MD Businesses, Artists Seek Aid As Lawmakers Return To Annapolis

ANNAPOLIS, MD — Maryland's state lawmakers returned to Annapolis on Wednesday. This year's legislative session, which lasts until April 12, could impact small businesses and artists.

Local entrepreneurs are already in a pinch because of the pandemic. Legislators are eying potential tax changes, coronavirus relief and economic stimulus. These key bills could be boons or downfalls for Maryland's business community.

The state's art organizations also need some help. With smaller budgets, these creatives faced a challenging stretch when performance venues and galleries saw their capacities slashed. They too are asking for a hand from policymakers.

Patch recently partnered with several local organizations to bring you their latest news. This week's guest contribution comes from the Annapolis Arts District and the Downtown Annapolis Partnership. Here's what Executive Director Erik Evans wrote about legislative session:

"This year the Maryland Statehouse session might look a bit different due to COVID protocols that limit in-person interactions with the public. Public input at committee hearings will become virtual and require more advance planning if you want your voice heard on any of the hundreds of issues, they will be discussing and voting on.

Outside the Statehouse, the public is watching how the government will solve issues important to them. Hundreds of pieces of legislation are currently being considered. The business community after almost a year of being either shut down or operating in a limited capacity is looking for vaccinations to be distributed quickly so that their employees and customers can start returning to some level of normalcy. The quicker the government vaccinates the public and finds a safe way to reopen businesses the fewer funds that will be needed in the long term for unemployment, eviction prevention, and the other effects of this stalled economy. The business community looks forward to the news headlines changing from which businesses have closed and the latest unemployment numbers to businesses are reopening and hiring again.

In the meantime, businesses are watching a few key pieces of State legislation. There are several funding opportunities the State will be considering to help businesses get through the next several months until they allow businesses to return to normal. Governor Hogan recently announced a billion-dollar COVID relief plan that will require legislative approval. If approved by the legislators it will provide tax relief and much needed funds to both individuals and businesses this year.

The Maryland Main Street programs that help Maryland’s 33 Main Street communities are filled with mostly small locally owned businesses that are requesting more funding. These programs support thousands of local businesses and historic preservation in the heart of our communities. Funding for this program is so low that the 33 Maryland Main Street programs cannot all depend on getting annual operating funding from the State. Every year the State picks and chooses which Main Street programs will get operational funding for the year. In Annapolis, the Main Street program area is managed by the Downtown Annapolis Partnership and it has about 400 businesses including 90 retailers, and 80 restaurants/food service businesses that the program supports. Across Maryland, each Main Street program supports communities with economic development, community events, and historic preservation.

Maryland’s 25 State Arts Districts are also looking for continued funding. They support over $1 billion in state Gross Domestic Product and approximately $72 million in state and local tax revenues. Most arts organizations have had to suspend or reduce art programs due to COVID which directly affects almost 10,000 jobs statewide. Operational funds from the state are typically less than $15,000 per State art district in Maryland. The arts economy is one of the hardest-hit sectors of our economy. In the Annapolis Arts District located about 2 blocks from the Statehouse there are 20 entertainment/venue organizations, 15 artist studios, 13 galleries/museums/exhibit spaces, 12 places for arts education plus creative professionals, architects, restaurants, retail stores, salons, and hotels that the organization promotes.

This year the state is looking to fund many new programs with new taxes on businesses, even while record numbers of businesses are closing. One of the failed proposals last year that is expected to be reintroduced this year would expand sales taxes from currently being focused on products to also including services including auto repair, attorney fees, accounting services, and haircuts. Additionally, the State legislators are considering to overturn Governor Hogan’s veto of HB732, which contains a provision that would tax revenue from digital advertising up to 10%. Businesses are closely watching how legislators take positions on these issues since targeted social media advertising has become key for small businesses to communicate with customers. The pandemic has also increased businesses' need to get advice from their accountants and legal advisors as they navigate the new rules and programs related to COVID.

Restaurants are watching HB0012 which would allow restaurants and bars to continue selling liquor in sealed containers for carryout. Arts venues are watching SB0323 which would establish a capital fund for the arts. There are many other pieces of legislation that are yet to be introduced in the coming weeks that will keep everyone busy as they get introduced, debated, and voted on.

Elected leaders understand COVID will make it harder for the public to do in-person advocacy. Most elected officials have been pro-active in reaching out to their constituents this year with online town halls and virtual office hours so that they understand everyone’s concerns on hundreds of issues. While in-person visits may be limited this year, you can make your voice heard at the Statehouse on any issue by reaching out directly to your State elected officials via phone, email, social media, virtual town halls, and virtual office hours. They want to hear from you.

If you happen to be visiting elected officials this winter in Annapolis be sure to safely visit the 90 downtown retailers, and 80 restaurants including those with heated tents in downtown Annapolis.

Erik Evans
Executive Director
Annapolis Arts District and the Downtown Annapolis Partnership"

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