MainBrain Blog

Below is a copy of the letter we wrote to local Chamber of Commerce members in regards to the sales tax on computer services in Maryland:

In a November special session, the General Assembly approved raising the state sales tax from 5 percent to 6 percent and expanded it to cover computer services including data storage, disaster recovery, hardware and software installation and technical support. If not repealed, this tax will take effect in July and will put many Maryland businesses at a severe disadvantage. Not only will this harm Maryland’s burgeoning technology sector, but it will have an effect on all businesses that rely on these services, most likely creating inflation by driving up prices down the line.

Many small businesses will be unable to absorb the 6 percent tax and will use fewer services. This will ultimately hurt these businesses when they are unable to compete with companies from out of state who can still afford to properly maintain their technology infrastructures. Larger companies will be able to stop contracting for certain computer services and instead perform the work in-house. Companies with locations in other areas will avoid the tax entirely by having their non-Maryland offices hire non-Maryland vendors, or worse yet, close their Maryland locations. These actions will decrease demand for in-state computer services providers and send higher-paying technology jobs to other states, or even other countries.

By taxing technology services the state of Maryland is one step closer to taxing all services. I urge each and every one of you contact your legislators and let them know how you feel about this important matter. If you are unsure of who to contact or what to write you can visit http://www.fightthetechtax.com and click on the “Take Action” link. Here you will find a sample letter to email, and a link to a website where you can find out who your elected officials are.

I thank you in advance for your support in this matter.

Sincerely,

Chris Isham, Account Manager

MainBrain

As a business start up in Maryland providing computer and PC networking services, the issue of taxation on computer services has been on our radar for a while. Last week, the tax was approved and will take effect as of July, 2008. What does this mean for business that provide computer services? How will they adapt? Is a 6% sales tax fair or will it discourage computer service businesses from starting up in Maryland?

MainBrain’s founder, Bernard J. Bisciotti, said he was surprised by the effort to tax his services. He noted that since computer services companies do not have an active lobbying group like some other larger industries, it’s difficult for our voices to be heard before the state government. He went on to say:

“Our client is a smaller company and it is a growing business…They’re spending all they can afford. This tax will most certainly hurt small business and start ups across the board.”

Welcome to the home of our brand new website, MainBrain.com. We’re happy to announce that after careful planning, we’ve updated our website to include new content, an updated design, user-friendly navigation and a blog. We wanted our site to provide clarity about who we are, what we do and how you may contact us.

Simply put, we fix computers for businesses and individuals in home. We’ll troubleshoot any problem you may have with your computer, hardware, software or wireless network. To prevent your computers and network from slowing and hindering your businesses performance, we offer a Managed Network Services plan. For a low monthly fee, we’ll keep your computers running at their peak with diagnostic service, hardware consultation, tech support, remote monitoring and more! Visit our Business Services section for more details.

Our blog is not only for our clients, but for anyone who is looking for information on how to take care of minor computer issues and optimize performance. We’ll be featuring weekly tips as well as company news - so check back soon for updates!