Are we surprised? No, but stay tuned. Len Lazarick, Staff reporter for MarylandReporter.com reports that Department of Legislative Services recommends legislators consider extending Maryland's sales and use tax to include services:
"The no-growth budget for next year that legislative leaders recommended Thursday, combined with a promise of no new taxes, might soon look like a relic of the good old days if a new report from the Department of Legislative Services proves accurate. In a section of a new 246-page study of the issues facing the legislative session that begins in three weeks, budget analyst David Juppe forecasts “structural deficits” of at least $2 billion in each of the next five years. ...
"The no-growth budget for next year that legislative leaders recommended Thursday, combined with a promise of no new taxes, might soon look like a relic of the good old days if a new report from the Department of Legislative Services proves accurate. In a section of a new 246-page study of the issues facing the legislative session that begins in three weeks, budget analyst David Juppe forecasts “structural deficits” of at least $2 billion in each of the next five years. ...
Juppe gives examples of potential tax or fee increases: 'expansion of the sales tax base to services, a more progressive restructuring of the personal income tax, repeal of tax credits or improved tax compliance.'”
As this past weekend's online holiday shopping broke retail records, one wonders when state revenue collectors will target online sales originating from their jurisdictions.
Read Lazarick's entire report here...
