Curated News
By: NewsRamp Editorial Staff
July 02, 2025
Maryland's New IT Tax & Demographic Shifts Highlight State Changes
TLDR
- Maryland's new 3% sales tax on IT services could push tech firms to relocate, offering a competitive edge to states with lower tax rates.
- The Maryland Comptroller’s office has detailed the IT services subject to a new 3% sales tax, effective July 1, to address a state budget deficit.
- New laws in Maryland aim to improve tenant rights with mold remediation requirements and increase taxes on the wealthiest to fund public services.
- Maryland's demographic shifts show most counties losing white residents while gaining in Black, Asian, and Hispanic populations, reflecting broader national trends.
Impact - Why it Matters
The introduction of a 3% sales tax on IT services in Maryland could significantly impact tech businesses and consumers, potentially leading to higher costs for digital services. This tax, alongside other fiscal reforms, reflects the state's efforts to address budget deficits but may also influence business decisions and economic growth. Demographic changes underscore evolving community dynamics, while new laws like the Tenant Mold Remediation Act aim to improve living conditions. These developments collectively signal a period of significant transition for Maryland, affecting residents, businesses, and the broader economic landscape.
Summary
Maryland introduces a new 3% sales tax on IT services, including computer infrastructure providers, data processing, and cloud storage, as part of Gov. Wes Moore's budget to address a $3-billion deficit. The tax, detailed in a Maryland Comptroller’s office document, has sparked concerns among tech firms, with some considering leaving the state. However, clarifications on pre-existing contracts' exemptions have temporarily eased fears. Additionally, Maryland's tax reforms extend to the wealthiest earners, recreational cannabis, and sports betting, marking a significant overhaul of the state's tax code.
Other notable changes include the Tenant Mold Remediation Act, requiring landlords to address mold complaints within specific timelines, and demographic shifts showing most Maryland counties losing white residents while gaining in Black, Asian, and Hispanic populations. The discontinuation of specialized LGBTQIA+ support by the national suicide prevention hotline raises concerns, despite remaining crisis support options. Meanwhile, political and legal developments include Anne Arundel County Executive Steuart Pittman's fine payment allowing him to lead Maryland Democrats and the ongoing detention of Kilmar Abrego Garcia, a Salvadoran national facing human smuggling charges.
Source Statement
This curated news summary relied on content disributed by citybiz. Read the original source here, Maryland's New IT Tax & Demographic Shifts Highlight State Changes
