Proposed MD Small Business Tax
Why am I informing my prospective clients about a possible tax that would be imposed on them for using services like mine?
Transparency.
My goal is to help Maryland’s small business community. This includes providing intel on difficult topics so these businesses can monitor, act, and plan accordingly, regardless of their impact on me.
What is the proposed legislation?
Maryland’s lawmakers are proposing legislation (HB 1554 / SB 1045) that would apply taxes to transactions between businesses.
For example, if your company uses an external IT company for any reason, including web hosting, if this legislation is passed, your company would be required to pay a 2.5% tax on the total annual amount you spend with that vendor.
From a numbers perspective, if you pay them $50,000 annually, you would be responsible to pay $1250 in taxes to the state of Maryland.
Upon auditing your vendor contracts, these numbers will quickly add up.
Click here for more information on the proposed legislation and the list of services that your small business would be taxed for using.
What are your options?
If the legislation passes, there will be options to legally circumvent or reduce the amount you owe by:
1. Considering non-Maryland vendor options
2. Recruiting in-house teams or individuals
3. Researching cheaper vendor options
**JAG Consulting has competitive pricing for HR Services**
JAG Consulting can assist with all three options! To learn how and to schedule a complimentary consulting call, please email us at janellegardiner@consultjag.com