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HB193: Gaming and Bingo

House Bill 193 (Chapter 661, Acts of 2009)

This Act adds new 4-801 to a new subtitle in the Economic Development Article. This new subtitle, "Subtitle 8. Special Fund for Preservation of the Cultural Arts in Maryland," provides for this special fund. This new fund is for the purpose of providing emergency grants to cultural arts organizations, including museums, or similar entities in the State. The Act provides that the Comptroller must account for the fund.

The Act also amends Tax-General Article 2-202 to provide for a new revenue distribution. The Act adds 2-202(1)(i) and (ii) to provide that after making the required distribution in 2-201 of the Tax-General Article, the Comptroller shall distribute specified amounts from the revenue from admissions and amusement tax on electronic bingo and electronic tip jars under 4-102(d). First, the Comptroller must distribute the revenue attributable to a tax rate of 20 percent to the General Fund and then the revenue attributable to a tax rate in excess of 20 percent to the Special Fund for Preservation of the Cultural Arts in Maryland. The remaining distribution schedule in 2-202(2) remains unchanged.

The Act also amends 4-105(a-1) of the Tax-General Article to provide that except as provided in new 4-105(a-1)(2), the rate of admissions and amusement tax imposed on electronic bingo or electronic tip jars under 4-102(d) is increased to 30 percent of the net proceeds subject to tax.

The Act adds new 4-105(a-1)(2) to the Tax-General Article, which provides that if net proceeds subject to the state admissions and amusement tax are also subject to a county or municipal corporation admissions and amusement tax, the total tax cannot exceed a rate of 35 percent when added together. The new 4-105(a-1)(2) also provides that the county or municipal corporation admissions and amusement tax that is applicable to net proceeds may not exceed the rate of the admission and amusement tax imposed by the county or municipal corporation as of January 1, 2009.

This Act also extends the termination date for the authority for the operating of certain instant bingo games using electronic machines from July 1, 2009 to July 1, 2012 provided that the machines have been in operation for a one-year period ending December 31, 2007 or that the machines were in operation under a commercial bingo license as of December 31, 2007. The Act also mandates that on or before July 1, 2012, a county or municipal corporation may not impose a fee or tax on electronic bingo in addition to any tax or fee imposed by the county as of January 1, 2009.

This Act takes effect June 1, 2009.

Links for 2009
Tax Law and Regulations
State Regulations
Legislative Summaries
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