ANNAPOLIS, Md. — A tax proposal in Maryland aims to help cover funding for major education and transportation plans the state currently lacks the money for. It plans on doing this by decreasing the overall state sales tax while increasing the amount of services that can be taxed.
Lawmakers debated House Bill 1515 in Annapolis on Monday.
The bill would lower Maryland's sales tax from 6% to 5% while expanding the sales tax to ten categories including:
- Business Services
- Professional Services
- Information Services
- Travel Services
- Leisure and Recreation Services
- Building Maintenance Services
- Remediation and Waste Services
- Maintenance and Repair Services
- Personal Care Services
- Personal Services
Examples of these include car repairs, pet grooming, dry cleaning, and even funeral or cremation services.
It was introduced in Maryland's House of Delegates by House Majority Leader David Moon (D-Montgomery County) who called it "a bit of a conservation starter."
The bill is focused on prioritizing transportation and education in the state as projections show Maryland is billions short. The estimated impact of the bill is an additional $3 billion each year in revenue.
The bill faces many challenges in the Senate as well as from Gov. Wes Moore.
For a full list of proposed taxable services included in the bill, click here.
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