The MD|DC Credit Union Association submitted a letter opposing Maryland
House Bill 1554/Senate Bill 1045, which would impose a new 2.5% tax on a broad range of business services. The Association is concerned that this tax would significantly increase operational costs for businesses of all sizes, creating unnecessary financial burdens at a time when economic growth should be encouraged.

The letter notes that by taxing essential professional services, such as legal counsel, consulting, and financial planning, this legislation could discourage investment in critical business functions and stifle economic expansion. For credit unions specifically, the tax on financial planning services under NAICS code 5239 is particularly concerning.

“Financial planning is a key tool in helping individuals and businesses protect their assets and make informed decisions about their financial future,” states MD|DC Credit Union Association President/CEO John Bratsakis. “Businesses and individuals rely on financial planning to secure their future, and adding an extra cost to these services could limit access to valuable financial guidance.”

Rather than imposing additional financial barriers, the Association is urging policymakers to focus on initiatives that promote business success and financial well-being.