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Maryland To Tax Custom Programming and Computer Services

Posted by kdawson on from the strangling-the-golden-goose dept.

mcwop writes "Early this morning Maryland passed legislation to apply a new 6% sales tax to 'custom computer programming' and other computer- and hardware-related services. Computer industry groups lobbied hard against the measure to no avail. Purchasers of IT services may find that in-house IT and buying out-of-state become attractive options, as well as cutting money out of other projects."

2 of 395 comments (clear)

  1. Re:So... by Stamen · · Score: 4, Informative

    You payed "sales tax" on labor? Serious question, and perhaps that's how it works in your state. But in my state (CA), if you only provide services, without selling any product, you don't even have to get a seller's permit, as there is no taxes on services. I know because my company only provides services and no products.

  2. Re:So... by merreborn · · Score: 5, Informative

    And why should we be suprised by this?. The last time I took my car in for repair, I paid sales tax on part and labor. When I have my car parked Valet, taxes are factored into the the cost. And when UPS delivers a package for me, I pay tax on that too.


    In California, repair and installation labor is non-taxable.

    Point being, some labor is untaxed in some parts of the country, so this development may come as a surprise to some of us.