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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."

4 of 395 comments (clear)

  1. So is this good or bad for coders? by phorm · · Score: 4, Interesting

    In one case, it adds to the cost of hiring a contractor, thus raising the price of short or quick contract work (bad for contractors). On the other hand, hiring an in-house IT guy to do coding (which I'd assume isn't taxed beyond normal income taxes) may seem better, which perhaps means more permanent jobs.

    Stupid taxes are still stupid, but is this one good or bad for the IT sector in general?

    1. Re:So is this good or bad for coders? by funaho · · Score: 3, Interesting

      A 6% sales tax means that it's no longer worth it for me to do any work in Maryland

      And this is where the real victims will be, those of us who do programming work on the side for some extra income. The hassle of getting a tax ID (which might require setting up a real company), collecting and passing on sales tax to the state is pretty big when all you had to do previously was declare a couple thousand extra dollars on your income taxes at the end of the year. The big consulting companies will complain about it, but in the end they'll just keep on rolling. The little guys will get rolled over.

      Michigan (which is where I live and work) recently passed a large tax law change that will charge 6% sales tax on consulting services, among many other things such as massage services (yeah you'll pay 6% on your happy ending!) I'm still trying to decide if its worth the hassle anymore.

  2. Re:buying out of state isn't an option by superwiz · · Score: 3, Interesting

    Funny how you said "cases". A friend of mine recently avoided most of the tariff for a computer he sent to Germany by declaring it as a computer "case". Yes, I know you meant something else. I am just wondering... what pun?

    --
    Any guest worker system is indistinguishable from indentured servitude.
  3. Re:Idiocy like this... by tkrotchko · · Score: 3, Interesting

    "'boy is this guy trying to make a 5->6% move sound like a bigger deal than it is'."

    Yeah, how dare he do the math and quote the correct percentage increase.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you