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On February 20, 2020, the Maryland House of Delegates introduced HB 1628, which would reduce the sales tax rate from 6% to 5% and expand the base to tax almost all services. If passed, the bill would take effect January 1, 2021. This bill is sponsored by key members of House leadership, including the House Majority Leader, the Chief Deputy Majority Whip, and the Chairs of the Ways and Means, Economic Matters, and Appropriations Committees. The bill is currently assigned to the House Rules and Executive Nominations Committee.
The Eversheds Sutherland SALT Team will continue to follow HB 1628, along with Maryland legislators’ attempts to tax digital goods and digital advertising services.