MARYLAND - The Maryland General Assembly is considering a bill that, while lowering the sales tax rate from 6 percent to 5 percent, could introduce new taxes on services.
Ray Daugherty, a restaurant owner in Ocean City, expressed his apprehensions.
"They're going to drop it a percentage on the sales tax, but they're going to try to make it up on other services."
He fears that while the bill proposes a decrease in sales tax, the expansion to tax services, which were previously exempt, could escalate operating costs for businesses like his.
Amy Thompson, the Executive Director for the Ocean City Chamber of Commerce, highlighted the potential impact on small businesses.
"Until this point, services haven't been taxed. And now, dealing with your accountant or other business support services could be subject to new taxes."
While the bill aims to reduce the general sales tax, thereby potentially increasing consumer retail spending, it introduces a tax on services, broadening the state's revenue sources. Proponents argue that the bill would generate significant revenue for Maryland, aiding state projects and fiscal stability.
The General Assembly is set to review the bill further, and decide whether or not to push the bill forward.