As business owners and managers, we are constantly making investments. We invest in people (our employees) and we invest in property (our offices, our stores, our equipment). These are all positive investments we make for our businesses, as well as for our communities and our state.

We should want to encourage more of these types of investment in our people and our property. Unfortunately, the outdated way Maryland taxes its businesses does the exact opposite. In Maryland, payroll and property are factors of a complicated formula used to determine a business’s corporate income tax.

This system has caused a huge disincentive for businesses to hire more employees or expand because their tax bill will go up. It has also created a great competitive disadvantage. Companies that make smaller investments in Maryland (mainly because they are located out-of-state) are taxed less than those that make more sizable investments.


Twenty years ago, Maryland’s tax structure was standard, but no longer. Most states (including several of our neighbors) have since recognized that this system is not beneficial and have switched to a “single sales factor,” which determines a business’s income tax solely on their in-state sales.

The time has come for Maryland to join the rest of the country and expand single sales factor to every business. We are not alone in this opinion. The Augustine Commission, convened by the General Assembly to make recommendations to improve Maryland’s business climate and grow jobs, agreed and recommended passing a statewide single sales factor.

The Single Sales Factor Coalition was formed to advocate for this needed change. We invite you to learn more about this issue as well as to join our coalition. Through our collective efforts, we will benefit Maryland businesses, and ultimately grow and support Maryland jobs.



Download this report by the Sage Policy Group to learn more about the Single Sales Factor:


Single sales factor (SSF) legislation has been adopted by a majority of states. Its predominance is no accident or coincidence. The many states highlighted in blue passed SSF because it benefits the businesses and citizens of their state. Maryland is one of a handful of states that allows for SSF but only for specific industries (manufacturers). It is the goal of the Single Sales Factor Coalition to expand SSF to businesses across Maryland so that the entire state may benefit.

Single Sales Factor Map