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Will they or won't they repeal the computer services sales tax? It's an important question, because Comptroller Peter Franchot will face an enforcement nightmare on July 1 if the legislature doesn't step up to do the right thing.
Why? Well, that's simple. Because a group of jackassess wrote the law.
You see, the law was written in such a way that even if you use a company from out of state, that has no physical presence in Maryland, you are still subject to the tax.
That's right. If you use Billy Bob's Web Design Company in Red Lion, PA (which operates out of William Robert's basement, and thus, has no office in Maryland), you are supposed to pay the 6% directly to the Comptroller.
Think that will happen? It doesn't with internet and mail order purchases now-- who are subject to the same provisions under the Maryland State Sales Tax.
How do you think Maryland businesses will feel about having the Comptroller of Maryland audit every invoice to determine if they should be subject to the computer services sales tax? Better yet, how do you think national and multinational corporations (like, for example, Lockheed Martin) will feel about that?
I'm thinking that most businesses would either a) flip the Comptroller the bird, or b) drop trou and invite the Comptroller to plant his lips upon their ass.
And thus is the nightmare. Peter Franchot -- who is no anti-tax warrior -- has no idea how he will possibly enforce the law. He doesn't have the staff or manpower now to cover those areas already under his jurisdiction, like gas taxes, cigarette taxes, property taxes, video gaming machines, income taxes, and oh yeah, sales taxes.
Let the nightmare begin.