![]() intercollegiate athletic contests are well-attended and create a lot of school spirit on campus.the gross receipts are not used to pay for uniforms and equipment for intercollegiate athletics &.approximately 50 percent of the student population participates in come type of athletics.the field is not used solely for intercollegiate athletic events, but is also used for commencement, ROTC, club sports, intramural sports, recreational sports, and fitness &. ![]() the university-owned athletic field is available for use by all students and faculty, as well as the community.Below is a list of some of the factors presented for the Court ' s consideration: On the specific facts of this case, the Court determined that intercollegiate sports at Johns Hopkins University have educational benefits. In deciding that the gross receipts were used exclusively for an educational purpose and, therefore, not subject to the admissions and amusement tax, the Court considered the totality of the circumstances, taking into consideration who it concluded benefited from the gross receipts and how those benefits were derived. The admissions and amusement tax may not be imposed by a county or municipal corporation on the gross receipts:&…(4) derived from any charge for admission or for merchandise, refreshments, or a service, if the gross receipts are used exclusively for: (i) a charitable, educational, or religious purpose&… (emphasis added). Gross receipts from charges for admission to an intercollegiate athletic event are subject to the admissions and amusement tax unless they are used exclusively for an educational purpose. The Court took a fact specific approach to its determination. The Maryland Court of Special Appeals recently decided that gross receipts derived from admissions to intercollegiate athletic events at Johns Hopkins University were not subject to the admissions and amusement taxes. Tax RegulationsĪdmissions and Amusement Tax Law: Comptroller v. Also, the gross receipts from sales of tickets to political fund-raisers are not subject to tax. If all of the proceeds from an activity are donated to a charity, the gross receipts are exempt from the admissions and amusement tax. The only exception is in Anne Arundel County (outside of any municipality) where the cost of prizes in bingo games may be deducted before computing the tax. Generally, deductions for prizes, cost of goods sold and other expenses are not permitted since the admissions and amusement tax is a gross receipts tax and not an income tax permitting the deduction of expenses. ![]() Since the tax is imposed on the host of the activity rather than on the consumer, the exemption does not apply. ![]() For this reason, you are not required to impose a separate charge on the consumer for this tax as you would to collect the sales tax.Īlso unlike the sales and use tax, exemption certificates are not valid for the admissions and amusement tax. Unlike the sales and use tax, which is imposed on the person making the purchase, the admissions and amusement tax is imposed on the person or business receiving the taxable receipts. The new state admissions and amusement tax revenue on electronic bingo and electronic tip jars is directed to the state's general fund. The entire amount of the tax collected, less administrative expenses, is returned to the municipalities and counties imposing the local tax. The admissions and amusement tax is collected by the State Comptroller's Office. The tax is imposed by Maryland's counties and municipalities as well as an additional tax by the state of Maryland, specifically for electronic bingo and electronic tip jars. The local admissions and amusement tax is a tax on the gross receipts from admissions, the use or rental of recreational or sports equipment and the sale of merchandise, refreshments or service at a night club or similar place where entertainment is provided.
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