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.
Net proceeds consist of the total receipts from the operation of the electronic bingo machines and electronic tip jars, less the amount of money winnings or prizes paid out to players.
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.
Taxpayers currently remitting admissions and amusement taxes on electronic bingo or electronic tip jars must report the taxable receipts and tax due for the new thirty (30%) percent state admissions and amusement tax on their return indicating the subdivision as "State of Maryland."
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 and may not be combined on the return. The net proceeds and tax due for electronic bingo should be reported under category 14 (bingo). The net proceeds and tax due for electronic tip jars should be reported under category 17 (coin operated amusement devices).
Businesses that are not currently registered to remit the tax must register with the Comptroller of Maryland. You can register online or complete a Combined Registration Application which can be submitted by fax or mail to the Comptroller's Office.
For more information, see Maryland Sales and Use Tax Bulletin 09-1 or contact Taxpayer Service at 410-767-1300 in the Baltimore area or toll-free 1-800-492-1751 from elsewhere in Maryland, Monday - Friday, 8:00 a.m. - 5:00 p.m. EST. See also Admissions and Amusement Tax Alert 11-07 and Admissions and Amusement Tax Update 1-08.