Sales and Use Tax - Rate Reduction and Services

Position: Support Maryland Chamber of Commerce Opposition

Action Requested: Contact your representative or submit a testimony

This legislation, titled “Sales and Use Tax – Rate Reduction and Services,” is a misguided attempt to fund critical priorities through a massive $2.9 billion tax increase on Maryland residents and businesses.

While HB1515 proposes lowering the state sales tax rate from 6% to 5%, it would simultaneously expand the sales tax to a wide variety of everyday services that have not been taxed before in Maryland, including, but not limited to:

• Accounting and financial services
• Child care services
• Legal and appraisal services
• Real estate services
• Professional engineering services 
• Shipping and delivery services
• Transportation, towing, parking and automotive services

• Dry cleaning and laundry services
• Home repair, cleaning, improvement services
• Salon and barber shop services
• Veterinary and pet grooming services
• Advertising, printing, media streaming services

We ask that our members join the Maryland Society of Professional Engineers (MDSPE) as we stand in alignment with the Chamber of Commerce in opposition to HB1515. Recognizing the adverse impact this legislation would have on the economic landscape, including the engineering sector. The bill's proposed taxation on vital engineering-related services would have detrimental effects on our members' businesses.

We ask that you, as a Licensed Professional Engineer, contact your local representative to oppose this bill.

Click below to access more information from HB1628 submitted in 2020, to track current House Bill 1515, and/or to submit a testimony.