Comments on: The software industry lacks political clout

By: luis

luis — Sat, 24 Nov 2007 20:38:37 +0000

So it looks like it may apply to all computer services businesses that do business in the state, that's unclear; also two other states have taxed computer services before and repealed them later New tax plan draws scorn and praise - Levy on computer services decried:

In general, the sales tax is applied to any company that sends employees into the state to meet with clients or provide services, Syrylo said. But there are stickier questions, such as what happens if several companies partner on a program, she said. â€˜â€˜It can cause administrative nightmares,â€ Syrylo said. In some states, such as Pennsylvania and Florida, similar laws have been repealed, she said.

By: matt

matt — Fri, 23 Nov 2007 03:55:23 +0000

This outcome doesn’t have to mean a lack of political clout. Part of it, I think, is the way the legislative process worked. At the beginning of the special session, lawmakers held hearings on taxing a specific set of services– health clubs, for one. And lobbyists representing those services came to Annapolis and told lawmakers not to do it. Lawmakers listened (incorrectly, I’d say), and dropped these services from their tax package. But then, late in the game, after the public hearings had been completed, they came out of left field with this computer services idea. Lobbyists simply didn’t have time or warning to respond. And some lawmakers took the floor to complain, for the record, that lobbyists for affected computer industries should have had the opportunity to say what they thought about this idea.

Of course, the $200 million price tag didn’t hurt either.

By: Michael Clark

Michael Clark — Thu, 22 Nov 2007 14:09:37 +0000

In 5 years, do you really think they’ll repeal this tax? No, that will be a billion dollars in income by then.