Local tech companies say new IT tax could push them out of Maryland

Maryland’s new 3 percent tax on data and information technology services represents more than a revenue measure, and it is causing companies to relocate out of Maryland. It signals a shift in how the state treats its technology sector. In this presentation, attorney and CPA Chad D. Cummings examines the real-world impact of House Bill 352 on small and mid-sized technology companies, including documented cases where business owners face material increases in their effective tax burden that cannot be passed through to clients in a competitive regional market. The discussion explains why relocation decisions are driven not only by the tax itself but by broader concerns about policy trajectory, regulatory predictability, and the ability to recruit and retain talent. It also analyzes how states such as Florida and Texas position themselves to receive this migrating capital, and why many of the most consequential business departures occur quietly without public announcements. Learn more: https://www.cummings.law/redomestication/