Maryland to Charge Sales Tax on Computer Services

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.”