Maryland Tax Increase

November 22nd, 2007

Maryland Governor O’Malley led a charge to increase Maryland taxes:

Tax Old Rate New Rate Change
Sales Tax 5% 6% 20% increase
Highest Marginal Income Tax 4.75% 5.5% 15.8% increase
Corporate Income Tax 7% 8.25% 17.9% increase

Governor O’Malley’s proposed property tax decrease was rejected by Maryland legislators.

The Sales tax was also expanded to cover certain computer related services, including programming. I can see the traffic increasing on the American Legion bridge right now :)

Apparently, several other states (9) already apply sales tax to computer related services.

“The group of legislators agreed to revisit the issue in five years to determine what effects the [computer services] tax has had.”  So much for due diligence.

It feels good to be a Virginia resident these days :)

References:
Md. Lawmakers Approve Tax Package