|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARVIN MANDEL, Governor 3873
Annapolis, Maryland 21404
Dear Mr. Speaker:
In accordance with Article II, Section 17 of the
Maryland Constitution, I have today vetoed House Bill
754.
This bill, and its companion, Senate Bill 491,
exempt from the State sales and use taxes the sale of
tangible personal property to a person under contract to
incorporate the property into realty in another State or
the District of Columbia, provided that the purchase or
use of the property is not subject to a sales or use tax
in that State or District.
The purpose of the bill is to improve the
competitive advantage of Maryland contractors desiring to
do work in Delaware, which has no sales tax, and the
District of Columbia, which exempts government contracts
from its sales and use taxes, by exempting from the
Maryland sales and use taxes their purchase of tangible
personal property in Maryland that will be used on jobs
in those other jurisdictions.
I have no objection to legislation that would make
it easier for Maryland business to compete in other
jurisdictions. However, the effect of this bill,
according to the Director of the Retail Sales Tax
Division, would be an annual loss to the State of over
$1,000,000 in sales and use tax revenue.
As every member of the General Assembly knows, it
was their painful duty to raise the State sales, use, and
excise taxes this year in order to place the State on a
sound fiscal footing for the future, and to assure that
the various programs in the areas of education, health,
and social services enacted to benefit all the citizens
of Maryland can continue to be implemented. At a time
when the State so desperately reeds the additional
revenue, and all of the people are being asked to pay
more taxes, I do not believe it wise or fair to give a
special break to but one class of commercial taxpayer.
For that reason, I have vetoed House Bill 754.
|
|
|
|
|
|
|
|
|
|
Sincerely,
Marvin Mandel
Governor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
 |
