Maryland business leaders slam Gov. Moore and the legislature, warn of a possible exodus

BALTIMORE (WBFF) — A diverse group of Maryland business owners is urging state lawmakers and the governor to reconsider a historic $1.6 billion increase in taxes and fees ahead of an anticipated budget vote in the final days of the 2025 legislative session.

Todd Huff, the operations manager of his family’s automobile repair shops, told Spotlight on Maryland that he was thrilled to celebrate his company’s 82nd anniversary recently. However, he said that his joy on Friday turned to unease upon learning about a new $5 tire fee proposal that had been quietly added to the final Senate budget plan, which may soon become law.

“I think it’s insane,” Huff said. “They’re talking about trying to protect the middle class, but it’s the middle class that’s driving the cars and buying the tires.”

On Thursday, the proposed $5 tire fee passed through the Senate Budget and Taxation Committee. This fee would apply to the purchase of each new automotive tire, resulting in an additional $20 when purchasing a complete set of new tires for a standard private passenger vehicle. The state anticipates that the new fee could generate approximately $24 million in necessary revenue.

“We started out down in Baltimore City, now we’re all here in Baltimore County, but we also have locations in Pennsylvania,” Huff said. “It wouldn’t be unheard for us to take and move our entire operation up into Pennsylvania because every time we turn around, we just keep getting taxed and burdened with more garbage coming out of Annapolis.”

They’re not looking out for the small business guys,” Huff added.

Huff’s worries about the welfare and survival of his third-generation business and its employees are not isolated.

Spotlight on Maryland spoke with Todd Marks, the owner and CEO of Mindgrub Technologies, on Saturday afternoon at his home in Catonsville. As a technology entrepreneur since 2002, Marks told Spotlight on Maryland that the controversial new 3% tax on digital services might lead him to reconsider the future of his business, which is Baltimore’s largest headquartered digital technology agency.

“They’re trying to aggressively go after new sources of revenue,” Marks said. “Whether I have to charge my clients 3% or I have to pay 3% to all of the subcontractors and the technology we employ in the state of Maryland, I just can’t bear it.”

According to state budget documents, the 3% technology tax that passed the House of Delegates' version of the budget on Wednesday represents the largest revenue generator among all the new tax and fee increases, estimated at $497 million.

RELATED | Maryland's financial future: will a historic tax hike and budget cuts be enough?

Holding back tears, Marks told Spotlight on Maryland that, given his company's slim margins, the new ‘tech tax’ may deliver a final blow to its Maryland operations.

If the tax is passed, I will have to move or go out of business in this state,” Marks said.

Both business leaders’ concerns reflect a similar theme that Spotlight on Maryland has heard throughout the state during the 2025 Maryland General Assembly session. Despite Maryland Gov. Wes Moore's ongoing promise to make the state more attractive for companies to relocate to while improving the economy for existing businesses to expand and thrive, Huff and Marks believe the goal has been missed in the state budget framework agreement.

“Yes, we’re suffering a $3.3 billion deficit, but we can’t just raise more money because the problem is we have a dwindling population,” Marks said. “When you grow the state, you can bring in more revenue without adjusting your tax base.”

“[W]e must spend less. I know the current administration doesn’t like that answer, but that is frankly what we have to do,” Marks added.

Spotlight on Maryland sent Gov. Moore on Saturday a series of questions, including:

• Why are more tax options being proposed despite an announced framework?
• Will you sign a bill that imposes a $20 tax on a new set of tires?
• Do you think many of these tax proposals, including the tire tax, vending machine tax, and even the mattress tax, are regressive?
• Will Maryland’s structural and cash deficits be eliminated under this budget plan for FY2027-FY2030?
• What is the likelihood that you will call for a special session of the Maryland General Assembly to balance the budget for long-term fixes versus this short-term proposal?

The governor’s spokesperson, Carter Elliott, responded but did not directly answer the sent questions. Instead, the governor’s office said that the state’s current $3.3 billion budget shortfall originated from the former administration of Gov. Larry Hogan.

“In 2023, on his way out of office, the former governor proposed spending down more of the state’s cash surplus than Gov. Moore proposed in his first budget,” Elliott said. “Gov. Moore’s first budget proposal left $820 million cash surplus and preserved $1 billion to fund the state’s most strategic priorities, the Blueprint and transportation, which were neglected by the previous administration.”

Elliott also provided Spotlight on Maryland a collection of related news reports and a background explanation of the legislative process.

Under the agreement, 94% of Marylanders will either get a tax cut or see no change in their income taxes,” Elliott said. “The governor will continue to work with the state legislature, local leaders, and all partners involved to ensure that we pass a budget that will give middle-class families a break, grow our economy, and protect and invest in our people.”

The governor’s office told Spotlight on Maryland in mid-February that they had “targeted” their “relief towards middle and working class families and the average Marylanders can expect to see relief.”

“A middle-class family of five whose household takes in $115,000 a year can expect to see a tax cut around $437,” David Turner, the governor’s communications director and senior advisor, said in February.

Spotlight on Maryland analyzed recent updates to budget proposals released by the House last week. These proposals show that an average Maryland household, comprising a family of four with a taxable income of approximately $100,000, can expect a reduction of around $53 in state income taxes for fiscal year 2026.

RELATED | Maryland taxes tied to stagnant growth; analysts criticize Moore's new income tax plan

Meanwhile, Marks said he believes the budget decisions made in the coming days will be a defining moment for Gov. Moore and senior state lawmakers.

They don't get it, but they will. One way or another, they're going to get it when their legacy becomes the biggest exodus of business in the state of Maryland," Marks said. "Then, it will really strike home."

Spotlight on Maryland sent budget-related questions on Saturday to House Speaker Adrienne Jones and Senate President Bill Ferguson, but neither acknowledged nor responded.

The Senate is expected to hold its first floor debate on Monday over the state’s budget.

Follow Gary Collins with Spotlight on Maryland on X. Do you have news tips on this story or others? Send news tips to gmcollins@sbgtv.com.

Spotlight on Maryland is a collaboration between FOX45 News, WJLA in Washington, D.C., and The Baltimore Sun.