Maryland Lawmakers Abandon “Much-Maligned” Proposal to Expand Sales Tax to Professional Services, Including Digital Advertising

The “much-maligned” proposal to expand Maryland’s sales tax to professional services was defeated by state lawmakers, reports The Baltimore Sun.

The Sun’s post stated that a House of Delegates subcommittee that reviews tax changes rejected the sales tax bill on a unanimous, bipartisan vote.

The subcommittee’s rejection means the bill won’t advance further in the legislative process.

According to The Sun, the proposal would have dropped the sales tax rate from 6% to 5%, “and applied it to a range of professional services from architects and attorneys to lobbyists and landscapers.”

The proposal also included a tax on digital advertising, applying the sales tax to digital media such as e-books and streaming services, increasing the tobacco tax, eliminating “loopholes” for corporate taxpayers, and eliminating some business subsidies.

More here.