(a) As authorized by Section 4-102(a)(1) of the Tax-General Article of the Maryland Code, a tax is imposed at a rate set by resolution adopted by the Council and approved by the Executive on the gross receipts derived from any admissions and amusement charge as defined in Section 4-101(b) of the Tax-General Article except to the extent this rate is limited by Section 4-105(b) of the Tax-General Article. If the Executive disapproves a resolution within 10 days after it is adopted and the Council readopts it by a vote of six Councilmembers, or if the Executive does not act within 10 days after the Council adopts it, the resolution takes effect.
(b) In addition to the exemptions listed in Section 4-103 of the Tax-General Article, the following gross receipts are exempt from this tax:
(1) gross receipts used exclusively for community or civic improvement by a not for profit community association as defined by Section 4-104(a) of the Tax-General Article;
(2) gross receipts from any charge for admission to a concert or theatrical event of a not for profit organization organized to present or offer any of the performing arts as defined by Section 4-104(b) of the Tax-General Article;
(3) gross receipts from any admissions and amusement charge by the County Board of Education or Montgomery College, or by any County, bi-county, or municipal government agency, including the Revenue Authority and the Maryland-National Capital Park and Planning Commission;
(4) gross receipts from any admissions and amusement charge levied by an arts and entertainment enterprise or qualifying residing artist in an arts and entertainment district designated under state law;
(5) gross receipts from any public daily fee golf course for which admission or a playing fee is charged; and
(6) gross receipts from any activity related to agricultural tourism for which admission is charged. Agricultural tourism means the act of visiting a farm, vineyard, winery, or orchard for entertainment, education, or participation in agricultural activities. Agricultural tourism does not include any activity at a County fair.
(c) Revenue from the admissions and amusement tax set at a rate of 7 percent or less may be used for General Fund purposes. Additional revenue generated from levying the tax at a higher rate must be used to support, encourage, and promote arts and humanities in the County, including projects, performances, historic and heritage preservation, and other activities that advance the artistic, cultural, and intellectual environment in the County. The Council must decide in the annual operating budget how these funds are administered. (Res. No. 7-832; Res. No. 7-1079; Res. No. 8-237; Res. No. 8-1975; Res. No. 12-431; 1999 L.M.C., ch. 8, § 1; 2002 L.M.C., ch. 1, § 1; 2004 L.M.C., ch. 7; 2007 L.M.C., ch. 9, § 1.)
Editor's note—Section 52-16A is cited in Comptroller of the Treasury v. Clyde's of Chevy Chase, 377 Md. 471, 833 A.2d 1014 (2003). In Twinbrook Swimming Pool Corp. v. Comptroller of the Treasury, Admissions Tax Division, 274 Md. 88, 333 A.2d 49 (1979), it was held that where a fee paid which is not related to the use of a swimming pool, i.e. where the same fee is paid regardless of the frequency of the use of the pool, is not subject to the above tax.