Annapolis, MD (April 8, 2008) - Comptroller Peter Franchot today announced that he was taking down the draft regulations for the proposed computer services tax and applauded the efforts of everyone who worked diligently to have the tax repealed. An early and consistent supporter of repealing the "tech tax," the Comptroller congratulated the state's computer services industry for organizing an effective advocacy campaign and applauded the Governor and the legislative leaders for taking appropriate action.

"On the merits, the computer services tax was a bad idea whose time will hopefully never come. I am extremely pleased to be able to pull down the draft regulations for this tax and hope that we will never again have to post them on our website," said Comptroller Franchot. "I want to commend the coalition of small employers, computer professionals and business organizations that came together and provided overwhelming evidence that this tax would harm the state.

"I also commend Governor O'Malley and the legislative leaders for their responsive and responsible action to repeal the computer services tax. From all accounts this tax would have had a negative impact on Maryland's business climate and the long-term success of our knowledge-based economy. By repealing this tax we are sending the correct message that we intend to grow this critical industry and remain a national leader in the life sciences and technology sectors."

After the computer services tax was unexpectedly passed by the Senate during last fall's Special Session, the Comptroller wrote to House Speaker Michael Busch urging the House not to approve this tax. In the letter, date November 8, 2007, the Comptroller particularly noted the "numerous challenges related to the implementation of this measure," coupled with "the disturbing message that this new tax measure sends…. to Maryland's business community."

Subsequently, the Comptroller spoke out against the tax throughout the winter and urged the state's computer industry to mobilize and let their voices be heard during the 2008 Legislative Session. During Session, the Comptroller testified in both chambers in support of the repeal while at the same time ensuring that his agency promulgated draft regulations that would meet the goals set by the Governor and the Legislature.

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Contact: Joe Shapiro, 410-260-7305, office; 443-871-2244, cell