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Editorial: Mystery Tax
2007-12-26 17:08:00
The Capital ran the following editorial on December 21: Mystery tax PERHAPS IT’S no surprise that a coalition, Ax the Tech Tax, has already formed to advocate repeal of the new sales tax on the computer services industry - a levy hastily passed by the General Assembly in last month’s special session. What is surprising is that the group has the backing of Comptroller Peter Franchot - Maryland’s chief tax-collector. Mr. Franchot says the experience of other states proves that this tax is difficult to define and enforce, and that by the time officials pinpoint something that can be taxed, those businesses have generally fled the state. Didn’t anyone ask Mr. Franchot about this before the legislature passed the tax? Perhaps not - the public hearing on this flew by so quickly that a lot of the affected business owners never found out about the proposal. The legislature resorted to this tax because it rejected the governor’s idea of clamping the sale...
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Miller "Not of a Mood" to Repeal Computer Services Sales Tax
2007-12-26 15:29:00
Sunday’s Washington Post featured an item from John Wagner indicating that Senate President Mike Miller is “not of a mood to repeal the computer services tax.” Here is the complete blurb: Opponents of New Tax May Have to Face Miller Advocates of repealing a new tax on computer services are likely to run into a powerful opponent in the coming session: Senate President Thomas V. Mike Miller Jr. (D-Calvert). The expansion of the sales tax to include computer services was one of the least-debated yet most controversial actions taken by the General Assembly in its special session that ended last month. Business groups are saying repeal of the tax, which is projected to generate $200 million a year in revenue, will be among their top priorities when lawmakers return Jan. 9. It will not be among Miller’s. “I’m not of a mood to repeal the computer tax,” he said in an interview this week. The majority of the revenue from the new tax is expect...
More About: Services , Computer , Sales , Mood

Maryland Chamber's 2008 Business Agenda
2007-12-17 22:24:00
The Maryland Chamber’s Board of Directors recently approved its 2008 Business Agenda . Priorities for the 2008 General Assembly session include: Repealing the hastily adopted sales tax on computer services. Revising the unprecedented new corporate reporting requirements, so that necessary information is collected but overly burdensome requirements are removed. Fighting to keep Maryland’s regulatory and tax structure competitive. Promoting affordable health insurance. Defending civil liability laws and supporting meaningful tort reform. Improving Maryland’s transportation system. Balancing environmental concerns and economic development needs. Supporting education funding. To view the complete Business Agenda, click here. For a printable pdf, click here.

Computer Services Sales Tax News Links
2007-12-10 19:50:00
Here are a couple recent articles and editorials about Maryland’s computer services sales tax. Computer Services Firms Want Sales Tax Repealed The Washington Post Repeal sought for computer tax Baltimore Sun Editorial: Repeal sales tax on computer services The Baltimore Examiner Editorial: Tax and Run The Washington Post
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The Latest on the Computer Services Sales Tax
2007-12-07 20:02:00
Today’s Gazette of Politics and Business features a story detailing what some lawmakers are saying about the recently enacted sales tax on computer services. Read the full story here. Sen. Robert J. Garagiola (D-Dist. 15) said, “I think we should repeal it outright.” Sen. Roma Kramer (D-Dist. 14) said, “I think it needs to be looked at, and it needs to be reconciled. I am hearing from businesses everywhere that if we had been able to have a full hearing on the bill, we would have heard how detrimental this tax would be.” Sen. Jim Brochin (D-Dist. 42) said, ”There is a quiet debate within the majority party. There’s a belief the legislature went too far. What we did to the computer services sector is ridiculous. It needs to be repealed.” The Maryland Chamber opposed this tech tax from the moment it was hastily inserted into the Senate tax bill without a public hearing. Computer service companies were not given sufficient notice nor ...
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2008 U.S. Chamber Small Business of the Year Award
2007-12-06 23:20:00
The U.S. Chamber of Commerce is looking for outstanding small businesses. Every year, the U.S. Chamber honors the accomplishments of the small business community with the Small Business of the Year Award . The selection committee reviews hundreds of applications in search of those organizations demonstrating the true spirit of enterprise. From these applications, the committee arrives at seven regional finalists who exhibit true customer service, a commitment to community involvement, exceptional staff development and benefits, and high financial performance. All finalists are recognized at the America’s Small Business Summit Gala Dinner and one will go on to be named the 2008 Small Business of the Year. Applicants will be evaluated on the following: Financial performance and business history Staff training and motivation Community Involvement Community Service Business plan or strategy for growth Nominations must be postmarked by February 8, 2008. Learn more here.

Do You Have Questions About the Computer Services Sales Tax?
2007-12-04 22:56:00
Maryland Chamber State Taxation Consultant Karen Syrylo, CPA met today with Deputy Comptroller Linda Tanton to discuss the computer services sales tax. The Maryland Chamber has made repealing the new tax a priority for the 2008 session. We will, however, continue to monitor its status as the comptroller’s office begins to draft the regulations over the course of the next few months. The new tax takes effect July 2008. Tanton said they want to be cautious as they draft the new regs. They understand that computer service transactions are complex, and that Maryland businesses have questions regarding the new law. As they move forward, the Comptroller’s office has asked the Maryland Chamber to collect questions from impacted business. Send your questions to techtaxquestions@mdchamber.org. We’ll work with the comptroller’s office to get answers. Keep in mind that many of the tax laws passed during the special session take effect on January 1. The comptrol...
More About: Services , Questions , Computer , Sales

Health Care Commission Offers Free Consumer Guide
2007-12-04 19:44:00
The Maryland Health Care Commission (MHCC) recently released its 11th annual Measuring the Quality of Maryland HMOs and POS Plans: 2007/2008 Performance Report. You can download the entire report here. The report rates the seven Maryland HMO/POS health plan providers, Aetna, CareFirst BlueChoice, CIGNA, Coventry Health Care , Inc., Kaiser Permanente, M.D. Individual Practice Associates (M.D. IPA) and OCI, in overall service delivery and in individual service categories such as preventative care, chronic care, and behavioral health care. The report is based on information from member medical records and health plan members’ responses to an independent survey relaying their opinions about the care they received while enrolled in the plans. New measurement information added to this year’s report rates the health plans in five additional categories: consumer engagement, preventive care, disease management, prescription management, and behavioral health care. This informat...
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Chamber to Discuss Computer Service Tax on MPT Next Week
2007-11-30 15:35:00
Tune in to MPT’s Your Money & Business program Thursday, December 6 at 7:30 p.m. on MPT to learn more about the recently passed sales tax expansion to computer services and what the Maryland Chamber is doing about it. The Show’s host Jeff Salkin will be joined by Maryland Chamber Vice President of Government Affairs Ron Wineholt and Allan Cohen, CPA, Managing Partner of Naden/Lean, LLC and Director of Next Level Technology. The Maryland Chamber will seek to repeal the computer services tax before it takes effect July 1, 2008. Maryland is a small business state. Expanding the sales tax to professional services hurts these small and growing companies the most. Large companies hire employees to perform many of the services outlined in the bill. Small businesses are more likely to hire outside companies to perform these services, and therefore would be more likely to pay the proposed sales tax. Computer service companies did not have an adequate opportunity to oppo...
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Maryland's Computer Service Tax Includes Web Design
2007-11-30 15:16:00
I talked with a few technology companies yesterday and they asked if web design services were a part of the recently enacted legislation expanding the sales tax to computer services. The answer is yes. While the bill was being debated on the House floor, Del. Jeannie Haddaway (R-Dist. 37B) asked that question. “Looking at the provisions that are included in the tax, I see some language about programming,” Haddaway said. “So I’m wondering about web designers. Are they in or are they out?” House Minority Leader Del. Kumar Barve (D-Dist. 17) responded, “They’re in.” If you want to listen to more of the give and take from the floor debate, click here to access the General Assembly’s proceedings archive. Go to the House proceedings drop down menu on the right-hand side of the page. In the drop down menu, select “Sunday, November 18. 2007 Session # 3” and press select. You must have real player installed on your compute...
More About: Web Design , Design , Computer , Service

January 17: Business Day in Annapolis
2007-11-26 16:18:00
Mark your calendars. Business Day in Annapolis will be held on January 17 at the Loews Annapolis Hotel. Invited speakers include: Governor Martin O’Malley Sen. Thomas V. Mike Miller, President of the Maryland Senate Del. Michael E. Busch, Speaker of the Maryland House of Delegates Sen. David R. Brinkley, Senate Minority Leader Del. Anthony J. O’Donnell, House Minority Leader This event is a great opportunity to interact with your legislators and hundreds of other business leaders from across the state. For more information, or to register, click here.

How They Voted: Sales Tax Expansion to Computer Services
2007-11-20 20:39:00
During the House floor debate on the tax bill that was signed into law yesterday (SB 2), Del. Jeannie Haddaway (R-Dist. 37) introduced an amendment to remove the language expanding the sales tax to computer services from the bill. The amendment failed, but we wanted to ensure that you know how your delegates voted. You can access the vote information here. The Maryland Chamber opposed the sales tax expansion to computer services. Legislators who voted “yea” supported the Maryland Chamber position. We’ve also added the vote to our key vote list. See how your legislators voted here.
More About: Services , Computer , Sales , Expansion

Special Session Results in $800 Million in New Business Taxes
2007-11-19 20:41:00
The General Assembly concluded its 3 week special session today by enacting $1.4 billion in new taxes, $400 million in possible future state budget reductions, and authorizing slots at up to 5 locations, if approved at referendum by the voters in November of 2008. The share of new taxes paid by Maryland businesses will exceed $800 million. The final package of 6 bills differs significantly from the Governor’s original proposals, but should resolve the projected state general fund structural deficit and pump over $400 million annually into state transportation projects. See a detailed summary of the package prepared by the Department of Legislative Services here. Corporate Taxes The corporate income tax rate would increase from 7% to 8.25% effective for taxable years beginning after December 31, 2007. Although combined reporting was defeated, a 17-member Maryland Business Tax Reform Commission will study changes to the state’s business taxes over the next 4 years. T...
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Summary of Special Session Legislation
2007-11-19 16:28:00
The special session is over. The Maryland Chamber will post more details and analysis of the new tax laws later today. The Department of Legislative Services has posted a great summary of the final tax, slots and transportation bills here (pdf). The legislation will take effect January 1, 2008. The new laws will: Establish new individual income tax brackets and rates, including new 5 percent, 5.25 percent and 5.5 percent rates for individuals making more than $150,000 per year and joint filers making more than $200,000 per year. Increase the corporate income tax rate from 7 percent to 8.75 percent. Increase the sales tax rate from 5 percent to 6 percent. Expand the sales tax to include computer services Impose recordation and transfer taxes on the transfer of controlling interest in certain business entities that own real estate in Maryland. Increase the vehicle titling tax from 5 percent to 6 percent. Establish a business tax reform commission. The language establishing the co...
More About: Special , Legislation , Summary

Buck Featured in Corridor Inc.
2007-09-17 19:56:00
Maryland Chamber Chairman Betty Buck is featured in this month’s edition of Corridor Inc. Buck, President of Buck Distributing Company, Inc., has grown the company her father started more than 60 years ago into one of the largest Miller Brewing Distributors in the Mid-Atlantic region. She’s an outstanding business leader and the first woman to Chair the Maryland Chamber. Read the full story here.
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Maryland Corporate Tax Facts
2007-09-11 19:20:00
Recent news accounts and editorials have repeated the claim that only half of large corporations pay corporate taxes to the State of Maryland . A recent commentary by two State Senators even stated that large companies use state services but “give nothing back to the state.” The Chamber would like to set the record straight. We’ve submitted an op-ed to the Baltimore Sun. Here are a few facts courtesy of Maryland Chamber State Taxation Consultant Karen Syrylo, CPA. -The Report: The recent hysteria about business taxes can be traced back to the misinterpretation and misuse of summary data on corporate tax payments issued by the State Comptroller’s Office. The data lists how many of the largest employer payroll tax accounts also had a corporate income tax payment made by that entity. It doesn’t list all companies, or all large companies, but only the payroll tax paying portion of a business. -Loopholes in the Report: Disclaimers included with the cur...
More About: Facts , Corporate , Rate

Living Wage Regulations Burdensome
2007-09-06 20:58:00
If your business has a contract for services with the State for over $100,000, you’ve got a problem. Regulations to be published September 14 in the Maryland Register will impose burdensome reporting and compliance standards for businesses awarded state service contracts after October 1, 2007. Maryland Chamber staff obtained an advance copy of the regulations, which show how the State Department of Labor, Licensing and Regulation (DLLR) will administer the new Living Wage law. The hot button issues are: Wage Reporting - The regulations will require every employer with a State service contract of over $100,000 to file with the State Commissioner of Labor and Industry within 14 days after the end of each payroll period a complete copy of the employer’s and each subcontractor’s payroll records, including each employee’s name, Social Security number, address, weekly wages and hours, rate of pay, health insurance deduction (if any), deferred compensation dedu...
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Business Policy Conference Agenda Released
2007-09-05 14:03:00
We’ve posted the complete Business Policy Conference agenda online here. To date, confirmed speakers include: Maryland Attorney General Douglas F. Gansler Senate President Thomas V. Mike Miller, Jr. (D-Dist. 27) House Speaker Michael E. Busch (D-Dist. 30) Sen. Ulysses Currie (D-Dist. 25), Chairman, Senate Budget & Taxation Committee Sen. Rob Garagiola (D-Dist. 15), Chairman of the Senate Finance Committee’s Health Subcommittee Senate Minority Leader David R. Brinkley (R-Dist. 4) Sen. E.J. Pipkin (R-Dist. 36) Del. John L. Bohanan, Jr. (D-Dist. 29B), Chairman, Commission to Develop the Maryland Model for Funding Higher Education Del. Susan Lee (D-Dist. 16), Co-Chair, Task Force to Study Identity Theft To view the complete agenda, click here.
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Higher Education Funding Commission Wants 2008 Action
2007-08-29 16:25:00
The Commission to Develop the Maryland Model for Funding Higher Education will likely push for legislation next session to phase-in increased funding for higher education institutions. At its August 27th meeting, Commission members acknowledged that they will need to extend some of their work to next year. However, many members noted that far reaching budget decisions to resolve the state’s deficit would be locked in later this fall or in the 2008 legislative session. Therefore, they pressed the Commission to come forward with recommendations in an interim report later this year. Look for the Commission to kick their activities into high gear the next few months to meet their new deadline. The next meeting of the group will be Monday, September 24th at 10:00 a.m. Contact Ron Wineholt for further information at rwineholt@mdchamber.org.
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Gansler Confirmed for Business Policy Conference
2007-08-28 15:01:00
Maryland Attorney General Douglas F. Gansler will participate in the Maryland Chamber’s Business Policy Conference as a panelist during a session on Maryland’s new security breach law. The panel, entitled Security Breach: What You Don’t Know Can Hurt You, will take place on Wednesday, November 14 at 3:45 p.m. The conference will be held November 14 and 15 at the Hyatt Regency in Cambridge. A complete agenda will be available later this week. For more information, click here.
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Miller and Busch Confirmed for Business Policy Conference
2007-08-24 15:26:00
Senate President Thomas V. Mike Miller , Jr. and House Speaker Michael E. Busch will provide a 2008 legislative preview during the Maryland Chamber’s Business Policy Conference . Both speakers are confirmed. This year’s conference is being held on November 14-15 at the Hyatt Regency Chesapeake Bay Resort in Cambridge. Miller and Busch will speak during the breakfast session on March 15, at approximately 8:30 a.m. I hope to have a complete agenda available on the website next week. For more information about the conference, click here.

State Privacy Data Not Secure
2007-08-23 21:44:00
Personal information of Maryland residents collected by state agencies lacks adequate security, based on testimony offered yesterday to the State Task Force to Study Identity Theft. Many state agencies collect Social Security numbers, credit card numbers, tax information, and other personal information of Maryland residents in order to administer state or federal programs. However, testimony by representatives of eight major state agencies showed little consistency in measures to secure residents’ personal information, lax central oversight of agency procedures, and weak penalties for state employees who improperly use personal information. The Maryland Chamber had unsuccessfully requested state legislators to include state and local governments in security breach protection legislation that was enacted in 2007, citing government agencies as a frequent source of privacy data breaches. Future hearings of the Task Force may build momentum for stricter oversight of state agency...
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Butler Capital Appoints Brett Butler Vice President
2007-08-22 22:52:00
Butler Capital Corporation announced last week that veteran manager Brett Butler has been promoted to vice president of the Hunt Valley, Md.-based business lender. Serving in dual roles as director of the Lessor & Broker Finance Division and director of the Portfolio Management Division, he becomes one of four individuals to currently hold the vice president title at Butler Capital. A member of Butler Capital’s management team since mid-2003, Butler is responsible for the company’s customer service and collections operations. On the sales side of the company, he directs the work of the Lessor & Broker team in providing funding to U.S. loan and lease brokers.
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Report Summarizes State Health Reform Initiatives
2007-08-22 22:36:00
As studies continue in Maryland regarding the next steps for health care reform, many will look to actions taken by other states. A recent report by the National Governor’s Association provides a good recap of state health reform initiatives around the country. You can view the complete report here: Leading the Way-State Health Reform Initiatives (pdf) Contact Ron Wineholt for further information at rwineholt@mdchamber.org .
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Business Cards: "The Leisure Suits of the Marketing the World"
2007-08-21 20:29:00
Author and marketing guru Seth Godin has a great blog post today outlining his thoughts on the top mistakes in business card design. “In an era where no one dresses up anymore, they [business cards] give you a chance to position yourself, to represent who you are and what you do in a three cent piece of paper,” he said. “And yet… almost all business cards are terrible. They are the leisure suits of the marketing the world, the place where bad design not just lives, but thrives.” In a nutshell, he says: Don’t print your own business cards. Don’t use big type for contact information. Stay away from full color cards with big pictures. Stay away from the margins. White space and and margins are important. Read his full post here.
More About: Marketing , Business , World , Leisure , The World

Environment Committee to Meet with DNR Secretary
2007-08-20 14:46:00
The Maryland Chamber’s Environment Committee will meet with Maryland Department of Natural Resources Secretary John Griffin and his senior staff on September 5 at DNR headquarters in Annapolis. If you’d like to attend, contact Heather Hamilton at hhamilton@mdchamber.org by August 30.
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King Picked for Hogan's Vacant Senate Seat
2007-08-15 17:44:00
The Gazette reports that the Montgomery County Democratic Central Committee has nominated Del. Nancy J. King (D-Dist. 39) to fill the Senate seat vacated by Sen. P.J. Hogan , who left the Senate to join the University System of Maryland as Associate Vice Chancellor for Government Relations. Governor O’Malley now has 15 days to appoint her to the seat. The Central Committee must know select a successor to King in the House of Delegates and also a successor to Del. Marilyn Goldwater (D-Dist. 16), who resigned last week.
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Report Makes the Case for Slots
2007-08-15 17:38:00
Today’s Baltimore Sun features a story on an O’Malley Administration report that makes the case for slots. “Tens of thousands of Marylanders are voting with their feet and traveling to West Virginia and Delaware to play slots,” Labor, Licensing and Regulation Secretary Thomas E. Perez wrote in his report to Gov. Martin O’Malley. “By not having slots, Maryland has already left hundreds of millions of dollars in potential general fund revenue on the table.” Sounds an awful lot like what the Maryland Chamber Board of Directors said in 2002. Read the full story here. Update: For the complete report, click here.
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Seth Godin's Encyclopedia of Business Clichés
2007-08-14 20:47:00
Seth Godin launched a list of business clichés, the Encyclopedia of Business Clichés. Browse the list and add your own. “It’s easy to make fun of business clichés,” he said. “Tempting to string a bunch together in a blog post or a memo and show how clever you are. Harder, though, to avoid using them.” At the end of the day, I’m glad he took the time to think outside the box and compile such a list. The bottom line is that it’s a real win-win for those of us looking to waste some time on the Web.
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