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GSSCC Business E-News 2007

MARCH 2007


Legislation in Annapolis Would Require
Professional Services to Charge Sales Tax

The Maryland General Assembly is considering legislation to expand Maryland’s sales tax base to cover many professional services. This means many Chamber members could find themselves having to register for, and collect sales tax from their clients for the first time. On March 14, the House Ways & Means Committee will hold a hearing review the proposed legislation, HB448. Services being considered for taxation include:

• Management and business consulting services
• Engineering services
• Tax preparation services
• Public relations services
• Recruiting and staffing services
• Commercial photography
• Motor vehicle repair
• Storage services
• Barber and beauty shop services
• Shoe repair
• and many more. (See the bill for a complete list at http://mlis.state.md.us/2007RS/bills/hb/hb0448f.pdf )

Defeating this legislation is one of GSSCC’s legislative priorities this year. We are working with the Maryland Chamber to ensure a strong, pro-business presence at the March 14 hearing.

Save on Energy Costs – Join GSSCC’s Purchasing Co-op
GSSCC offers members an opportunity to save money, and stabilize energy costs over the long term. GSSCC’s Energy Co-op, created in conjunction with CQI Associates, an energy management and procurement company, has already saved participating members about 11 percent of what they would have paid in today’s market. First and foremost, this program is the only one in the state of Maryland that not only pools the energy needs of many companies, but also makes all of the state’s energy providers compete against each other to assure the best price. By combining the energy needs of participating companies, this co-op takes advantage of volume discounts not available to individual companies. That means there is a benefit for members of all sizes. By seeking competitive bids for a long-term contract, this co-op guarantees the best price possible in the market.

Council Approves Street Vendor Regulations
The Montgomery County Council approved this week regulations that will allow sidewalk vendors to operate in certain business areas. Vendors seeking to operate a pushcart operation will be required to apply for a license and request a specific location. County officials will determine whether that location is appropriate or not.

Last fall, as these regulations were being developed, the Chamber submitted a series of recommendations governing the location (distance from front entrance of existing businesses, prohibition against vendors being able to locate directly in front of permanent businesses selling the same merchandise, etc.) and operational review (legible license number and complaint hotline to be used for complaints about operations). Unfortunately, Council staff did not include these prohibitions in the final regulations. (A copy of the regulations will be available through the County Council website next week. Go to www.montgomerycountymd.gov, click on “Legislation and Resolutions,” then “Resolutions,” and look for Resolution No. 16-61.)

The Chamber will keep an eye on this issue and raise to the Council any concerns our members may have with regard to future street vendor operations.

Meet and Greet with Councilmember Valerie Ervin
Councilmember Ervin hosted an open, informal “meet and greet” from 7 p.m. to 9 p.m. on Wednesday, March 7th at Viers Mill Elementary School. Come and get to know the Councilmember from District 5!

Health Insurance Legislation Moves, No Help for Small Businesses
Legislation expanding health insurance coverage in Maryland is moving through the House, but includes no relief for small businesses.

One bill that both increased the cigarette tax and expanded Medicaid also included a provision that would have Small Business Health Care Incentive Program that would have provided a tax credit to small businesses who began offering the standard plan to their employees, effective later this year. A hearing that was planned for late February was cancelled and sponsors of the bill tell us that “no further action is planned at this juncture.”

Instead, a bill that would expand Medicaid rolls and require private insurance companies to allow young adults to remain on their parents' plans until age 25 has passed the House. Revenues for this bill would rely on an increase in the tobacco tax. The Senate is now looking at its version, SB 149.

We’re told that Governor O’Malley favors a more modest plan such as this. While his original bill required employers with more than ten employees to set up a "cafeteria" plan through which employees could use pre-tax dollars to pay for insurance premiums, it is expected that the legislation will be amended to drop this requirement, since it only made sense in the context of creating a Health Insurance Exchange. The “Exchange” idea is likely to be turned into a study.

Final amendments are being hashed in a work session today. Watch GSSCC’s Weekly Update for more information.

Warning – Advertising Scam Targets Chamber Members
The American Chamber of Commerce Executives (ACCE) has issued a warning about an advertising scam involving a company called “ADS Enterprise,” of Davenport, Iowa. This company is reported to have been cold calling members of chambers of commerce across the country, claiming to be working in partnership with their local chamber to sell advertisements in a relocation guide. To read the full article, visit http://www.acce.org/news-acce-article_ektid4828.aspx. For the record, GSSCC is not working with ADS Enterprise. Please be assured, the Chamber will not partner with or authorize any outside organization to solicit our members without first communicating information about the partnership and the benefits to the Chamber and our member companies. If, at any time, you have any question about the validity of a partnership, please call our office at (301) 565-3777.

Good News – Comparative Fault Withdrawn
The Chamber learned yesterday that HB110, Maryland Comparative Negligence Act -- a bill that would have changed the liability standard in Maryland from contributory negligence to comparative negligence -- was withdrawn by its sponsors. GSSCC joined the Maryland State Chamber in opposition to this legislation because it would have increased the cost of business liability insurance and increase the potential for unjustified lawsuits. Thanks and congratulations to those of you who wrote letters and emails in opposition to our state delegation.

Annapolis Update
With a little more than a week left in this legislative session, here’s the status of a couple of bills the Chamber has been following:

Sales Tax Expansion – HB 448, a bill that would expand Maryland's sales tax base to cover many professional services, including business consulting services, engineering services, public relations services, and more, has not moved. However, we believe that this proposal will be on the table next session, or during a special session, when the legislature begins debating how to deal with the State’s structural budget deficit. The Chamber has opposed this bill. Thanks to those of you who have written or emailed. Any member who would like additional information on the legislation or on how to express opposition should contact the Chamber.

Threat to Proprietary Business Information – The Maryland House of Delegates passed legislation that threatens to publicly disclose proprietary business information and impose burdensome reporting requirements on thousands of Maryland businesses. HB 983 and its companion bill, SB 614, direct the State to compile and make public extensive annual reports on which companies get tax credits, tax exemptions, or grants in excess of $50,000 (SB 614) or $100,000 (HB 983). The legislation is currently in the Senate Budget and Tax Committee. The Chamber strongly opposes this legislation. If you would like more information on the bill or how to express your opposition, please contact the Chamber office.

Taxes, Taxes and More Taxes – Maryland legislators have introduced almost 40 bills that would increase taxes for Marylanders. At least eight bills propose taxes or other fees that would directly affect businesses. Countless others directed at consumers – like the proposal to extend sales tax to services – would hurt Maryland businesses by making them less competitive with like companies in the District of Columbia and Virginia where these taxes don’t exist.

Showcase Your Company in GSSCC Directory
A key focus of the Chamber is our work to promote our member companies and encourage local businesses, residents and even those outside our area to purchase our members goods and services. One important vehicle for this effort is the annual GSSCC Business Directory and Buyers’ Guide. This year, the Chamber has retained the services of Atlantic Communications Group, Inc., a member, to design and publish our directory. This year’s book is being expanded to include a full-color editorial section featuring the benefits of living and working in this area, a full color map of greater Silver Spring, and some new promotion opportunities for members. Distribution will also be extended so the directory gets into the hands of the largest possible market of potential customers. Atlantic Communication’s Rob Waller is in Silver Spring talking to members about advertising sponsorship opportunities in this year’s directory. If you have any questions or need information about advertising, call the Chamber office.

Promote Your Company Through GSSCC’s Golf Classic
Increase your company’s visibility by becoming a sponsor of GSSCC’s Business Golf Classic. This annual event attracts high-level participation among some of the Chamber’s largest member companies. Various promotional sponsorship opportunities are available and offer varying levels of visibility and participation. All include participation (one or more foursomes), recognition in the program and on various signage at the event. Sponsorships are also available for the beverage carts, golf shirts and golf balls, as well as items for the golfer bags and door prizes. Don’t miss this promotion opportunity. Call 301-565-3777 for more details, or copy this link into your browser’s address bar http://www.silverspringchamber.com/rtc/files/news/golf_sponsorship.pdf.

GSSCC Networking Breakfast
This month’s GSSCC Networking Breakfast was held on Wednesday, March 14, 2007, at The Golden Flame Restaurant (8630 Fenton Street, Silver Spring). The Spotlight speakers were from Dr. Marcus S. Tappan & Associates and Junior Achievement of the National Capital Area.

GSSCC Business After Hours
Sandy Spring Bank hosted the March GSSCC Business After Hours on Wednesday, March 28. It was a great event. Thanks to all who attended.
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Tel: (301) 565-3777 Fax: (301) 565-3377 8601 Georgia Avenue, Suite 203, Silver Spring, MD 20910