EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0324*
SENATE BILL 324
Q7 5lr1709
By: Senator McCray
Introduced and read first time: January 15, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Admissions and Amusement Tax – Food and Beverages 2
FOR the purpose of authorizing a county or a municipal corporation to impose the 3
admissions and amusement tax on certain gross receipts derived from the sale of 4
food or beverages; prohibiting the imposition of the admissions and amusement tax 5
on certain sales of food or beverages; establishing a maximum tax rate that a county 6
or a municipal corporation may set on the sale of food or beverages; providing that a 7
certain combined maximum tax rate does not include a tax rate on the sale of food or 8
beverages; and generally relating to imposing the admissions and amusement tax on 9
the sale of food or beverages. 10
BY repealing and reenacting, with amendments, 11
Article – Tax – General 12
Section 4–101, 4–102(b) and (c), 4–103(b), and 4–105(b) 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Tax – General 17
Section 4–105(a) 18
Annotated Code of Maryland 19
(2022 Replacement Volume and 2024 Supplement) 20
BY adding to 21
Article – Tax – General 22
Section 4–105(a–2) 23
Annotated Code of Maryland 24
(2022 Replacement Volume and 2024 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27 2 SENATE BILL 324
Article – Tax – General 1
4–101. 2
(a) In this title the following words have the meanings indicated. 3
(b) (1) “Admissions and amusement charge”, unless expressly provided 4
otherwise, means a charge for: 5
(i) admission to a place, including any additional separate charge 6
for admission within an enclosure; 7
(ii) use of a game of entertainment; 8
(iii) use of a recreational or sports facility; 9
(iv) use or rental of recreational or sports equipment; and 10
(v) merchandise, refreshments, or a service sold or served in 11
connection with entertainment at a nightclub or room in a hotel, restaurant, hall, or other 12
place where dancing privileges, music, or other entertainment is provided. 13
(2) “Admissions and amusement charge” does not include a charge for 14
admission to a political fundraising event. 15
(C) “FOOD OR BEVERAGES ” MEANS: 16
(1) FOOD AS DEFINED IN § 11–206 OF THIS ARTICLE; 17
(2) AN ALCOHOLIC BEVERAG E AS DEFINED IN § 5–101 OF THIS 18
ARTICLE; 19
(3) A SOFT DRINK, A CARBONATED BEVERAGE, OR BOTTLED WATER ; 20
OR 21
(4) CANDY OR CONFECTIONE RY. 22
[(c)] (D) “Game of entertainment” includes, in Anne Arundel County or Calvert 23
County, the game of instant bingo permitted under a commercial bingo license. 24
[(d)] (E) “Person” includes: 25
(1) this State or a political subdivision, unit, or instrumentality of this 26
State; 27
SENATE BILL 324 3
(2) another state or a political subdivision, unit, or instrumentality of that 1
state; and 2
(3) a unit or instrumentality of a political subdivision of this State or of 3
another state. 4
[(e)] (F) “Stadium Authority” means the Maryland Stadium Authority created 5
under § 10–604 of the Economic Development Article. 6
4–102. 7
(b) A county may impose, by resolution, a tax on: 8
(1) the gross receipts derived from any admissions and amusement charge 9
in that county; [and] 10
(2) an admission in that county for a reduced charge or at no charge to a 11
place if there is a charge for other admissions to the place; AND 12
(3) THE GROSS RECEIPTS D ERIVED FROM THE SALE OF FOOD OR 13
BEVERAGES AT A PLACE WHERE THE RE ARE FACILITIES FO R THE CONSUMPTION OF 14
FOOD OR BEVERAGES ON THE PREMISES . 15
(c) A municipal corporation may impose, by ordinance or resolution, a tax on: 16
(1) the gross receipts derived from any admissions and amusement charge 17
in that municipal corporation; [and] 18
(2) an admission in that municipal corporation for a reduced charge or at 19
no charge to a place if there is a charge for other admissions to the place; AND 20
(3) THE GROSS RECEIPTS D ERIVED FROM THE SALE OF FOOD OR 21
BEVERAGES AT A PLACE WHERE THERE ARE FACI LITIES FOR THE CONSU MPTION OF 22
FOOD OR BEVERAGES ON THE PREMISES . 23
4–103. 24
(b) The admissions and amusement tax may not be imposed by a county or 25
municipal corporation on gross receipts: 26
(1) EXCEPT AS PROVIDED I N § 4–102(B)(3) AND (C)(3) OF THIS 27
SUBTITLE, derived from any charge for merchandise, refreshments, or a service sold or 28
served at a place where: 29
(i) dancing is prohibited; and 30
4 SENATE BILL 324
(ii) the only entertainment provided is mechanical music, radio, or 1
television; 2
(2) derived from any charge for admission to: 3
(i) a live boxing or wrestling match; or 4
(ii) a concert or theatrical event presented or offered by a nonprofit 5
group that: 6
1. is organized and operated to present or offer an annual 7
series of scheduled musical concerts; or 8
2. is organized and operated for a cultural purpose and 9
receives a grant directly or indirectly from the Maryland State Arts Council; 10
(3) derived from any charge for admission to or use of: 11
(i) a facility or equipment in connection with a bingo game that is 12
operated in accordance with § 13–507 of the Criminal Law Article; 13
(ii) a bowling alley or lane; 14
(iii) a charter fishing boat; or 15
(iv) a nontethered hot air balloon; 16
(4) derived from any charge for admission or for merchandise, 17
refreshments, or a service, if the gross receipts are used exclusively for: 18
(i) a charitable, educational, or religious purpose; 19
(ii) a volunteer fire company or nonprofit rescue squad; 20
(iii) a fraternal, service, or veterans’ organization chartered by a 21
grant of Congress; or 22
(iv) the improvement, maintenance, or operation of an agricultural 23
fair, if no net earnings inure to the benefit of any stockholder or member of the association 24
that conducts the fair; [or] 25
(5) obtained at admission and used for the cost of prizes or as money 26
winnings distributed, as part of its operation, by a commercial bingo game in Anne Arundel 27
County; OR 28
(6) DERIVED FROM THE SAL E OF: 29
SENATE BILL 324 5
(I) AN ALCOHOLIC BEVERAG E THAT I S SOLD FOR 1
CONSUMPTION OFF THE PREMISES; 2
(II) FOOD OR BEVERAGES FO R CONSUMPTION OFF TH E 3
PREMISES IF SOLD BY A VENDOR THAT OPERAT ES A SUBSTANTIAL GRO CERY OR 4
MARKET BUSINESS AT T HE SAME LOCATION WHE RE THE FOOD OR BEVER AGES ARE 5
SOLD, REGARDLESS OF WHETHE R THE SALE IS SUBJECT TO THE SALES AND USE TAX; 6
OR 7
(III) FOOD OR BEVERAGES FR OM VENDING MACHINES . 8
4–105. 9
(a) Except as otherwise provided in this section, the admissions and amusement 10
tax rate is: 11
(1) the rate that a county or municipal corporation sets, not exceeding 10% 12
of gross receipts subject to the admissions and amusement tax; or 13
(2) the rate that the Stadium Authority sets, not exceeding 8% of gross 14
receipts subject to the admissions and amusement tax. 15
(A–2) THE TAX RATE SET BY A COUNTY OR MUNIC IPAL CORPORATION ON 16
GROSS RECEIPTS DERIV ED FROM THE SALE OF FOOD OR BEVERAGES UN DER § 17
4–102(B)(3) AND (C)(3) OF THIS SUBTITLE MAY NOT EXCEED 3%. 18
(b) (1) [If] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 19
SUBSECTION, IF gross receipts subject to the admissions and amusement tax are also 20
subject to the sales and use tax, a county or a municipal corporation may not set a rate so 21
that, when combined with the sales and use tax, the total tax rate will exceed 11% of the 22
gross receipts. 23
(2) THE MAXIMUM TOTAL TAX RATE UNDER PARAGRAPH (1) OF THIS 24
SUBSECTION DOES NOT INCLUDE A TAX RATE S ET BY A COUNTY OR MU NICIPAL 25
CORPORATION UNDER SU BSECTION (A–2) OF THIS SECTION. 26
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2025. 28