Amid budget cuts, renewed calls for nixing Computer Services Tax

Even as the state is slashing its budget in preparation for an economic downturn, Republican House delegates are pushing for a revocation of the computer services tax and Gov. Martin O’Malley isn’t objecting.

“I was hoping that abolishing the computer services tax would be a component [of the House’s budget bill]” Del. Susan L.M. Aumann (R-Baltimore County) said in reference to the 6 percent sales tax on computer maintenance and services, passed during last fall’s legislative special session.

Aumann warned that the computer services tax “could cost jobs,” which she said would be “a detriment to our economy.”

She said technology companies fearful of the tax “who started in Maryland” may leave the state.

Like Aumann, Del. Patrick L. McDonough (R-Middle River) expressed strong opposition to the computer services tax, saying it “attacks an industry that can easily move to another state.”

“Even the governor has serious reservations about (the tax),” McDonough said.

When contacted by PolitickerMD.com, Christine Hansen, O’Malley’s deputy press secretary, confirmed that the governor was “for repealing” the computer services tax, saying it was “not part of his original proposal.”

Hansen said the governor was for the repeal as long as lawmakers could find a solution as to where the money that the tax would generate would come from.

McDonough said the tax “makes no sense,” and said he felt it would lead to “a loss of jobs.”