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Calculating the Admissions and Amusement Tax

The admissions and amusement tax is imposed by county and municipal governments at varying rates up to 10 percent of gross receipts from taxable activities. If the gross receipts from the activity is also subject to the sales and use tax, the admissions and amusement tax is limited to 5 percent. Effective June 1, 2009, electronic bingo and electronic tip jars are subject to a state admissions and amusement tax of 30 percent, which is imposed on the net proceeds. Effective July 1, 2012, the State admissions and amusement tax  imposed on electronic bingo and electronic tip jars in Calvert County is 33%. The State admissions and amusement tax rate remains at 30% for all other counties.

Unlike the sales and use tax, which is imposed on the person making the purchase, the admissions and amusement tax is imposed on the person or business receiving the taxable receipts. For this reason, you are not required to impose a separate charge on the consumer for this tax as you would to collect the sales tax.

Admissions and amusement taxes which may be due for both the state of Maryland and a county or municipality for these specific activities must be noted on separate lines on the admissions and amusement tax return and may not be combined. The tax owed the state is the same whether calculated on a separately stated or tax-included basis.

Computing the Tax on a Tax-included Basis

To compute the admissions and amusement tax using receipts that already include the tax, follow this four-step process:

Step 1 - Convert the tax rate to a decimal and add 1.
Step 2 - Divide the total receipts by the number obtained in Step 1 to find taxable gross receipts.
Step 3 - Multiply the taxable gross receipts by the tax rate to find the tax.
Step 4 - Report the total mount of taxable gross receipts and the total amount of tax separately.

If a business in Baltimore County, where the rate is 10 percent, has receipts from tax-included admissions totaling $9,900 for the reporting period, the tax is computed as follows:

Step 1 - Convert the tax rate to a decimal and add 1: .10 + 1 = 1.10
Step 2 - Divide the total receipts by the number obtained in Step 1 to find taxable gross receipts: $9,900 1.10 =  $9,000
Step 3 - Multiply the answer to Step 2 by the tax rate to find the tax: $9,000 x 10% = $900
Step 4 - Report taxable gross receipts of $9,000 and tax of $900.

 



 
Links for Filing Information
Business Tax Types
Admissions and Amusement Tax
Filing Information
  Admissions and Amusement Tax Due Dates
  Filing Methods
  Admissions and Amusement Tax Forms
  Instructions for Completing the Return
  Calculating the Admissions and Amusement Tax
  Political Subdivision and Activity Tax Codes
  Electronic Bingo and Tip Jars
  Sample Return
 
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