Delegate Wilkins pushes MPU certificate reform to ease software tax burden

Delegate Janelle Wilkins presented House Bill 933 (cross-filed with Senate Bill 644) to the Senate Budget and Taxation Committee, describing the measure as a targeted fix to Maryland's approach to taxing multi-state software and related services.

"The purpose of the bill is to ease the burden of the implementation of the tech tax," Wilkins said, adding that Maryland had already authorized MPU certificates when the tech tax took effect. She explained HB 933 would ensure multi-state businesses "only use the portion that is Maryland's share of the tax." The bill would make MPU certificates valid for two years, establish a renewal process and allow the Comptroller to revoke a certificate "if there's any fraud or negligence."

Wilkins noted that Maryland's major corporations and the Maryland Chamber of Commerce support the bill and that the Comptroller's office worked with sponsors on the language. She urged the committee to give HB 933 a favorable report.

Context and implications: MPU certificates are an administrative tool to apportion tax on transactions that include taxable software or services used in multiple jurisdictions. The two-year certificate and renewal process in HB 933 are intended to reduce transactional friction for businesses that operate across state lines. The bill would not change tax rates; it changes administrative duration and revocation rules for MPU authorizations.

What the committee did: The hearing record shows presentation and questions but does not include a detailed committee vote tally on HB 933 in the provided transcript. The bill was presented and discussed as part of the committee's package of House cross-files.