A compromise spending plan for the coming budget year includes more than $1 billion in tax increases, including a proposal to let local governments increase the maximum local piggyback tax rate.
The revenues were unveiled Thursday by the governor and legislative leaders as part of a broad budget “framework” that will guide negotiators in the next few weeks, as they rush toward the end of the session.
The new revenues, coupled with an estimated $2.5 billion in budget cuts, are designed to cover a projected $3 billion deficit in the fiscal 2026 budget, and leave a reserve for fiscal 2027. The budget will also include “federal government spending triggers” that would activate in response to likely federal budget cuts.
“It ensures that those who rely on federal benefits are informed, prepared and can advocate for their continued access to essential service regardless of what happens at the federal level,” Senate President Bill Ferguson (D-Baltimore City) said.
Topping the list of new taxes unveiled Thursday is nearly $500 million from a 3% sales tax on data and IT services, according to budget documents shared with Maryland Matters. The tax, originally proposed as a business-to-business tax, would apply to anyone who uses such a service.
Click here to read the rest of the article written by Bryan Sears over at Maryland Matters
