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Boxing and Wrestling Tax

A Boxing or wrestling contest means a boxing, kick boxing, sparring, wrestling, or mixed martial arts contest, event, exhibition, or match.

The tax on a boxing or wrestling contest is remitted to the Comptroller's office on the Admissions and Amusement tax return.

The tax is imposed on gross receipts derived from:

  1. a charge for admission to a boxing or wrestling contest in the State; and
  2. a charge, by ticket or per event or occasion basis, to view a telecast of a boxing or wrestling contest in the State regardless of the origin of the telecast.
The boxing and wrestling tax does not apply to:
  1. an intercollegiate, interscholastic, or intramural boxing or wrestling contest held on the campus or under the auspices of a college, high school, or university in the State; or
  2. an amateur boxing or wrestling contest held under the auspices of the United States of America Amateur Boxing Federation or the Young Men's Christian Association.
The boxing and wrestling tax rate is:
  1. except as provided in subsection (b) of this section, for charges to view a telecast of a boxing or wrestling contest, 10% of the gross receipts;
  2. except as provided in item (3) of this subsection, for charges for admission to a boxing or wrestling contest, the greater of:
    1. 10% of the gross receipts; or
    2. $200; and
  3. for charges for admission to a boxing or wrestling contest, 5% of the gross receipts if the contest is conducted by:
    1. the Maryland National Guard; or
    2. in Allegany County, a post of the Veterans of Foreign Wars or the American Legion.

Mixed Martial Arts

House Bill 795 (Chapter 608, Acts of 2008) and Senate Bill 649

(Chapter 607, Acts of 2008) Athletics - Mixed Martial Arts - Regulation by State Athletic Commission - Boxing and Wrestling Tax

These Acts require an individual to be licensed by the State Athletic Commission in order to participate in a contest as a mixed martial arts contestant. The Commission shall adopt regulations to ensure the safety of individuals who participate in amateur or professional mixed martial arts contests.

This Act amends § 6-101 of the Tax-General Article to include a "mixed martial arts" contest in the definition of "boxing or wrestling contest." And pursuant to § 6-102, a tax is now extended to gross receipts derived from a charge for admission to mixed martial arts contests in Maryland, and from charges to view the telecast of mixed martial arts contests in Maryland regardless of the origin of the telecast.

This Act takes effect October 1, 2008.

Businesses that have never filed an admissions and amusement tax return must first register with the Comptroller of Maryland. You can register online or complete a Combined Registration Application which can be submitted by fax or mailed to the Comptroller's Office.

After completing registration, a Central Registration number will be assigned and an admissions and amusement tax return ("A&A") will be mailed for filing before the due date or the initial tax form can be obtained from the Comptroller's Web set bFile for businesses.

Electronically filing your return is more convenient since the tax due is automatically calculated after entering the required information and payment is scheduled for the due date after entering the appropriate bank direct debit information.

The A&A tax form requires a code for each subdivision and a code for each reportable activity by subdivision. Based on receipts entered by jurisdiction and activity, the tax due is determined. To obtain subdivision codes refer to the jurisdiction code and tax rate chart and for activity codes refer to the activity code chart. See sample return with instructions.

Mailed Returns

For subsequent filings, we will send you pre-coded forms that reflect the tax rates for activities you have previously reported. The due date is printed on the face of the return. Please use the pre-coded forms to file your tax report on the appropriate due date. The magnetic scan line at the bottom of the original form contains data we need to process your return. We cannot accept photocopies or computer-generated forms.

Electronic Filed Returns

Businesses have the option of using bFile, which includes a link to bServices for online filing and payment of their Admissions and Amusement tax return. Registration on bServices is required for filing the A&A tax return. Businesses currently using bFile to file withholding tax, sales tax returns and Bill Pay, will be familiar with the convenience of online filing and payment of A&A tax.

The following describes benefits of using online filing for A&A tax:

  • By entering your Central Registration number (registering as an A&A taxpayer is required), an electronic A&A tax return containing the most recent reported jurisdiction and activity codes is presented for entering gross receipts. The content of the electronic tax return is identical to the monthly mailed return.
  • Based on the entered gross receipts amounts, the tax due for each jurisdiction and activity is calculated by applying the appropriate tax rate. Updates to the electronic tax return can be made for changes to jurisdictions and activities.
  • The system calculates the total amount of tax due.
  • Payment of the tax is scheduled on the due date by a direct debit bank charge to a designated savings or checking bank account
This online filing application will not only provide an easier method for taxpayers to file and track their account history, but it will also help us to ensure timely and accurate posting of transactions. Our overall objective with this application is to promote an easier way to file and process your returns, and we hope that you will choose to take advantage of this new application.

One-Time Events

If you have a one-time event or fund-raiser such as a dance, show or concert, you may obtain a blank admissions and amusement tax form from the facility where the event is taking place. You can also obtain a form by calling our Special Events Section at 410-767-4638, Monday - Friday, 8:00 a.m. - 5:00 p.m. You must file the admissions and amusement tax form, together with any taxes due, by the tenth day of the month following the month in which the event occurred.

If you are planning events such as class reunions, carnivals, dances and shows at places other than regular facilities, like catering halls or convention centers, Contact us at least two weeks before the event at 410-767-1540 so that we can mail a blank admissions and amusement tax return in time to meet the filing deadline.

The admissions and amusement tax is imposed by county and municipal governments at varying rates up to 10 percent of gross receipts from taxable activities. If the gross receipts from the activity is also subject to the sales and use tax, the admissions and amusement tax is limited to 5 percent. Effective June 1, 2009, electronic bingo and electronic tip jars are subject to a state admissions and amusement tax of 30 percent, which is imposed on the net proceeds. Effective July 1, 2012, the State admissions and amusement tax imposed on electronic bingo and electronic tip jars in Calvert County is 33%. The State admissions and amusement tax rate remains at 30% for all other counties.

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. 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.

Admissions and amusement taxes which may be due for both the state of Maryland and a county or municipality for these specific activities must be noted on separate lines on the admissions and amusement tax return and may not be combined. The tax owed the state is the same whether calculated on a separately stated or tax-included basis.

Computing the Tax on a Tax-included Basis
To compute the admissions and amusement tax using receipts that already include the tax, follow this four-step process:

  • Step 1 - Convert the tax rate to a decimal and add 1.
  • Step 2 - Divide the total receipts by the number obtained in Step 1 to find taxable gross receipts.
  • Step 3 - Multiply the taxable gross receipts by the tax rate to find the tax.
  • Step 4 - Report the total mount of taxable gross receipts and the total amount of tax separately.
If a business in Baltimore County, where the rate is 10 percent, has receipts from tax-included admissions totaling $9,900 for the reporting period, the tax is computed as follows:
  • Step 1 - Convert the tax rate to a decimal and add 1: .10 + 1 = 1.10
  • Step 2 - Divide the total receipts by the number obtained in Step 1 to find taxable gross receipts: $9,900 ÷ 1.10 = $9,000
  • Step 3 - Multiply the answer to Step 2 by the tax rate to find the tax: $9,000 x 10% = $900
  • Step 4 - Report taxable gross receipts of $9,000 and tax of $900.

Regular Returns

The due date for regular admissions and amusement tax returns is printed on the face of the return.

One-Time Events

If you have a one-time event, the return and any taxes due must be filed by the tenth day of the month following the month in which the event occurred, as indicated in the chart below:

Month When Event Occurred Due Date for Return
January
February
March
February 10
March 10
April 10
April
May
June
May 10
June 10
July 10
July
August
September
August 10
September 10
October 10
October
November
December
November 10
December10
January 10

Late Returns

If you file your return late, it is subject to a penalty charge of 10 percent, plus interest. If you do not respond to a notice of or about an admissions and amusement tax return that has not been filed, an estimated tax due amount may be calculated and an additional penalty of 25 percent may be imposed.

Personal Liability

According to state law, the personal liability for the tax extends to any officer of a corporation who exercises direct control over the fiscal management of the corporation. If you owe an admissions and amusement tax debt, the state may also withhold your personal income tax refund.