Many of you have commented on how much you enjoy getting my newsletters and appreciate being kept informed on activities in Annapolis.  So as time permits, I will try to send you updates on issues before the legislature.  This will not take the place of our newsletters and will be timelier.

The 2009 Session of the General Assembly opened on Wednesday, January 14th and we got to work immediately getting briefings from state government officials, preparing bills, and scheduling hearings.

For the past two years I have been assigned to the Ways and Means Committee and have sat on the Education and Transportation Subcommittees.  Chairman Hixson believes that each delegate should rotate among the subcommittees to gain expertise on the various issues before the committee.  This year I have been assigned to the Revenues and Financial Resources Subcommittees.

We spent considerable time and effort during the Special Session of 2007 and the 2008 Session reviewing the Maryland budget and reworking the tax structure of Maryland.  However, we continue to look for loop holes and inequities in the tax structure and ways we can improve revenue collection in Maryland.

We recently had a briefing on the Streamlined Sales Tax Project which was very interesting.  The revenue erosion from e-commerce continues to represent a significant loss to state and local governments – ranging between $21.5 billion and $33.7 billion. The Streamlined Sales Tax Project was started following a court ruling that any merchant did not have to collect sales tax on items sold if they did not have a physical presence in that jurisdiction.  The case was made by merchants that sales tax rules and definitions vary widely between localities.

Twenty-two (22) states have adopted the simplification measures in the Agreement.  Four other states are considering legislation this year.  The agreement seeks to simplify both the definitions of taxable items and the transmittal of taxes to the states.  A proposal has been made for Maryland to join the compact.  The Uncollected Sales Tax Revenue for Out of State sales to Maryland residents is estimated at over $500 million.

The economic condition of the county and the State of Maryland continues to be the focus of both citizens and elected officials.  As you may have heard, in December Governor O’Malley announced furloughs for state employees ranging from two to five days and the elimination of vacant positions in state departments.  Because the salary of elected representatives of the General Assembly cannot be cut while they are in office, House of Delegates Speaker Busch and Senate President Miller asked all members of the General Assembly to make a donation of up to five days salary to show their support for state budgetary measures.  I joined them in donating five days pay to Maryland.

Recently I have started a blog to give snapshots of my day and the issues coming across my desk.  Please go to my website www.delegatepetermurphy.com to learn more.

I want to thank you for electing me to represent District 28 in the House of Delegates.  If you have any questions about issues before the legislature, do not hesitate to contact my office at 301-858-3247 or send me an e-mail at peter.murphy@house.state.md.us.