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Bill Rejected To Make Room For Tech Tax Repeal

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Mar 12, 2008 1:59 pm US/Eastern

Bill Rejected To Make Room For Tech Tax Repeal

ANNAPOLIS, Md. (AP) ― The Maryland Senate has rejected a proposal to make room in the state's budget for a repeal of the controversial tax on computer services.

However, with opponents in the industry turning up the heat against it, lawmakers are talking about finding an alternative funding source to repeal the tax.

Republican Sen. David Brinkley proposed an amendment to the state budget to make room for the $214 million the tax is projected to raise.

Brinkley's proposal would have used $114 million in the state's general fund balance and required the governor to make $100 million in cuts.

The amendment, which found support from several Democrats, was rejected with 26 senators voting against it and 19 supporting it.

Opponents say the amendment only offered a one-time fix. They say a solid funding source will have to be found before the tax can be repealed.

(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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