Latest news with #MarylandHouseofDelegates
Technical.ly
31-03-2025
- Business
- Technical.ly
How should tech firms be taxed? Maryland is the latest test case
The sales tax got its start in the Great Depression. Short on revenue, the first US states launched the policy and process for collecting a percentage on products sold. Others followed: Maryland in the 1940s, Pennsylvania in the 1950s and Virginia in the 1960s. All started with only physical products. Two big trends over the last 50 years upended sales tax strategy. For one, in addition to products, we also buy and sell services (from haircuts to consulting), and we now spend about as much on both, per the Federal Reserve. Secondly, the internet and software challenged what we mean by products. Generations of policymakers have debated whether software providers should be taxed at the state and local levels. Most recently, as part of an agreement with Gov. Wes Moore, the Maryland House of Delegates passed a bill that would require certain business-service providers to pay a sales tax, timed with a $3 billion state budget shortfall. But this has happened before, in states around the country. Memorably, in Pennsylvania, an online sales tax was eventually introduced in the 2010s, but the state's 'tech tax' on digital services was avoided after organizing from Pennsylvania's two largest tech lobbying groups: the Pittsburgh Tech Council and PACT. Now, the Maryland Tech Council, which is part of the same national organization, may be following the same playbook. That playbook: Remind policymakers that tech businesses are easier to relocate than retailers, and argue that tech jobs are valuable to have in part because of their multiplier effects. These points are packaged with standard guidance: Tax what you want less of, and avoid taxing what you want more of. This was compelling in the 2010s. But has the argument lost its punch post-pandemic? A higher share of tech jobs are done away from office than nearly any other industry, including more international hiring, and about half of the newest crop of tech startups are fully remote, according to a recent analysis. With the end of the cheap-money era, many tech firms have retreated from public life — fewer are hosting and sponsoring the community events and do-goodery that chronicled back then. Post-pandemic, state and local governments are shifting to attracting and retaining people first, before companies. If tech firms are also less engaged in public life, and not necessarily hiring locally, why wouldn't they be expected to shoulder the burden of investing in the places they're a part of? It helps to benchmark across locations. Maryland, for example, is considered a high-tax state, per a comprehensive Tax Foundation assessment, though so are economically powerful states such as Massachusetts, California and New York. That's true when looking more narrowly at tech-related taxes too. For ease, let's put various 'tech taxes' into three categories: Online transactions of physical goods: Following the 2018 Supreme Court ruling in South Dakota v. Wayfair, Inc., most jurisdictions see ecommerce as no different than a physical retailer when it comes to sales tax (from Amazon to a small retailer). Online transactions of digital goods: Most states (41) tax digital products, and nearly half tax SaaS companies specifically. Purchases of digital services: This is the least defined category, and it includes the current Maryland example. States handle a range of services very differently: about half tax some business services, but fewer include software development. The term 'tech business' describes a wide range of companies: from loss-making software startups and experimental hardware companies to ecommerce and digital media companies to consulting firms and contract development shops. Once considered magical, they're all increasingly treated like other parts of the economy. The trend seems clear that after decades of uncertainty, these various tech categories are being treated more and more like the traditional economy: Individual transactions being taxed, in addition to any corporate tax that 40+ states impose. Tax consultants are advising ever more complicated strategies to combat this. Software and IT consulting firms, which sell digital services, are expected to generate net profit margins well over 10%, after relatively high salaries and few physical assets. More than any breakthrough invention, most business services firms sell their processes and people. High tax places like Maryland often have good public schools and other amenities that brainy people like. High taxes isn't the full criticism; Instead the question is whether taxes are too high relative to the services someone receives in return. Business services, like software and web development consultancies, won't likely drive many residents to move if they relocate. These companies will exist wherever the most talented people are. Worry more about population trends — that should be Maryland's bigger concern.
Washington Post
28-02-2025
- Politics
- Washington Post
Maryland House lawmakers reject education cuts proposed by Moore
Lawmakers in the Maryland House of Delegates on Friday moved legislation that strips all school funding cuts from a bill pushed by Gov. Wes Moore (D), potentially complicating the governor's efforts to deal with the state's long-term budget crisis. The bill is far from final passage, but the House's proposal marks the first counteroffer from lawmakers who have been reluctant to embrace about $80 million in cuts to state aid proposed by the governor to the landmark education reform law known as The Blueprint for Maryland's Future. The law, which went into effect in fiscal 2022, increases education funding by about $3.8 billion annually to improve Maryland schools.
Yahoo
21-02-2025
- Politics
- Yahoo
Maryland House passes legislation to allow condoms in school vending machines
BALTIMORE — To the chagrin of the Republican Party, the Maryland House of Delegates passed legislation Friday to repeal the prohibition of selling condoms in public school vending machines. 'Condoms for kiddies,' Del. Kathy Szeliga, a Baltimore County Republican, said before the bill passed. 'This goes too far.' Sponsored by Del. Nicole Williams, a Prince George's County Democrat, House Bill 380 would allow contraceptives to be sold in nursery school, preschool, elementary and high school vending machines. It also removes the misdemeanor criminal penalty of $1,000. The bill does not mandate that schools sell condoms or other contraceptive devices in their vending machines. Individual school systems would be responsible for making those decisions. 'It's a really simple bill. All it does is remove a criminal penalty,' Williams said on the House floor ahead of Friday's vote. 'It's not setting policy. It's not dictating to anyone what they should or should not do, or to any of our school systems. All we're doing is removing a misdemeanor from our criminal law article.' The bill passed on a vote of 89-41. It will now receive a hearing in the Senate chamber. The bill is supported by the Maryland Department of Health. In written testimony, Maryland Health Secretary Dr. Laura Herrera Scott said that research demonstrates that access to condoms in high schools does not instigate increased sexual activity among students but encourages their use among those who are already sexually active. 'Criminal penalties for providing evidence-based contraception create unnecessary barriers that threaten access to an essential public health resource in Maryland,' she wrote. 'These penalties perpetuate stigma around contraceptive use and hinder access.' Ahead of Friday's vote, Harford County Republican Del. Lauren Arikan was dismayed at the notion that condoms could be sold in places where young children gather to learn. She said the bill is 'the kind of stuff that makes swing states go red' and that it 'shocks the conscience.' 'Why in the world would someone in a preschool need a condom?' asked Arikan. 'People in every possible work of life — every job you can imagine — have sex. And do you know where those people go to get condoms and prophylactics of other types? They go to the CVS like everybody else.' 'Where do all of you go?' she said, motioning to her colleagues in the chamber. 'There's no vending machine condom things out here. Somehow you found them. It's a miracle.' ----------
Yahoo
19-02-2025
- Politics
- Yahoo
Frank S. Turner, first African American from Howard County to serve in the Maryland House of Delegates, dies
Frank S. Turner, the first African American from Howard County to serve in the Maryland House of Delegates who also taught business law at Morgan State University, died Feb. 14 at Howard County General Hospital. He was 70. His wife Kimberlee Carter Turner said he died 'of a combination of medical issues.' Born in Mount Pleasant, New York, he was the son of Frankie Lewis Turner, a police officer who served on the Raleigh, North Carolina, city council and Augusta Drinage, who kept the family home. Mr. Turner was a 1968 graduate of North Carolina College at Durham, now North Carolina Central University, and earned a law degree from the North Carolina Central University School of Law. His wife described him: 'Frank was quick-witted, funny and kind and was a loving husband and father.' Mr. Turner moved to Maryland and became a professor of business law and legal environment in the Earl G. Graves School of Business and Management at Morgan State University. He was on the faculty from 1974 to 2015 and was then named a professor emeritus. He also owned several small businesses, including a Dunkin' donut franchise. In 1986 he served as deputy campaign manager for Barbara A. Mikulski's initial run for the U.S. Senate. He was later her aide for small business. 'Frank had the ability to be soft spoken and to be outspoken at the same time,' said former Sen. Mikulski. 'I treasured our working relationship. He was a leader in civil rights and an advocate for people and for social justice. He knew everybody and was not shy about speaking the truth to power.' Mr. Turner was elected to the Maryland House of Delegates in 1994 and represented Howard County's 13th District. He left office in 2019. While in Annapolis, Mr. Turner worked on personnel oversight, education, economic development, juvenile justice and gaming. He also served as House Chair of the Howard County Delegation. Mr. Turner said he personally did not care for casino gambling, but on a legislative tour to Pennsylvania and Delaware, he observed numerous Maryland license plates. As a result, he reluctantly backed Maryland casino wagering. When Mr. Turner announced that he would not seek reelection, he said, 'I feel as though sometimes that I've probably done as much as I can do in this particular job. I feel a lot of satisfaction about what I've accomplished, but I also feel that for me there's another mountain out there that I need to climb, and I feel as though for the most part that I've climbed this mountain.' In 2014 the ballfields at Columbia's Blandair Park were dedicated in his name. 'Frank has been a longtime supporter of recreation and quality of life in Howard County,' the County Executive Ken Ulman said at the time in an article in The Baltimore Sun. 'This is a fitting tribute to someone who has dedicated his life to making Columbia a better place to live.' Gov. Larry Hogan named Mr. Turner to the Howard County Community College board in 2019. His appointment was reconfirmed by Gov. Wes Moore last year. News Obituaries | James R. Grieves, Baltimore's Center Stage architect, dies News Obituaries | John Latchford Beck, 'unofficial mayor of Ellicott City Main Street,' dies News Obituaries | Beverly Byron, former U.S. congresswoman representing Western Maryland, dies News Obituaries | Alma Elizabeth Meagher, family matriarch, dies News Obituaries | Beverly Byron, former U.S. congresswoman representing Western Maryland, dies 'In a long list of iconic community leaders who have committed their time, their knowledge, and their resources in service of Howard Community College and its students, few outpace the impact of Del. Turner,' said Daria J. Willis, Howard Community College president. 'His love for and his faith in this institution were apparent in his work, his conversation, his giving, and in his advocacy.' He was a donor to the Howard Community College Educational Foundation. In 2018 he received the Howard Community College Legacy of Service award. Mr. Turner was an avid basketball, baseball and football fan. He also played golf and basketball as an adult. A celebration of life will be held from 10 a.m. to 1:30 p.m. on March 16 at the Horowitz Center, Howard Community College, Campus Drive in Columbia. Survivors include his wife of 22 years, Kimberlee Carter Turner; five sons, Frank S. Turner II, of North Laurel, Terrence Turner, of Laurel, Brandon Harris, of Columbia, Travis Turner, of Columbia and Harold Cogdell, of Charlotte, North Carolina; two brothers, Francis Turner, of Columbia, and John Turner, of Columbia, South Carolina; a sister, Augusta Turner, of Raleigh, North Carolina; and three grandchildren. Have a news tip? Contact Jacques Kelly at and 410-332-6570.
