- New Tax Legislation: Maryland’s House of Delegates adopted a budget bill that introduces a new 3% sales tax on data and IT services, effective July 1, 2025, following prior changes to sales tax rules for digital goods and services.
- Taxable Services: The new sales tax will apply to various services, including data processing, hosting, IT services, web search portals, digital libraries, and software design and development.
- Legislative Process: The proposal is now with the Senate for consideration; any amendments made by the Senate will require approval from the House of Delegates, and if rejected, the bill will go to a conference committee for further discussion.
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