[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6637644,"mediaKeyId","2580299-96c13f9afe41e63b36a79b873a20e11b","parentId",2580299,"title","Broad business-to-business sales tax draws widespread opposition at Senate Budget and Taxation hearing","audioSeconds",6836,"startMs",726000,"endMs",7562000,"viewUrl","/Search/View?dp=1&key=2580299-96c13f9afe41e63b36a79b873a20e11b&start=726&end=7562","thumbnailUrl","https://assets.pipeline.soar.com/2580299-96c13f9afe41e63b36a79b873a20e11b/thumbnail_726000.jpg","articleUrl","/articles/6637644/Maryland/Broad-business-to-business-sales-tax-draws-widespread-opposition-at-Senate-Budget-and-Taxation-hearing","mediaUrl","https://secure.pipeline.soar.com/6637644-8908cdc6ab6d3e8fccd809c48c53834d/orig.mp4?Expires=1771196708&Signature=L~Fv8aeHrkJ2jrtwk6YRZ2KybANZccNlfBDQH~9o144Q3qKA1-jGrEBsb9kQOYc~r-KLaQkuwEcxXruQaGQ~y9o95OMD9vnkbd9i9qkKO1TWsrMVf89oB8OtPMRn2hc7fQFdY--nows8AWNUOxsdbi8TSxz71lLVSLr5lSLzHon2IIfTsWvV0iy1h55L6TMLkkPfc-H8d5xarBLiYINuVefWl72hx719MnWtIMqr7Dynva04YkkID3p8J-3ooJxPO8d7cVw6F-7e-55Ysr7Oll6aZ8kUFTItiHw6qntAkVsJTTgN0H6HFm7T9Pu04n9--CAXNaU-WegmRVSOfjV70Q__&Key-Pair-Id=KUT5TJCACFTXG","author","Maryland General Assembly - Budget and Taxation","date","2025-03-12T22:53:49.617Z","article","Sen. Shelley Hettleman, sponsor of Senate Bill 1045, presented the bill to the Senate Budget and Taxation Committee as one of several revenue options to help close a large state general fund shortfall.

Hettleman said the proposal would impose a 2.5% sales-and-use tax on defined business-related services when both the provider and buyer are businesses, using NAICS codes to specify which services are taxed. She described the bill as part of broader tax-reform proposals and said it would generate substantial revenue: \"The bill before you today is 1 of the options, among others, that would help to address this shortfall,\" she said, and during the presentation cited projected revenues in the first years after enactment.

The hearing record is dominated by opposition testimony from scores of businesses and trade groups. Witnesses representing small businesses, hotels, construction firms, accountants, CPAs, trucking companies, home care and Medicaid providers, advertisers, technology firms, chambers of commerce and others warned the tax would be a tax on compliance and would cascade through the economy. Common concerns included:

- Competitive harm and business flight: Several witnesses said the tax would make Maryland less competitive with neighboring states, and encourage businesses to move work or headquarters out of state. \"If this bill passes and this were to be imposed as of July 1, all our service providers would start charging us 2.5% on top of whatever it is they're charging us,\" said Lauren Pearl of Under Armour of the effect on a Maryland-headquartered company.

- Disproportionate effect on small businesses: Multiple small-business owners and trade associations said firms that outsource accounting, payroll, IT, marketing and other services would have to absorb or pass along new costs. \"This bill is concerning because number 1, it will harm small businesses who tend to use outside accounting and tax services,\" said Skip Filatko, a CPA from Baltimore County.

- Pyramiding and administrative burden: Accountants and tax professionals warned the tax would be a tax on tax and create difficult sourcing and compliance rules. Rebecca Olson of the Maryland Association of CPAs said: \"This bill is a tax on compliance itself.\" Witnesses warned that firms with multiple NAICS codes, cross-border sales, or intra-company service arrangements would face complex recordkeeping.

- Impact on public services and Medicaid providers: Home-care and Medicaid providers said they could not pass the cost to payers and would have to absorb the expense or cut services. \"As a Medicaid provider, I'd like to remind you that we can't pass our costs along unless you'd like to vote us a rate increase,\" said Matt Allman, CEO of Homecentris Healthcare.

- Sector-specific concerns: Hotels, restaurants, and manufacturers said the tax would hit core operating inputs such as marketing, maintenance, HVAC and heavy-truck repairs; hotel witnesses estimated tens to hundreds of thousands of dollars in additional annual costs for multi-property operators.

Senators on the panel acknowledged the difficulty of the state budget picture and several invited witnesses to submit alternatives and suggestions. Committee members repeatedly described the choice as between larger revenue sources (income or sales taxes) and spending cuts; one senator noted that only income and sales taxes generate revenue at the scale needed to close the identified shortfall.

No final committee action appears in the hearing transcript provided. The sponsor and multiple industry groups said they were willing to continue work on the issue, while many witnesses urged rejection of the proposal in favor of other approaches such as targeted cuts, growth strategies, or a broader, studied approach to tax reform.","mediaType","Video","parentTitle","B&T Committee Session, 3/12/2025 #1","oneSentenceSummary","Sen. Shelley Hettleman presented a proposal to impose a 2.5% sales-and-use tax on defined business-to-business services, telling the Senate Budget and Taxation Committee the measure is one option to help close a multibillion-dollar general-fund shortfall.","taxTitle","Budget and Taxation Committee, SENATE, SENATE, Committees, Legislative, Maryland","taxId",15091,"location","Maryland","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6637649,"Bill would let competitively awarded Class B sports-wagering licenses relocate within same county, sponsor says",222,500000,722000,"/Search/View?dp=1&key=2580299-96c13f9afe41e63b36a79b873a20e11b&start=500&end=722","https://assets.pipeline.soar.com/2580299-96c13f9afe41e63b36a79b873a20e11b/thumbnail_500000.jpg","/articles/6637649/Maryland/Bill-would-let-competitively-awarded-Class-B-sports-wagering-licenses-relocate-within-same-county-sponsor-says","https://secure.pipeline.soar.com/6637649-d32fa41b2db492bd8310c51674359bbb/orig.mp4?Expires=1771196708&Signature=YI7tD8yoLharoe73wlGv8wxOOflIuzk16qX1i2EkJzhPAHQWIIrZhYCnURYDSTkJQQ2LlHM3rRCQ63rewBwJ1b0r7dfZut4uJ5Upb3BvzTNOx9YUZu2~E8UG2MmHf5kTU-cI4W~TeV0vVhmKSB9dXgVdkObR5mQeP3XDtMKpUzMSSB3rYglFIjSTISEKlqxu22xymX5HKeriEaPr2cod6mwdTSUC~MfoGksxkfLNKcYsUO7r4mQCwiiYT~kt~EAafMVzqi3haZj5bjkALv5fcyLx7KtCMwahb9rfcecZ1bPSCs-hvoO3hcVT8Wj259iA7wc4o96YS2Pcurbk7AMzwA__&Key-Pair-Id=KUT5TJCACFTXG","Sen. Shelley Hettleman, sponsor of Senate Bill 1000, told the Senate Budget and Taxation Committee the bill addresses a regulatory gap that prevents competitively conferred Class B sports-wagering licenses from relocating when a licensee moves within a jurisdiction.

Hettleman said the General Assembly authorized sports wagering after a 2020 constitutional amendment and created the Sports Wagering Application Review Commission (SWARC) to grant licenses; she said competitively conferred Class B licenses — typically held by some bars and restaurants — currently have no statutory path to relocate to a new location when the business moves. \"This bill ... aims to resolve this regulatory oversight by allowing a competitively conferred class b license holder to request license relocation from the state lottery and gaming control commission,\" Hettleman said.

Jason Weintraub, representing Kenton Gaming, told the committee his firm operates two retail sportsbooks and is seeking permission to move a Towson location to Pikesville; he said the bill would grant the Lottery and Gaming Control Commission the regulatory flexibility to consider such requests. Weintraub said the change would not allow relocation to a different county and that licensees must comply with existing radius restrictions set in law.

Committee members asked whether moves across county lines would be allowed; Hettleman and a witness responded that relocations would have to remain within the originating county. A small administrative amendment requested by the Lottery and Gaming Control Commission was described as forthcoming and acceptable to proponents. The transcript does not record a committee vote on the bill.","Sen. Shelley Hettleman told the Budget and Taxation Committee that Senate Bill 1000 would allow competitively awarded Class B sports-wagering licenses to request relocation within the same county through the state Lottery and Gaming Control Commission; proponents said the change fixes a statutory gap and would not permit moves between counties.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6637654,"Sen. Cheryl Kagan backs bill to register public art, limit copyright waivers",122,371000,493000,"/Search/View?dp=1&key=2580299-96c13f9afe41e63b36a79b873a20e11b&start=371&end=493","https://assets.pipeline.soar.com/2580299-96c13f9afe41e63b36a79b873a20e11b/thumbnail_371000.jpg","/articles/6637654/Maryland/Sen-Cheryl-Kagan-backs-bill-to-register-public-art-limit-copyright-waivers","https://secure.pipeline.soar.com/6637654-8150b31eabfcc34fd866e8303c926bba/orig.mp4?Expires=1771196708&Signature=Q3auNbJqjUvqrUSDNI5zsAZqW9Yrgdt~rX8EmGk-fouifjSViW1re9T0Z9fSZ1gl1GANXiA-MNch2~A~TanjJlBgeP9yX1dXPaySDL1rFweF276pqRIDa2GAzJCDOlm79N4Ygth0KlQCa1WqkrpA3O6OOeM24Zfl~saM-I5DV4soRk9y4zio-2gqTHQtMtYhv1OTUdn5bnEaeAbNb0BLWu2VlL1nm1kqXByIX3f5dRhQpE0cmQTht1CgYhHPquUJ0-~QhLpCgdyYVgw6zuA20RmWOJKM9bbQ~CrjydeDEeh4lg7Ajb2In5r1VaPRRFyKdFQufrkG2~a1~6rbXEBW~A__&Key-Pair-Id=KUT5TJCACFTXG","Sen. Cheryl Kagan, representing Gaithersburg and Rockville, told the Senate Budget and Taxation Committee the goal of Senate Bill 1006 is to strengthen protections for artists and to create an accessible registry of public art.

Kagan said the bill carries no fiscal note and already won broad approval in the House. “This bill has no fiscal note. Second, it already passed the house overwhelmingly,” she said.

Kagan described recent losses of large public works as part of the rationale for the bill. “In 2023, an enormous sculpture in Baltimore City disappeared 1 night,” she said, and added the bill (as amended by the House) would require public artworks to be registered with the Maryland State Arts Council with contact information for the artist so there would be recourse if pieces are removed. She also said the bill would limit instances where artists must waive their copyrights as a condition of commission, allowing waivers only in cases where incorporation into a permanent building or similar use makes a waiver appropriate.

The sponsor characterized the measure as noncontroversial and said she was unaware of organized opposition. The committee did not take a vote on the measure during the portion of the hearing in the transcript provided.

The bill drew no extended debate in the record presented and the sponsor ended her testimony by offering to answer questions.","Sen. Cheryl Kagan told the Senate Budget and Taxation Committee that Senate Bill 1006 would require state registration of public art and curb demands that artists waive copyrights to receive commissions. The sponsor said the bill has no fiscal note and passed the House overwhelmingly.","actionData","errors"]

Article not found

Broad business-to-business sales tax draws widespread opposition at Senate Budget and Taxation hearing

Bill would let competitively awarded Class B sports-wagering licenses relocate within same county, sponsor says

Sen. Cheryl Kagan backs bill to register public art, limit copyright waivers