Posted on 03/17/25
| News Source: WBAL
Annapolis, MD - March 17, 2025 - Maryland Gov. Wes Moore announced Monday that the state would not impose the controversial business-to-business tax and the sugary drink tax in the final budget.
The 2.5% business tax would have been on things like accounting, social media and other services businesses get from one another. The “For Our Kids Act” would have added a two cents-per-ounce tax on sugary drinks, syrups and powders.
When speaking on the decision to not include the business tax in the state budget, Moore said he wanted the state to be economically competitive and business friendly.
“When I laid out that we had to make ourselves more economically competitive and more business friendly, that meant actually creating and opening up pathways for business to grow and stay in the state of Maryland and making it the best place in the country in order for businesses to grow,” Moore said. “That is why the broad business-to-business tax will not be in the final budget.”
When addressing the decision not to impose the sugary drink tax, Moore said Marylanders are feeling the impact on the cost of goods in the grocery stores.
“We got to impact and bring down the cost of what people are seeing inside of the grocery stores and inside of the markets,” Moore said. “That is why things like the soda tax will not happen in the state of Maryland and the soda tax will not be included in the final budget.”
Maryland House Republicans Jason Buckel and Jesse Pippy released statements following Moore’s comments on taxes and the budget.
“While we are pleased that Gov. Moore has finally voiced his opinion on two significant revenue measures under consideration, we remain cautious,” Buckel said. “The governor chose his words very carefully. There is much he did not say, and he did not answer any questions. I would submit to you that neither Maryland’s businesses nor our taxpayers are entirely off the hook quite yet.”
“We know two things to be true – the budget will not be balanced without significant cuts, and both the governor and the Democratic majority appear unwilling to make those cuts,” Pippy said. “They see their only option as new revenues. While there is some buzz about a possible hike in the sales tax, it is really anyone’s guess at this juncture.”
Maryland faces a $3.3. billion budget deficit.