The Maryland budget conversations continue to make headlines as lawmakers seek solutions for the state's $3 billion budget deficit. Governor Wes Moore made it clear early on that he would not support a "broad" business-to-business service tax, and he furthermore announced nixing the sugary drinks tax, potentially removing significant revenue streams from consideration. According to FOX Baltimore, Governor Moore emphasized the necessity for productive discussions: "We are in great, strong communication."
Amidst the fiscal challenges, Senate President Bill Ferguson remains caught in the middle, having to navigate cautiously to ensure that it does not further complicate an already complex situation. He acknowledged the potential of a service-to-consumer tax being in play, as reported by FOX Baltimore. Ferguson spoke of the need for "a sustainable budget that people buy into" but has yet to divulge details on which services would be taxed under the new plan.
Meanwhile, the GOP expresses skepticism over whether the concept of service taxes has been wholly dismissed. In an interview, Senate Minority Leader Steve Hershey highlighted ambiguities in the Governor's language by pointing out, "I think we have to find out what the definition of broad is." The business community remains on edge, as Mary Kane, president and CEO of the Maryland Chamber of Commerce, emphasized the importance of Maryland remaining competitive for business investment and growth in a statement detailed by FOX Baltimore.
A service tax seems imminent despite the back and forth, as Senate President Ferguson confirmed that some services must be taxed to meet revenue needs. "It has to be, the revenue has to be accounted for," he stated, per WMAR2 News. With the legislative session nearing its conclusion, Ferguson expressed confidence in reaching a budget agreement before the final day, seeking to avoid the need for an extended session. House Republicans, like Delegate Jason Buckel, argue that the state's economy could not "withstand that type of additional tax," according to an interview.
