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Frequently Asked Questions About Admissions and Amusement Tax

6 - Can you give me an example of computing the tax on a tax-included basis?

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 percent = $900
Step 4 - Report taxable gross receipts of $9,000 and tax of $900.


 
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Admissions and Amusement Tax
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Admissions and Amusement Tax FAQs
  q1 - How is the admissions and amusement tax imposed?
  q2 - Does this include the sales and use tax?
  q3 - How do I find out what rates apply to what activities?
  q4 - Do I have to make a separate charge for the admissions and amusement tax?
  q5 - Does the way in which I show the tax affect my remittance?
  q6 - Can you give me an example of computing the tax on a tax-included basis?
  q7 - What do I do if I'm presented with a tax exemption certificate?
  q8 - Are deductions permitted for prizes, cost of goods sold or other expenses?
  q9 - How are reduced charges or free admissions taxed?
  q10 - Does the 10 percent limit on the rate of tax also limit the additional tax on reduced charge or free admissions?
  q11 - Do I have to file a return even if I have no taxable receipts?
  q12 - What should I remember if I operate a lottery terminal?
  q13 - What should facility owners keep in mind?
  q14 - What should I keep in mind about correspondence?
  q15 - How do I change the name of my business for my tax records?
 
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