Maryland's small business landscape is facing a pivotal moment. Two legislative bills have emerged, proposing a 2.5% sales tax, on essential business-to-business services–on state and federal levels. This legislation directly impacts the operational costs of countless businesses, potentially adding significant financial burdens.
Understanding the nuances of HB 1554, and its companion Senate Bill 1045, is crucial for every Maryland business owner–regardless of your industry.
Understanding the Proposed Bills:
Both HB 1554 and SB 1045 aim to:
- Introduce additional Sales Tax on Business Services: The bills propose applying a 2.5% sales tax on services one business provides to another.
- Specifically, the bills will further tax those in accounting, IT support, consulting, and HR – services many businesses rely on.
Concerns from Maryland Small Business Owners
- Local business owners are concerned that this could increase their expenses, especially for smaller businesses.
- Some MD-based businesses are worried about losing customers, since similar businesses in neighboring states are not required to pay the same proposed taxes.
What you can do:
- Take some time to learn more about HB 1554 and SB 1045.
- Consider how these changes might impact your business's day-to-day operations and bottom-line.
Thank you to our partners at the Harford County Chamber of Commerce for following this legislation closely!
We encourage you to stay informed and engaged as these bills move through the legislative process.
