HB 1079
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
First Reader
House Bill 1079 (Delegate Attar)
Ways and Means
Admissions and Amusement Tax - Exemption - Activities That Promote Health
and Physical Well-Being
This bill prohibits a county or municipality from imposing an admissions and amusement
tax on the gross receipts derived from any charge for (1) participating in an activity that
promotes health and physical well-being or (2) admission to an establishment that offers
activities that promote health and physical well-being, including tennis centers, fitness
centers, and gymnasiums. The bill also repeals the local authority to impose the admissions
and amusement tax for the use of a recreational or sports facility and the use or rental of
recreational or sports equipment. The bill takes effect July 1, 2021.
Fiscal Summary
State Effect: None.
Local Effect: Local revenues decrease by a significant amount beginning in FY 2022.
Local expenditures are not affected.
Small Business Effect: Potential meaningful. Small businesses eligible for the exemption
would no longer have to pay admissions and amusement taxes.
Analysis
Current Law: Counties and municipalities are authorized to tax the gross receipts derived
from (1) the charge for admission to any place furnishing a performance such as a movie
theater or sports stadium; (2) the use or rental of sporting or recreational facilities; (3) the
merchandise, refreshments, or services sold or served in connection with entertainment at
a nightclub or a room in a hotel, restaurant, hall, or other place where dancing privileges,
music, or other entertainment is provided; (4) use of a game of entertainment; and (5) use
or rental of recreational or sports equipment.
Counties and municipalities may also impose a tax on admission for a reduced charge or
at no charge to a place that otherwise charges admission. An admissions and amusement
tax may not be imposed in a municipality by a county if the municipality already imposes
a similar tax or specifically exempts any gross receipts from the admissions and amusement
tax.
The Maryland Stadium Authority (MSA) is authorized to impose a tax on the gross receipts
derived from any admissions and amusement charge for a facility owned or leased by the
stadium authority. The stadium authority also may impose an additional tax for each person
provided with a free admission or an admission at a reduced charge to a stadium authority
facility. Currently, these taxes are imposed at both stadiums at Camden Yards.
Each unit of local government sets its own single tax rate or range of rates. This rate is
expressed as a percentage of gross receipts, up to a maximum rate of 10%. MSA may
impose an admissions and amusement tax at its facilities of up to 8%. In those instances
where gross receipts are subject to both a local and a stadium authority admissions and
amusement tax, the stadium authority tax takes precedence. The stadium authority imposes
the maximum 8% rate at both stadiums at Camden Yards. Therefore, Baltimore City may
only impose a maximum 2% admissions and amusement tax on those receipts.
The local admissions and amusement tax is further limited by the State sales and use tax.
The maximum tax rate on the gross receipts subject to both the State sales and use tax and
the local admissions and amusement tax may not exceed 11%. Therefore, if the 6% State
sales and use tax applies to these receipts, the local admissions and amusement tax may
not exceed 5%. This limitation on the local tax arises primarily on performances
accompanied by some type of food service (e.g., dinner theaters).
Counties, municipalities, and the stadium authority are authorized to classify different
types of activities, and the rate of tax need not be the same for each type. If a municipal
government does not levy a tax, the county tax, if any, applies within the municipality.
Local Admissions and Amusement Tax Rates and Revenue Amounts
The admissions and amusement tax is imposed in all counties (with the exception of
Caroline and Frederick counties), Baltimore City, and most municipalities. Tax rates for
Maryland counties for fiscal 2020 and 2021, as well as the estimated revenues for
fiscal 2021 are shown in Exhibit 1. Additional information on local admissions and
amusement tax rates and revenues can be found in the County Revenue Outlook report. A
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copy of the fiscal 2021 report is available on the Department of Legislative Services
website.
Exhibit 1
Admissions and Amusement Tax Revenues
County Tax Rates Revenues Per Capita Per Capita
County FY 2020 FY 2021 FY 2021 Revenues Ranking
Allegany 7.5% 7.5% $220,000 $3 11
Anne Arundel 10.0% 10.0% 5,800,000 10 5
Baltimore City 10.0% 10.0% 5,955,000 10 4
Baltimore 10.0% 10.0% 4,431,883 5 7
Calvert 1.0% 1.0% 25,000 0 21
Caroline 0.0% 0.0% 0 0 23
Carroll 10.0% 10.0% 350,000 2 12
Cecil 6.0% 6.0% 135,000 1 15
Charles 10.0% 10.0% 800,000 5 8
Dorchester 0.5% 0.5% 500 0 22
Frederick 0.0% 0.0% 0 0 23
Garrett 6.0% 6.0% 750,000 26 1
Harford 5.0% 5.0% 200,000 1 18
Howard 7.5% 7.5% 2,521,292 8 6
Kent 4.5% 4.5% 18,749 1 17
Montgomery 7.0% 7.0% 3,408,587 3 9
Prince George’s 10.0% 10.0% 9,923,200 11 3
Queen Anne’s 5.0% 5.0% 160,000 3 10
St. Mary’s 2.0% 2.0% 130,000 1 16
Somerset 4.0% 4.0% 15,000 1 19
Talbot 5.0% 5.0% 20,000 1 20
Washington 5.0% 5.0% 210,000 1 14
Wicomico 6.0% 6.0% 147,000 1 13
Worcester 3.0% 3.0% 620,000 12 2
Total $35,841,211 $6
Source: Fiscal 2021 County Budget Documents; Department of Legislative Services
Local Fiscal Effect: Local admissions and amusement tax revenues decrease by a
significant amount beginning in fiscal 2022. The amount of the revenue decrease cannot
be reliably estimated and depends on the number of businesses that qualify for the
exemption in each jurisdiction and the actual gross receipts of each exempt business. As
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noted, county governments expect to collect approximately $35.8 million in local
admissions and amusement taxes in fiscal 2021.
Garrett County indicates that if the exemption applies to skiing, golfing, boating, bike
rentals, and other sports-related activities, the county would lose almost all of its
admissions and amusement tax revenues, which are estimated at $750,000 in fiscal 2021.
Montgomery County projects an $80,000 revenue loss, just from an exemption for athletic
facilities.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Baltimore, Dorchester, Garrett, Howard, and Montgomery
counties; Maryland Association of Counties; Comptroller’s Office; Department of
Legislative Services
Fiscal Note History: First Reader - February 22, 2021
rh/hlb
Analysis by: Michael Sanelli Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 1079/ Page 4


Statutes affected:
Text - First - Admissions and Amusement Tax - Exemption - Activities That Promote Health and Physical Well-Being: 4-101 Tax General, 4-103 Tax General