Maryland Lawmakers In Special Session To Discuss Tax Hikes

Maryland state lawmakers are currently convening in Annapolis to deliberate Gov. Martin O’Malley’s proposal to solve the state’s projected $1.7 billion budget deficit. The proposal includes a number of tax hikes, including raising sales tax from five percent to six percent and expanding it to cover services from tanning salons, health clubs, massage businesses and real estate property management to generate $2 billion in extra tax revenue.

The governor called this assembly, which began Oct. 29, because acting in a special session will allow the state to start collecting new revenues on Jan. 1, six months earlier than if action were deferred until the regular 90-day general assembly session slotted to begin in January.

O’Malley’s proposal also calls for a tax increase on personal income, corporate income, vehicle-titling, gasoline and cigarettes. Property taxes, however, would be decreased.

Many Marylanders are concerned about the tax increase, including tanning salon owners and operators who feel that their business would be negatively affected by the projected sales tax on services.

“Increasing taxes by $2 billion in Maryland is going to hurt small businesses, especially if the business is providing non-essential personal services that will cost six percent more overnight,” says Jim Wint, president of Electric Beach Tanning in Odenton, Md, which he owns with his wife, Gwen. “You might get a small break on property taxes but that won't cover the increased taxes that you will pay everywhere else.”

Those in opposition to the governor’s proposal can make their views heard by contacting their district senator and delegate, as well as all of the senators on the Budget & Taxation Committee and all of the delegates on the Ways & Means Committee while the special session is convening.

Wint also says that anyone who has questions or concerns regarding the tax increases, or needs assistance in contacting Maryland lawmakers, may e-mail him at electricbeach@verizon.net.