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Maryland Turning Eye To Tax Changes

Increased Revenue Sought Amid Recession And Cuts

August 12, 2009|By Laura Smitherman , laura.smitherman@baltsun.com

On the Internet tax front, a retailer such as Amazon does not collect sales taxes because it has no physical presence in the state. But competitor Barnes & Noble must charge sales taxes at its bookstores in the state as well as on products shipped to Maryland homes.

The Maryland Chamber of Commerce opposed the bill this year, saying it might not pass constitutional muster. The group also objected to a provision that would trigger the tax when out-of-state vendors advertise with Maryland businesses, saying they would lose advertising revenue.

But Sen. Richard S. Madaleno Jr., a Montgomery County Democrat, said he would probably reintroduce the bill next year. He has caught the attention of Senate President Thomas V. Mike Miller, who said the current structure puts Maryland retailers at a disadvantage.

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But the idea faces opposition in the House of Delegates, where lawmakers have said the state should wait for federal action and Miller says a recession or an election year is no time to raise taxes.

"I've worked on tax issues before, and it's tough to get votes in a nonelection year," Miller said. "You won't get any Republican votes and not many Democrats either."

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