accountant charges you will be taxed 2.5%,” said Bill Chambers, President & CEO of the Salisbury Area Chamber of Commerce. “If you have landscaping done outside of your office, that landscaping service will be taxed. If you have services of a legal counsel or an attorney those services will be taxed.”

Chambers said legislation like this would make the state’s businesses even less competitive than they are now.

He also said this is going to force businesses to look to other states to move their operations.