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Wednesday, February 28, 2007

Maryland Considers Alcohol Tax Hike

Maryland faces a $1.3 billion budget gap for the fiscal year that starts July 1st and lawmakers are looking at several ways to bridge the chasm. A boost in the state sales tax is on the table, as is a proposal that would increase the excise tax on alcohol.

Gov. Martin O'Malley says he would like to look at cutting government waste before considering tax hikes, but members of the Maryland House of Delegates are already discussing various tax hikes. The sales tax increase is likely to be the more controversial solution and could be pushed into next year in favor of other options.

Besides a tax hike on alcohol, other proposals include a sales tax on certain professional services that have previously been exempt.

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