Help Me Fight Maryland’s Horrendous Sales Tax Increase, Even If You Live In Utah!
Author: Nick
Category: Money
Topics: politics, taxes
In 1999, I was but a student in a Baltimore-area high school when Martin O’Malley, a former assistant state’s attorney and city councilmember, became the Mayor of Baltimore. Living in a suburb of Baltimore, I knew right then and there that he would eventually become Governor of Maryland and I’d have to deal with his financially retarded policies. You see, while he was Mayor of Baltimore, O’Malley did interesting things with taxes. He would first drop some taxes to make people happy, but then he would increase other ones—a lot. In the end, O’Malley left Baltimore more heavily taxed than when he first took office.
Fast forward to 2008. Sure enough, O’Malley is Governor of Maryland. Today, for the first time since 1977—before I was even born—the Maryland state sales tax is going up under legislation enacted by O’Malley. Indeed, he hasn’t been governor for a full year and he’s already screwing with decades-old tax rates. (While he was at it, he also raised several other tax rates but attempted to hide them behind tiny property tax rate cuts. O’Malley says that over 80% of Maryland families will pay fewer taxes overall, but he’s assuming that Maryland’s highest-in-the-nation housing prices are going to keep rising. In the end, it’s likely that even the poor of Baltimore City will pay more taxes than before.)
Starting today, our state’s sale tax is going up 20%: from 5 cents per dollar to 6 cents per dollar.
You might think I’m being a little silly getting so upset over a tax hike that only amounts to an extra $100 for every $10,000 of purchases. You might even think it’s a good thing because it will help discourage stupid people with credit cards from buying giant TVs and overpriced cars they can’t afford. Maybe you’re right. But my reasons for raging against the sales tax increase are different:
- Our 5% sales tax is sacred. Maryland is as proud of its 5% sales tax as it is of its historical significance, Chesapeake Bay crabs, and high STD rate. Touching our sales tax is like molesting a baby seal on its birthday—you just don’t do it.
- It’s the one affordable thing about Maryland. Everything costs so damn much in Maryland, especially in my county. Gas? $3.10 a gallon. Housing? $300,000 for a shack. Eggs? We only get 7 per dozen. At 5%, Maryland goes from being second-lowest among its neighbors to tied for highest.
- 5% sales tax is easy. Especially in this age of rampant illiteracy and people who can’t do math, we need an easy-to-compute sales tax. You can do 5% in your head in five seconds; 5% of $2.09: drop the nine and take half of what’s left, or half of 20 = 10 cents. What’s 6% of $2.09? Nobody freaking knows!
- It’s from O’Malley. For many reasons beyond the scope of this discussion, I don’t like O’Malley. I might have tolerated a sales tax increase from any other governor a little more, but having it come from O’Malley makes me think about moving. Unfortunately all of our neighboring states suck worse than we do. No offense, Virginia, West Virginia, and Pennsylvania.
Lucky for all of Maryland, this personal finance writer is not taking this assault on our freedom lying down. Indeed, I am sitting on my couch when I say that I will fight this unjust tax increase in the highest court of the land: the Court of My Wallet. And if you’d like to join me, here’s how you can help me fight the Maryland sales tax increase from anywhere in the country:
- Never visit Maryland. If you’re debating a family vacation in either Florida or Maryland this year, let me save you the trouble and point you straight to Disney World. Why anyone would want to travel to Maryland is beyond me since the only thing we have that you can’t find in a closer, cheaper state is lots more traffic. Now that our sales tax is 6%, please keep your tax dollars in states with much sexier governors.
- Never live in Maryland. We make it easy for you by keeping our housing prices and rent at the highest levels in the country. If you really want to pay high housing prices on the East Coast, go live in New Jersey.
- Never drive through Maryland. Not even to get to Pennsylvania from West Virginia. Go the long way. Otherwise you risk contributing financially to Maryland via its ridiculous highway tolls or taxes on rest stop vending machines. Also, don’t fly through Maryland because our air is 30% slower than the national average.
- Don’t buy from Maryland online retailers. Some Maryland retailers, mostly of candied asparagus, will charge Maryland sales tax from their websites. Send those retailers an e-mail letting them know you’re not buying from them because they didn’t complain loudly enough to block this sales tax increase.
- If you live in Maryland, go shop somewhere else. Yes, you’re probably supposed to pay Maryland use tax anyway on items you order out-of-state or online, but we all know you don’t. That said, if anyone asks, I do.
- Tell O’Malley what you think. You can use this convenient online form to let Governor O’Malley know that you won’t stand for his sales tax increase, even if you live in France and don’t speak a lick of English. Zut, O’Malley! C’est merde!
With any luck, O’Malley will see that a 6% sales tax isn’t any better at fixing his budget problems than a 5% one.
By the way, if you think you’re safe from O’Malley’s rampage from one of your 49 other states, beware: I’d put money on an O’Malley U.S. presidential bid by 2020. If you like the 15% income tax bracket, then you’ll love 25%!
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26 Responses »
1.
thisisbeth
January 3rd, 2008 at 11:46 am
Let’s see my bill from CVS last night:
Subtotal: $10.48
MN 6.65% Tax: .70
Total: 11.18
Ya wimp. 6% is EASY!
State-wide sales tax is 6.5%, but the county I live in has .15 additional sales tax.
2.
Catherine from AK
January 3rd, 2008 at 2:36 pm
Alaska does have the sexiest Governor we admit, but
NO STATE SALES TAXES, oh yeah and no Income Taxes, low property taxes and only a few cities with city sales taxes.
But they will get you at the hotel with a 12% bed tax per night.
I moved to the land of the midnight sun for no taxes.
Fight it as hard as you can… Once the get it they NEVER give it BACK.
3.
Kevin
January 3rd, 2008 at 2:56 pm
Dallas is 8.25% (not sure on the state/county/city breakdown).
Course no state or local income tax makes it a little more bearable.
Kevin
4.
Clever Dude
January 3rd, 2008 at 4:09 pm
Don’t we border Delaware too? I’m too lazy to look at a map myself, so I’ll let you do it.
I figure that when I split dining bills with people, I’ll just calculate based on 5% and let them take the other 1%
I will say that it’s easier to get around in Northern Virginia from Maryland than from within Virginia itself, so that’s one positive about this place. Oh, and D.C. has a 10% sales tax, which really kills at Fogo de Chao. The place is already $50 per person!
5.
rstlne
January 3rd, 2008 at 5:26 pm
Move to Delaware. It may not be the sexiest state but the sales tax there is still 0%.
6.
Lord
January 3rd, 2008 at 6:30 pm
CA 7.75% (and that’s down)
7.
Mrs. Micah
January 3rd, 2008 at 7:05 pm
Yes, you border Delaware–and it’s the home of the 0% sales tax. I’m still learning to deal with anything else.
But I’m also not going shopping in DC with the 10% tax!!
8.
rocketc
January 3rd, 2008 at 7:49 pm
Wisconsin’s sales tax is 5.5% - figure that in your head on a 79 cent hamburger.
Our property tax is where things get outrageous. My house is tiny and I am paying $2000 a year in property tax plus natural gas tax plus electrical tax plus internet service tax plus phone bill tax plus car tax plus food tax plus the air I breath tax. . .
9.
Fiscal Musings
January 3rd, 2008 at 10:33 pm
I understand that other states have higher sales taxes, but I hate to see any taxes going up. The government needs to figure out how to do more with less like they want us to do.
10.
Clare
January 3rd, 2008 at 11:02 pm
I wrote letters to every delegate, legislator, etc. during the special session. A select few sent replies, but not enough to convince me that we would maintain our 5% sales tax. This is just fueling my determination to be frugal.
11.
rocketc
January 4th, 2008 at 11:08 am
Lower taxes actually results in higher revenue for the government - this works especially well on the state level.
12.
JSB
January 4th, 2008 at 12:29 pm
Western NY sales tax - 8.75%. Second on this list to only DC.
13.
Clare
January 4th, 2008 at 2:35 pm
Oh, and speaking of Utah: Their sales tax is 4.75%. As of January 1, 2007, sales tax on food and food ingedients dropped from 4.75 to 2.75.
http://tax.utah.gov/sales/food_rate.html
14.
Dawn
January 4th, 2008 at 6:07 pm
Pennsylvania is at 6%, with an additional 1% in Philadelphia and Pittsburgh. Plus, at least in the Philly burbs, our property taxes are significantly higher than in Maryland. We also got a Christmas Eve state income tax increase last year.
In New Jersey (where my husband works), property taxes are even higher, as are payroll taxes.
I think you may be better off on this one in Maryland.
15.
Frugal Dad
January 4th, 2008 at 10:50 pm
5% puts Georgia’s 7% sales tax to shame. Now this doesn’t impact us frugal folks quite as much as others, but it certainly impacts everyone investing in a high-dollar purchase. I work with a lady from Baltimore so I’ve heard a similar rant when I asked her about living in Maryland…small world!
16.
David Lacey
January 5th, 2008 at 7:24 am
I was going to purchase a brand new vehicle this year as mine is five years old. Because of the sales tax increase, I plan to buy a new vehicle in 2009 when I move out of Maryland.
17.
S4B
January 5th, 2008 at 8:36 am
Upstate NY, Monroe County. Combined state and county tax rate is 8%. NY state may have the lowest state tax rate of 4%, but counties and some cities can rake in as much as 5.5% additional. Oneida county, has a combined rate of 9.5%. Of course, it is not a growth area. The remaining citizens pick up the slack with a higher sales tax bill.
The Maryland tax of 6% is nothing to be proud of. Clothing and footwear are still being taxed. You think the sales tax increase that the Governor signed would have made it more progressive? Nah, not a chance.
However, Maryland is still not taxing an extensive set of services. Many of those are still not taxed. Take automotive repair, for example. In PA, NJ and NY, the labor is also taxed, not just the parts they install. In MD, only the parts are fully taxed at 6%.
Those that are fortunate enough to live near the tax border of PA and DE
can shop for clothing or other items that are not taxed at all. WVA is absolutely no bargain, as even food in a supermarket is taxed at 6%.
I could go on, but in summation…you have choices. Vote and buy items with your foot and shop out of state for some purchases. For the routine stuff, is it really worth it? Petrol and diesel are very expensive these days, so one must calculate the cost of the round trip commute to get to lower taxing jurisdictions.
18.
Briar
January 5th, 2008 at 9:47 pm
I grew up in Maryland back when the tax rate was 4%. Now I live in Southern California and I have to take exception with your belief that Maryland is expensive. You should try it out here. Feel free to stop by my $1570.00/month two-bedroom apartment sometime. And I do NOT live in Orange County or the San Francisco area. I live in the desert where it’s relatively cheap!
19.
E.C.
January 6th, 2008 at 1:24 pm
I just paid 6.250% sales tax on GROCERIES! This was after my state reduced the state tax on food. Other consumer goods are taxed at over 9%in my area, and dining out is a luxury and subject to a tax of over 11%. You have it easy.
20.
mbhunter
January 10th, 2008 at 12:30 am
Oh suck it up. I grew up in NY. Sales tax was 7% as long as I could remember.
21.
mjmcinto
January 10th, 2008 at 11:34 am
Just wait till you sell your house. You’ll get robbed by fees. I was looking at the closing statement for the house we sold (we moved away from MD…probably around your area punny, as I’ve eaten at that Olive Garden you mentioned in your never ending bowl of lies post several times), and I noticed a several hundred dollar fee from the state for stamps and filing crap! What an outrage. When I bought my house in another state, our closing costs were so much cheaper (and it was on the same priced house….only this one is much nicer). Though we do have a 9% sales tax (10% if you go into the city…thanks to a wonderfully crazy new mayor).
22.
Matt
January 10th, 2008 at 6:36 pm
For an awful lot of folks, 6% would be an IMPROVEMENT. Your comments already show that.
But 5% is better than 6%, and 0% is way better than either. (Then again, I’m an ideological minarchist, so of course I think that.)
Still, even if you lose this fight, you can be happy you don’t pay taxes in DC, or New York, or Chicago, or California…
23.
Libertarian
January 11th, 2008 at 3:09 pm
Don’t forget, Maryland is requiring ALL internet purchases are now subject to 6% sales tax. That’s right, anyone living in Maryland, is required to pay 6% sales tax on ANYTHING they buy online even if that company is outside of the state and has NO brick and mortar location within Maryland boarders.
And guess what? If that company does not collect the taxes, the state expects YOU to report that purchase to them, and are required to pay the state that money owed them!
24.
Libertarian
January 11th, 2008 at 3:12 pm
Now, that I think about it NYC is 15% on the dollar. They get it both from the state and the city. Delaware on the other hand has no slaes tax, no property tax, and no income tax.
25.
Libertarian
January 11th, 2008 at 3:13 pm
Now, that I think about it NYC is 15% on the dollar. They get it both from the state and the city. Delaware on the other hand has no sales tax, no property tax, and no income tax.
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