Maryland Seeks Carveouts on Tech Sales Tax to Avoid Job Loss

March 4, 2026, 9:45 AM UTC

Maryland lawmakers are considering legislation to spare business inputs from the state’s new 3% tax on data and information technology services, addressing a chief complaint from the business community over repeat taxation.

Sen. Katie Hester (D), the chamber’s deputy majority whip, introduced the measure, modeled after an existing state tax code carve-out for manufacturers. It comes as the less than one-year-old assessment spurs some companies to consider moving to nearby states, none of which have such a tax. The bill (SB 600) would wipe out about 37% of the revenue the Democrat-led state is projected to collect under ...

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