In 2007, a special session of Maryland’s General Assembly enacted a slew of tax increases designed to deal with the state’s structural deficit. Among them was a 20% increase in the sales tax rate, which increased from 5 cents on the dollar to 6 cents.
For years, merchants along the Eastern Shore have complained about the disadvantage they labor under because Delaware businesses charge no sales tax. It’s no accident that the seaside resort of Rehoboth Beach has also become a shopping hub. Or take a drive north from Salisbury along U.S. 13 and you’ll notice a number of stores selling big-ticket items located just across the border. While Maryland residents who buy items in Delaware are supposed to remit a tax to Maryland, the law is rarely enforced.
(continued on my Examiner.com page…)
