Maryland HB133 alters income and sales tax rates, exempts certain services, and modifies tax distributions.

Maryland HB133 revises the state income tax rates, setting a flat 3% rate for all income levels. It also changes the sales and use tax rates for various goods and services, including reducing the rate for digital products and services to 3%. Certain services, such as personal, professional, or insurance services, are exempt from sales and use tax if they do not involve a taxable sale. The bill modifies tax distributions, allocating a portion of sales and use tax revenues to the Blueprint for Maryland’s Future Fund and the Dorchester County Economic Development Fund.

Maryland HB133 alters income and sales tax rates, exempts certain services, and modifies tax distributions.

Maryland HB133 revises the state income tax rates, setting a flat 3% rate for all income levels. It also changes the sales and use tax rates for various goods and services, including reducing the rate for digital products and services to 3%. Certain services, such as personal, professional, or insurance services, are exempt from sales and use tax if they do not involve a taxable sale. The bill modifies tax distributions, allocating a portion of sales and use tax revenues to the Blueprint for Maryland’s Future Fund and the Dorchester County Economic Development Fund.