Initial returns on IT and data sales tax falling short of estimates, as state grapples with budget

By: Bryan P. Sears

Outlets: Maryland Matters

Published: March 11, 2026

Words: 1,142

Last Updated: 4 months, 3 weeks ago

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A controversial sales tax on IT services that was approved last year is not filling state coffers as expected.

The 3% sales tax on business-to-business IT and data services was expected to generate $500 million, but initial numbers reviewed by Maryland Matters show collection is off by as much as 90%.

“It certainly raised some eyebrows, and we’re going to have to pay very close attention,” said Senate Budget and Taxation Chair Sen. Guy Guzzone …

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