GGCC joins with the MD Chamber of Commerce and other Chambers across the state in opposing the newly-proposed “tech tax.”
At a time when Maryland already ranks 46th in business tax climate and the third most expensive state to do business in, now is not the time to increase costs on small businesses.
From the MD Chamber of Commerce:
Last week, Governor Moore and General Assembly leaders announced a 3% tech tax on small businesses. This policy would be disastrous for Maryland’s economy, businesses and jobs, undermining our future as a tech hub and leader.
This tax will affect businesses offering OR using these types of essential services:
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- Cloud Storage & Hosting (NAICS 518): AWS, Google Drive, web hosting, data backup
- Information Services (NAICS 519): Online directories, digital content platforms, research databases
- IT & Computer Services (NAICS 5415): Software development, cybersecurity, IT consulting
- Software (NAICS 5132): Business applications, custom software, enterprise solutions
- The licensing of media or software rights and other intellectual property
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Maryland businesses offering or using these services will face higher costs.
This is Not Simply a “Tech Tax” — It Affects Every Maryland Business and Resident:
The effects of this proposed tax extend far beyond harming one of Maryland’s fastest growing sectors. In today’s interconnected economy, tech services are a fundamental component for businesses across all sectors.
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- Small businesses crushed: Every local shop that uses software, websites, IT support, or cloud services will face higher costs
- Jobs at risk: Employers facing sudden tax increases may freeze hiring or cut positions to manage new expenses
- Defense sector threatened: Critical defense contractors will struggle with increased costs, jeopardizing their competitiveness for federal contracts
- Main Street suffering: Family-owned businesses with thin margins will be hit hardest as essential tech services become more expensive
- Competitive disadvantage: While Virginia and other neighboring states attract businesses with incentives, Maryland risks pushing companies across its borders
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These higher costs won’t stay with businesses — they’ll be passed down to consumers. In a world where technology touches everything, from your work and child’s education to your healthcare, this tax could make essential digital services unaffordable for many Maryland families, widening the digital divide.
Stop the Tax Assault on Maryland Businesses. Act Now!
We need you to take action now and tell your legislators to vote NO on the job-killing tech tax before it is too late.