As of Monday morning, legislators agreed to levy a 6% tax rate on “computer support services, data center support, custom programming, consulting and disaster recovery services.”
I know, that’s not news to you.
What is, is this: the state’s IT industry (along with small local businesses and workers) is angrily asking, “What gives?”
After all, “The IT industry is … helping to maintain the competitiveness of Maryland’s businesses.” So says Roger Cochetti, a director at the Computing Technology Industry Association.
Roger keeps going, telling InformationWeek:
“Just at the time that most cities, states, provinces, and countries around the world are encouraging the computer industry to locate there, the Maryland Assembly and Governor chose to discourage the computer industry from locating and providing services in the ‘Free State,” he said.
Cochetti said the tax could encourage Maryland IT users to outsource computer services…. He called the move one of the “least informed and most harmful actions ever undertaken by the Maryland State government.”
Do you think that more companies will keep IT in-house to avoid paying these taxes to local outside vendors? Or outsource operations? Would you?
-JACKIE SAUTER, Multimedia Editor