MD HB997

Counties and municipal corporations would be authorized to impose the admissions and amusement tax on gross receipts from the sale of food or beverages at establishments with on-premises consumption facilities

The maximum tax rate on food and beverage sales is capped at 3%, separate from the standard 10% maximum admissions and amusement tax rate

The new food and beverage tax would not count toward the 11% combined maximum when admissions and amusement tax overlaps with sales and use tax

Exemptions apply to alcoholic beverages sold for off-premises consumption, food/beverages sold at grocery or market businesses for off-premises consumption, and vending machine sales

Effective date: July 1, 2025