ANNAPOLIS -- The Maryland Retail Merchants Association became yesterday the latest business group to speak out on a controversial tax package that, among other things, would expand and raise the state sales tax.
Not surprisingly, the group found no merit in that aspect of the package, named the Linowes report after its chairman, Montgomery County lawyer R. Robert Linowes. The report, which the Schaefer administration has decided to send to the General Assembly, would raise about $800 million in new taxes to help poorer jurisdictions around the state, as well as raise money for education and transportation.
"Of particular concern to retailers is the recommendation for a 10 percent increase in the sales tax [from 5 percent to 5.5 percent]," the association stated. The Linowes commission also suggested expanding the sales tax to include dozens of service industries not currently taxed.