Admissions and Amusement Tax - Food and Beverages

HB 997 allows Maryland counties and municipalities to impose the admissions and amusement tax on the sale of food and beverages at locations where consumption occurs on the premises (such as restaurants, bars, and hotels). The bill sets a maximum tax rate for this tax and prohibits it on certain sales, including venues with only mechanical music or radio/TV, nonprofit events, and some charitable or religious activities. It also clarifies that the overall tax rate cap for local governments does not include this specific food and beverage tax. This bill directly affects local governments that choose to implement this tax and businesses selling food or beverages for on-site consumption.