Maryland’s Revenue Subcommittee voted against HB 1623, which would expand sales tax to innumerable services never taxed before by the state. This was no easy feat though. During a five-and-a-half-hour hearing, 112 industries and Governor Hogan’s office testified in opposition to this tax hike proposal, with only seven individuals supporting it. If this bill passed it would have effectively applied a 5% tax on services that are used daily by community associations across Maryland.

CAI’s Maryland Legislative Action Committee (LAC) spent days engaging grassroots efforts throughout the state to oppose this harmful legislation. Their efforts began with an email campaign to legislators. Roughly, 2,300 advocates sent more than 2,800 emails to the Revenue Subcommittee opposing the tax hike.

Additionally, CAI MD LAC Committee members and other CAI management professionals went to Annapolis for the hearing and testified that taxing regular and unplanned services such as emergency repairs, would have a negative impact on community associations. This could include, budgets and reserves, increase assessments, possible deferred maintenance affecting the infrastructure of a community and its property values. Finally, it could potentially impact many of our residents’ ability to stay in their homes, especially those on fixed incomes.

CAI LAC’s work tirelessly to monitor state legislation, educate lawmakers, and protect the interests of those living and working in community associations. Each committee is comprised of volunteer homeowner leaders, community managers, and business partners. Our LAC’s meet with legislators and staff in their respective state capitols advocating for the community association housing model. The hours our volunteer members commit to our industry each year are crucial to the stability and proper governance of community associations. Learn more about CAI’s LACs.

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