Maryland began its new fiscal year on 1 July by rolling out a package of tax and fee increases aimed at narrowing a projected $3 billion budget shortfall. The measures, enacted by the Democratic-controlled General Assembly and signed by Governor Wes Moore, raise levies on high-income earners, recreational-cannabis sales and sports wagering while introducing a 3% tax on a broad range of technology and data-processing services. Lawmakers estimate the tech-services levy alone will yield about $482 million in its first year, with proceeds feeding into the state’s $67 billion operating budget. Consumers and businesses will see the surcharge on products such as cloud storage, web hosting and software subscriptions; sellers are required to collect and remit the tax. Other revenue measures include an increase in the vehicle excise tax, a doubling of the emissions-inspection fee and a new rental-car tax. State income-tax rates will also rise for individuals earning more than $500,000 annually. The fiscal package is paired with a statewide hiring freeze intended to curb spending. Moore has defended the higher taxes as necessary for maintaining services and funding long-term priorities, arguing that the changes modernise the tax code and bolster the state’s competitiveness. Business groups warn the combined increases could raise operating costs and nudge some employers to relocate, setting the stage for further debate as revenue figures begin to arrive later this summer.