The state admissions and amusement tax applies to the operation of electronic bingo machines permitted under a commercial bingo license, or to electronic tip jars authorized under Title 13 of the Criminal Law Article to be operated for commercial purposes.
Electronic bingo or electronic tip jars means a game played in an electronic or electro-mechanical device that contains predetermined winning and losing games and signals the issuance of a winning play. Examples include (but are not limited to):
- Electronic devices utilizing paper bingo or tip jar tickets.
- Electronic devices utilizing computer chips that simulate paper bingo or tip jar tickets that, when played by a customer, determine the outcome of winning or losing that is not random or subject to change, but is based on a predetermined set of winning or losing numbers.
Specifically exempt from the state admissions and amusement tax are electronic devices that dispense tip jar tickets and instant bingo tickets but do not alert the customer to a winning or losing ticket.
Tax Rates for Electronic Bingo Machines & Tip Jars
Effective June 1, 2009, electronic bingo machines and electronic tip jars are subject to a state admissions and amusement tax of thirty (30%) percent on the taxable net proceeds. Effective July 1, 2012, the State admissions and amusement tax imposed on electronic bingo and electronic tip jars in Calvert County is thirty-three (33%) percent. The State admissions and amusement tax rate remains at thirty (30%) percent for all other counties. The tax is in addition to any county or municipal admissions and amusement tax which may be levied. If the proceeds subject to tax are also subject to a county or municipal corporation tax, then the tax rate when combined must not exceed thirty-five (35%) percent.