Senate Budget Committee Gets Lesson In Sales Tax Options

Analysts outline potential revenue from taxing services, Internet purchases

A Senate committee listened Tuesday to the pros and cons of expanding Maryland's sales tax base to include more services, as well as goods purchased over the Internet.

The Senate Budget and Taxation Committee spent the day in Annapolis receiving briefings on taxes, the federal debt ceiling, education funding and toll increases. Legislative committees meet occasionally between the 90-day General Assembly sessions.

Tangible products, but few services, sold by Maryland retailers are taxed at 6 percent. This year, the sales tax is predicted to generate $4.2 billion, about 30 percent of the state's general fund revenue, according to the Department of Legislative Services.

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