TOWSON, MD (Monday, March 2, 2020) – AAA Mid-Atlantic will join the Coalition of Maryland Business Organizations, comprised of the Maryland Chamber of Commerce (MDCC), National Federation of Independent Business (NFIB), Maryland Retailers Association (MRA), Maryland Motor Truck Association (MMTA), Mid-Atlantic Petroleum Distributors Association (MAPDA), Washington, Maryland, Delaware Service Station and Automotive Repair Association (WMDA/CAR), Maryland Hotel Lodging Association (MHLA), and many others in opposition to HB 1628 - Sales and Use Tax - Rate Reduction and Services. The joint press conference will be held on Monday, March 2 from 11:00 a.m. – 12:30 p.m. in Annapolis.

Representatives from the Coalition, including AAA Mid-Atlantic will testify in opposition to the proposed tax increase before the House Ways and Means Committee, following the press conference at 1:00 p.m. AAA will also be testifying in opposition to HB 1354 – Sales and Use Tax -Services, which would impose a sales tax on travel arrangements or reservation services.

WHAT:           Joint Press Conference to declare opposition to HB 1628

WHO:             Hosted by Coalition of Maryland Business Organizations

WHEN:           Monday, March 2, 2020

                        11 a.m. – 12:30 p.m.

WHERE:        House of Delegates Office Building

                        Meeting Room 180: Baltimore County Delegation Room

                        6 Bladen Street, Annapolis, MD 21401

If passed, HB 1628 would expand the state sales tax to countless services that have never been taxed before, resulting in the largest single tax increase in Maryland history – $2.6 billion - impacting all Marylanders.

AAA provides automotive, travel, and insurance services to 60 million members nationwide and nearly 988,000 members in Maryland. HB 1628 would result in a tax on services for automobile repair, roadside assistance, and travel services, which are among the many services AAA offers to members and the general public.

“Expanding the sales tax to include labor on motor vehicle repairs (it already applies to parts) will further and significantly increase the cost of auto repairs,” said Ragina C. Ali, Manager of Public and Government Affairs at AAA Mid-Atlantic. “Another perhaps unintended consequence is the effect on auto insurance. Auto body and repair services are significant to the cost of auto insurance claims. Adding this tax would further increase Maryland’s already high auto insurance rates,” Ali added.

“We know this tax would increase the cost of doing business in Maryland by at least five percent and place Maryland travel agencies and businesses that provide travel services at a disadvantage with competitors in neighboring states,” said Ali.

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AAA provides automotive, travel and insurance services to over 60 million members nationwide and nearly 988,000 members in Maryland.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android.  For more information, visit AAA.com.