A Maryland measure to extend the state’s sales tax to most professional services has been rejected by a panel of lawmakers.
A House subcommittee shot down the proposal Wednesday night.
The measure would have raised an estimated $2.9 billion in fiscal year 2025. It was proposed to pay the state’s share of a major education funding plan that is advancing in the legislature.
However, the extension of the tax was widely opposed by Maryland business groups.
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Del. Eric Luedtke sponsored the bill. He says a House subcommittee has advanced a smaller package of revenue measures for the education proposal, which would be phased in over 10 years.
The Montgomery County Democrat says on Twitter that officials will have more work to do in the future to fund later years in the education measure.