Maryland Taxes Computer Services, Then Repeals It

The Tax Reform Act of 2007 was signed Maryland Governor Martin O’Malley on November 19, 2007. As a result, the definition of “taxable services” under the sales and use tax law had been altered to include certain computer services. “Computer services” includes such transactions as custom computer programming, data processing, computer disaster recovery, and hardware or software installation, maintenance or repair. The definition does not include charges for computer training. The provisions under the new legislation were set to become effective July 1, 2008. UPDATE: Before the law change had a chance to take effect, however, legislation to repeal the taxation of computer services was passed in a special session and signed by the governor on April 8, 2008. (S.B. 46, Laws 2008)

Posted on April 18, 2008