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Maryland tax rate changes, August 2016


 Local tax rate changes take effect in Maryland on August 1, 2016.

Admissions and amusement tax in the Town of Snow Hill, Maryland will soon increase. The new rate of 5% (up from 2%) takes effect August 1, 2016.

Admissions and amusement tax

The admissions and amusement tax is imposed on gross receipts from the following:

  • Admissions
  • The sale of merchandise, refreshments or services at a night club or similar place of entertainment
  • The use or rental of recreational or sports equipment

This is a local tax, administrated by the Comptroller of Maryland for Baltimore City, counties, incorporated cities and towns, and the Maryland Stadium Authority. Rates vary by location and range from 1% to 10%.

Sales and use tax

Sales and use tax (state and local) is distinct from the admissions and amusement tax. Unless specifically exempt, the sale of tangible personal property and some services is subject to sales and use tax. Admissions and amusement tax may also apply.

Tax cap

The combined rate of tax on a sale subject to both sales and use tax and admissions and amusement tax is capped at 11%: gross receipts from sales of food and non-alcoholic beverages that are subject to the 6% sales and use tax are subject to a maximum admissions and amusement tax rate of 5%. Likewise, when the admissions and amusement tax and the 9% alcoholic beverages tax both apply to a transaction, the admissions and amusement tax rate must be capped at 2%, even if the jurisdiction normally imposes a higher admissions and amusement tax. Learn more.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.