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Small tech and defense contractors urge relief from Maryland’s 3% technology services tax
Summary
Small technology and defense contracting firms testified in favor of SB 600, which would exempt certain resold or affiliate‑transacted technology services from last year’s 3% tax, arguing the levy concentrated on a small set of companies is driving jobs and investment out of state.
Sen. Hester presented SB 600 to the Budget and Taxation Committee as a targeted fix to last year’s extension of a 3% tax to certain information‑technology services. The sponsor said the initial collections were concentrated: 1,596 companies remitted tax in the first quarter, but roughly 38 firms in the custom programming sector paid the majority of the revenue.
"The total number of companies who paid this tax were 1,596... they remitted a…
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