The Maryland House of Delegates passed budget bill HB 352 implementing a new 3% sales tax on data and IT services. It will expand the definition of “taxable service” to include categories like software publishing, media licensing, and intellectual property. HB 352 will take effect on July 1, 2025.

The bottom line: This revised proposal, part of Maryland Governor Wes Moore's budget agreement with legislative leaders, follows lawmakers abandoning an earlier, more broadly opposed measure that would have imposed a 2.5% tax on many business-to-business services.