Legislative Report -- January 16, 2008

Maryland Chamber’s 2008 Business Agenda
The Maryland Chamber of Commerce will unveil its 2008 Business Agenda on January 17, during Business Day in Annapolis at the Loews Annapolis Hotel. The agenda focuses on promoting a completive business climate to ensure economic growth and job expansion. Priorities for the 2008 General Assembly session include:

• Repealing the 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.

Take Action: Urge Your Legislators to Repeal the Computer Services Sales Tax
Contact your legislators today and urge them to support the repeal of the computer services sales tax, enacted during the recent special session.

Effective July 1, 2008, Maryland's 6 percent sales tax will apply to computer services, including:

• Computer facilities management and operation.
• Custom programming.
• Computer system planning and design that integrate computer hardware, software, and communication technologies.
• Computer disaster recovery.
• Data processing, storage and recovery.
• Hardware or software installation, maintenance, and repair.
• To view enacted language, visit mdchamber.org/techtax.

“Innovative technologies fuel business growth and job creation,” said Kathy Snyder, President and CEO of the Maryland Chamber of Commerce. “Regardless of company size or industry sector, Maryland businesses rely on computer services. This tax will harm Maryland’s economic development goal of maintaining a high-tech knowledge economy and workforce.”

If we are going to succeed in repealing the computer services sales tax, we must ensure that legislators are hearing from impacted constituents. Call or email your legislators today! Tell them how the tax will negatively impact your business, your clients and your employees. Urge them to co-sponsor legislation to repeal the tax. Talking points and a sample letter are available at www.FightTheTechTax.com.

How Will the Computer Services Sales Tax Impact Your Business?
How will the computer services sales tax impact your business? As the Maryland Chamber works to repeal the tax before its July 1 effective date, your story can help us make our case.

• What computer services does your company provide or consume?
• How many people do you employ?
• How will this tax impact your bottom line or your ability to compete?
• Who are your clients?
• Will this tax cause you to consider altering your operations in any way?

We want to hear from you. Please consider emailing Will Burns at wburns@mdchamber.org with details about how the tax will impact your company, your clients and your employees.

New Corporate Reporting Requirements
Legislation was passed during the November 2007 special session to create the Maryland Business Tax Reform Commission. The Commission will review and evaluate the state’s current business tax structure and make recommendations for changes.  

Policies to be studied include mandatory unitary combined reporting, gross receipts taxes, value added taxes, alternative minimum taxes, and more.

As part of the study, the legislation imposes extensive new reporting requirements on corporations as part of their corporate tax return or for publicly traded companies with any minimal business activity in Maryland, effective for taxable years beginning after December 31, 2005. While the Maryland Chamber was pleased the study arose as an alternative to adopting the combined reporting method for corporate income tax returns, the legislation as drafted goes beyond what the government needs to do further analysis.

The new requirements will put huge burdens on businesses in terms of the time and costs for gathering and reporting the data.  Some of the requirements actually carry the possibility of legal challenge, such as the fact that they apply to corporations that have no nexus within Maryland.  The Comptroller’s Office will also be burdened with additional costs for computer resources and staffing to handle the data and required reports (they estimate $500,000 for computer programming and $300,000 for personnel costs).  The Maryland Chamber is seeking changes to the provisions, so that the information necessary to do the desired calculations is collected but unnecessary and overly burdensome requirements are removed.

To learn more, contact Karen Syrylo at ksyrylo@mdchamber.org.

February 4: Maryland Congressional Delegation Dinner
The Maryland Chamber’s Congressional Delegation Dinner will be held February 4 at Martin’s Crosswinds in Greenbelt. This event is an outstanding opportunity to meet with the entire Maryland congressional delegation at once.

During this town hall meeting style event, Maryland's congressional delegation and Maryland Chamber members will discuss important federal business issues like transportation funding, health care affordability, immigration reform, energy policy, and more. Each member of the delegation will briefly outline priorities and discuss how the delegation works together to get results for Maryland.

Registration is $80 for Maryland Chamber members, $140 for nonmembers. To register, click here or contact Kristen Solis at (410) 269-0642, (301) 261-2858 or ksolis@mdchamber.org. Sponsorship opportunities are available. For more information, contact Jan Krueger at (410) 269-0642, (301) 261-2858 or jkrueger@mdchamber.org.

Upcoming Committee Meetings

January 17, 2008
Environment Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
8:30 a.m.

January 17, 2008
Business Day in Annapolis
Loews Annapolis Hotel
126 West St.
Annapolis, MD 21401
2 p.m. Legislator Visits
4 p.m. Leadership Briefing
5:30 p.m. Legislative Reception

January 22, 2008
Legislative Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
10:15 a.m.

January 31, 2007
Civil Liability Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
10:15 a.m.

Upcoming Chamber Events

January 30, 2008
Chamber 101
Sheraton Annapolis Hotel
173 Jennifer Rd.
Annapolis, MD 21401
8 a.m.
Whether you are a new member or an established member looking to get the most for your membership investment, attend Chamber 101 to find out how you can put your Chamber membership to work for you. The event is free, but registration is required. Contact Gail Lemke for details at glemke@mdchamber.org.

February 13, 2008
How to Succeed After SBA 8(a)
Greenbelt Marriott Hotel
6400 Ivy Lane
Greenbelt, MD 20770
7:30 a.m.
Henry Guilford will share his experiences and outline the good, the bad, and the ugly of how to succeed after the SBA 8(a) program. Take advantage of this opportunity to learn from the SBA’s 2003 Small Business Person of the Year for the Washington metropolitan area.  Registration is $45. Contact Gail Lemke at
glemke@mdchamber.org.

April 22, 2008
Annual Membership Meeting and
Business Hall of Fame Awards Dinner
Hyatt Regency Baltimore
300 Light Street,
Baltimore, MD 21202  
5:30 p.m.
Save the date. The Maryland Chamber's Annual Membership Meeting and Business Hall of Fame Dinner is a "must attend" event for the state's top CEOs, business executives and elected officials. More information coming soon.