Maryland has passed the sales tax on IT services. Of course, they are not thinking that IT is easily moved out of state. Every facet of my business is impacted by this. It is not “only” a 3 percent tax. There are additional compliance costs as well. I am going to have to pay more for my bookkeeper to process this nonsense…I am going to have to spend time explaining why my already raised rates have to up..immediately to cover my additional costs. I have to pay for research to see if I have to charge my out of state clients this tax…i think there are some federal Constitutional issues with this. My internet bill will go up by more than 3 percent…immediately for the same reason. My cell phone bill will go up by more than 3 percent…immediately..for this same reason. This is going to be about a 5-10 percent increase in costs for everyone in the state…at least ones who continue to consume services in this state form companies in this sate. I am now at a large economic disadvantage due to the fact that most of the services i provide can easily be moved to organizations outside of the state. I am going to be going to a networking event tomorrow and I am going to be real curious to see what the discussion is going to be like. There are some absolutely mammoth IT companies in Maryland…I will be very curious to see if they intend to start shifting operations outside of the state due to this.
NAICS 518 (Data Processing, Hosting, and Related Services):
This sector includes establishments that provide infrastructure for hosting and/or data processing services.
Examples: Data processing services, web hosting, and related services.
NAICS 519 (Other Information Services):
This sector encompasses establishments that supply, store, and provide access to information, search and retrieve information, operate websites using search engines, or publish and broadcast content exclusively on the internet.
Examples: Web search portals, libraries, archives, and other information services.
NAICS 5415 (Computer Systems Design and Related Services):
This sector includes establishments that specialize in computer systems design and related services, including computer facilities management services.
Examples: Computer systems design, computer facilities management, and related services.