March 1, 2007

Legislative Activity

March 1, 2007

To: AAF Members in Maryland

From: Clark Rector Jr., Senior Vice President – Government Affairs

Re: Maryland Tax Bill

A group of legislators in the Maryland House of Delegates have introduced a bill (House Bill 448) that would extend the sales tax to numerous services, including advertising-related services such as public relations, business consulting, art services, photographic services and direct mail services.

The bill is scheduled for a hearing in the House Ways and Means Committee on March 14. If you have not already done so, I urge you to contact members of the committee and voice opposition to the bill. I hope you will also consider attending the hearing and speaking out against the tax.

While it is unlikely that House Bill 448—or any other tax bill—will pass in the current session of the legislature, it is very possible that a tax bill will be seriously considered in the next session. Legislators need to hear now that the advertising industry will vigorously oppose any effort to impose a harmful tax on advertising or related services.

A roster of Ways and Means Committee members and talking points against the bill are listed below. Please pass along this alert and urge other ad industry professionals to weigh in against this dangerous tax proposal.

More information on the bill and legislature can be found on the General Assembly's Web site at Do not hesitate to contact me at (202) 898-0089 if you have any comments or questions. Thank you for your help with this important matter.

House Bill 448 should be opposed because:

  • The tax will put Maryland providers of these services at a competitive disadvantage. All of the services in the bill are very portable. Clients can easily go across state lines to find providers who do not have to pay the Maryland tax surcharge.
  • The tax will result in fewer Maryland jobs. As clients go out of state, Maryland service providers will be forced to reduce their in-state workforce.
  • The tax will not result in greatly increased revenues. Sales tax receipts will be lower than anticipated as work goes out of state. Fewer jobs will result in a corresponding loss of income tax revenue as well
  • The tax sends the message that Maryland is anti-business.

House Ways and Means Committee

Sheila E. Hixson, Chair —
Ann Marie Doory, Vice Chair —
Joseph R. Bartlett —
Kumar P. Barve —
Jon S. Cardin —
D. Page Elmore —
Ronald A. George —
James W. Gilchrist —
Carolyn J.B. Howard —
Jolene Ivey —
J.B. Jennings —
Anne R. Kaiser —
Nancy J. King —
Susan W. Krebs —
Robert A. McKee —
Peter F. Murphy —
John A. Olszewski Jr. —
Craig L. Rice —
Justin D. Ross —
Melvin L. Stukes —
Frank S. Turner —
Jay Walker —

House Office Building, Room 131
6 Bladen St., Annapolis, MD 21401
(410) 841-3469, (301) 858-3469
fax: (410) 841-3777, (301) 858-3777