Computer Service Tax Repealed

Yesterday, Governor O'Malley signed a into law a bill repealing Maryland's tax on computer services (Senate Bill 46). Computer services were to be made subject to Maryland's sales and use tax effective on July 1, 2008, as part of the tax legislation signed into law after the General Assembly's special session last fall. The tax on computer services was widely criticized by members of the computer industry, who lobbied hard for the repeal of the tax, and by Comptroller Peter Franchot.