Starting today, Maryland tech companies will start giving more money to the state. And some local founders are worried about what comes next.
The new 3% tax on IT services comes as leaders in Annapolis deal with a budget crisis that's led to a hiring freeze. A state committee projected this tax could bring $482 million in new revenue over the next fiscal year.
Between the tax's upfront costs and the confusion around its implementation, several local CEOs fear this measure will hurt growth and force businesses to relocate elsewhere.
"I’ve spent plenty of time trying to figure out how to get out of it," one founder told Kaela. "The only way I can get out of it is to commit tax fraud, which I’m not going to do.”
What services actually get taxed? Check out our guide on what to expect, alongside perspectives from state government and economic development leaders.
