Get a seat at the table—before we’re on the menu

This post was written by Jon Engelking, NSITSP member

Why IT Service Providers Need a National Voice—Before It’s Too Late

On March 26, 2025, something happened in Maryland that should send shockwaves through every Managed Service Provider (MSP) in the country. The Maryland House of Delegates passed budget bill HB 352, which includes a 3% sales tax on data and information technology services.

This tax—part of a broader budget deal announced by Governor Wes Moore—was pushed through quickly, leaving many in the IT services community scrambling to understand what just hit them. But there’s one group that wasn’t scrambling: accountants and lawyers. Why? Because they weren’t on the list. They were excluded from the bill.

Why were they excluded? Because they had representation. Strong national organizations with the lobbying power, political connections, and member engagement to push back and protect their industries.

MSPs Were Left Out—Because We’re Not Organized

This isn’t just a Maryland problem. This is a national wake-up call.

The fact is, MSPs and IT service providers don’t have a unified, national organization with the credibility and political influence to represent us where it matters most—in legislative halls, during budget negotiations, and at public hearings.

If we don’t show up, we get taxed. We get regulated. We get left behind.

In contrast, industries like legal and accounting have national trade associations and well-funded advocacy groups that hire lobbyists—professionals whose sole job is to monitor bills, build relationships with legislators, and mobilize their members when there’s a threat. Lobbyists aren’t free—these groups invest real money to protect their members’ interests. That’s why they’re off the hook. We’re not—because we don’t have that same level of representation or financial backing.

The Role of NSITSP—And Why You Need to Join

The National Society of IT Service Providers (NSITSP) was created to be exactly that kind of voice for our industry. But here’s the problem: it can’t do its job if MSPs don’t join.

We need mass participation. We need financial support. We need your voice.

If you think what happened in Maryland won’t happen in your state, think again. Legislators are looking for new revenue sources, and they don’t understand what we do. They lump us in with software vendors or tech giants. And unless we educate and advocate, we’ll keep getting taxed, misclassified, and ignored.

This Is the Moment to Act

Maryland just became the canary in the coal mine. What happens next depends on what we, as an industry, do right now.

• Join NSITSP: It’s the only national organization dedicated to protecting and professionalizing IT service providers. Your membership helps fund advocacy, education, and outreach.
• Share this message: Talk to your peers, your vendors, your networks. Let them know that being unrepresented has a cost—and it just showed up as a line item on a tax bill.
• Get involved: Whether it’s helping monitor legislation, speaking to local reps, or contributing to thought leadership, your engagement matters.

Don’t wait until your state follows Maryland’s lead. Add your voice.

Together, we can make sure our industry has a seat at the table—before we’re on the menu.