Admissions and Amusement Tax and Sales and Use Tax - University of Maryland, College Park Athletic Competitions and Game Day Surcharge

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0945*

SENATE BILL 945
Q4, Q7, F2 6lr2363

By: Senator Charles
Introduced and read first time: February 6, 2026
Assigned to: Budget and Taxation

A BILL ENTITLED

AN ACT concerning 1

Admissions and Amusement Tax and Sales and Use Tax – University of 2
Maryland, College Park Athletic Competitions and Game Day Surcharge 3

FOR the purpose of imposing a State admissions and amusement tax on gross receipts 4
derived from certain admissions and amusement charges for admission to athletic 5
competitions held at the University of Maryland, College Park Campus; imposing a 6
supplemental surcharge on certain sales of food, alcoholic beverages, and 7
accommodations within a cer tain distance of the University of Maryland, College 8
Park Campus football stadium on certain days under certain circumstances ; 9
establishing the University of Maryland Athletic Department Support Fund as a 10
special, nonlapsing fund; and generally relating to the admissions and amusement 11
and sales and use taxes. 12

BY repealing and reenacting, without amendments, 13
Article – Tax – General 14
Section 1–101(a) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2025 Supplement) 17

BY repealing and reenacting, with amendments, 18
Article – Tax – General 19
Section 1–101(s), 2–202(a), 2–1303, and 11–102 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2025 Supplement) 22

BY adding to 23
Article – Tax – General 24
Section 4–102(g), 4–105(a–2), and 11–104(m) 25
Annotated Code of Maryland 26
(2022 Replacement Volume and 2025 Supplement) 27

2 SENATE BILL 945

BY adding to 1
Article – Education 2
Section 13–108 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2025 Supplement) 5

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7

Article – Tax – General 8

1–101. 9

(a) In this article the following words have the meanings indicated. 10

(s) (1) “Sales and use tax” means the tax imposed under Title 11 of this article. 11

(2) “Sales and use tax” includes: 12

(I) the tax imposed on the use of certain electricity under § 13
11–1A–01 of this article[.]; 14

[(3)] (II) [“Sales and use tax” includes] the hotel surcharge imposed under 15
§ 11–102(b) of this article; AND 16

(III) THE GAME DAY SURCHAR GE IMPOSED UNDER § 11–102(C) 17
OF THIS ARTICLE. 18

2–202. 19

(a) After making the distribution required under § 2 –201 of this subtitle, within 20
20 days after the end of each quarter, the Comptroller shall distribute: 21

(1) except as provided in subsections (b) and (c) of this section, from the 22
revenue from the State admissions and amusement tax on electronic bingo and electronic 23
tip jars under § 4–102(e) of this article: 24

(i) for fiscal years 2021 through 2025, the revenue attributable to a 25
tax rate of 20% to the Maryland E –Nnovation Initiative Fund under § 6 –604 of the 26
Economic Development Article; 27

(ii) for fiscal year 2026 and each fiscal year thereafter, the revenue 28
attributable to a tax rate of 20% as follows: 29

1. $8,500,000 to the Maryland E–Nnovation Initiative Fund 30
under § 6–604 of the Economic Development Article; and 31
SENATE BILL 945 3

2. the remainder to the General Fund of the State; and 1

(iii) for fiscal year 2021 and each fiscal year thereafter, the revenue 2
attributable to a tax rate of 5% as follows: 3

1. to the Maryland State Arts Council, as provided in § 4–512 4
of the Economic Development Article, $1,000,000 in each fiscal year; 5

2. to the Town of Chesapeake Beach, $300,000 in each fiscal 6
year; 7

3. to the Michael Erin Busch Sports Fund established under 8
§ 10–612.2 of the Economic Development Article, $500,000 in each fiscal year; and 9

4. the remainder to the Special Fund for Preservation of 10
Cultural Arts in Maryland, as provided in § 4 –801 of the Econo mic Development Article; 11
[and] 12

(2) THE REVENUE F ROM THE STATE ADMISSIONS AND AMUSEMENT 13
TAX ON ADMISSION TO ATHLETI C COMPETITIONS HELD AT THE UNIVERSITY OF 14
MARYLAND, COLLEGE PARK CAMPUS UNDER § 4–102(G) OF THIS ARTICLE TO THE 15
UNIVERSITY OF MARYLAND ATHLETIC DEPARTMENT SUPPORT FUND 16
ESTABLISHED UNDER § 13–108 OF THE EDUCATION ARTICLE; AND 17

(3) the remaining admissions and amusement tax revenue: 18

(i) to the Maryland Stadium Authority, county, or municipal 19
corporation that is the source of the revenue; or 20

(ii) if the Maryland Stadium Authority and also a county or 21
municipal corporation tax a reduced charge or free admission: 22

1. 80% of that revenue to the Authority; and 23

2. 20% to the county or municipal corporation. 24

2–1303. 25

After making the distributions required under §§ 2 –1301 through 2 –1302.5 of this 26
subtitle, the Comptroller shall pay: 27

(1) revenues from the hotel surcharge into the Dorchester County 28
Economic Development Fund established under § 10 –130 of the Economic Development 29
Article; 30

4 SENATE BILL 945

(2) REVENUE FROM THE GAM E DAY SURCHARGE IMPOSED UNDER § 1
11–102(C) OF THIS ARTICLE INTO THE UNIVERSITY OF MARYLAND ATHLETIC 2
DEPARTMENT SUPPORT FUND ESTABLISHED UNDER § 13–108 OF THE EDUCATION 3
ARTICLE; 4

(3) to the Blueprint for Maryland’s Future Fund established under § 5–206 5
of the Education Article, the following percentage of the remaining sales and use tax 6
revenues: 7

(i) for fiscal year 2023, 9.2%; 8

(ii) for fiscal year 2024, 11.0%; 9

(iii) for fiscal year 2025, 11.3%; 10

(iv) for fiscal year 2026, 11.7%; and 11

(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 12

[(3)] (4) the remaining sales and use tax revenue into the General Fund 13
of the State. 14

4–102. 15

(G) A STATE TAX IS IMPOSED ON THE GROSS RECEIPTS DERIVED FROM AN 16
ADMISSIONS AND AMUSE MENT CHARGE FOR ADMI SSION TO AN ATHLETIC 17
COMPETITION HELD AT THE UNIVERSITY OF MARYLAND, COLLEGE PARK CAMPUS. 18

4–105. 19

(A–2) THE RATE OF THE STATE ADMISSIONS AND AMUSEMENT TAX IMPOSED 20
ON AN ADMISSIONS AND AMUSEMENT CHARGE UNDER § 4–102(G) OF THIS SUBTITLE 21
IS 3% OF GROSS RECEIPTS SUBJECT TO THE ADMISSIONS AND AMUSEMENT TAX. 22

11–102. 23

(a) Except as otherwise provided in this title, a tax is imposed on: 24

(1) a retail sale in the State; and 25

(2) a use, in the State, of tangible personal property, a digital code, a digital 26
product, or a taxable service. 27

(b) (1) Subject to paragraph (2) of this subsection, in addition to the tax 28
imposed under subsection (a) of this section, a hotel surcharge is imposed in Dorchester 29
SENATE BILL 945 5

County on the sale of a right to occupy a room or lodgings as a transient guest in an 1
establishment that offers at least 380 rooms. 2

(2) The hotel surcharge imposed un der paragraph (1) of this subsection 3
may not be imposed if the Maryland Economic Development Corporation certifies to the 4
Comptroller that the bonds issued by the Maryland Economic Development Corporation 5
secured by the Dorchester County Economic Developme nt Fund established under § 6
10–130 of the Economic Development Article have been paid in full. 7

(c) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 8
MEANINGS INDICATED. 9

(II) 1. “ALCOHOLIC BEVERAGE S LICENSEE” MEANS THE 10
HOLDER OF A LICENSE UNDER TITLE 26 OF THE ALCOHOLIC BEVERAGES AND 11
CANNABIS ARTICLE. 12

2. “ALCOHOLIC BEVERAGES L ICENSEE” DOES NOT 13
INCLUDE A HOLDER OF A CLASS A LICENSE UNDER TITLE 26 OF THE ALCOHOLIC 14
BEVERAGES AND CANNABIS ARTICLE. 15

(III) “RESTAURANT” MEANS A BUSINESS ESTABLISHMENT: 16

1. THAT IS FOR THE ACCOMMODATION OF THE PUBLIC; 17

2. THAT HAS A PROPER AN D AN ADEQUATE DINING 18
ROOM AND SUFFICIENT FACILITIES FOR PREPARING AND SERVING MEALS; AND 19

3. WHOSE AVERAGE ANNUAL RECEIPTS FROM THE SALE 20
OF FOOD COMPRISE AT LEAST 25% OF THE AVERAGE RECEIPTS OF THE BUSINESS. 21

(2) THIS SUBSECTION APPLIES TO A SALE BY A VENDOR ON A DAY ON 22
WHICH A COLLEGE FOOTBALL GAME IS PLAYED AT THE FOOTBALL STADIUM ON THE 23
UNIVERSITY OF MARYLAND, COLLEGE PARK CAMPUS AND THE IMMEDIATELY 24
PRECEDING DAY IF THE VENDOR IS LOC ATED WITHIN A 3–MILE RADIUS OF THE 25
FOOTBALL STADIUM. 26

(3) IN ADDITION TO THE TA X IMPOSED UNDER SUBS ECTION (A) OF 27
THIS SECTION, A GAME DAY SURCHARGE IS IMPOSED ON THE SALE OF: 28

(I) FOOD BY A RESTAU RANT OR AN ALCOHOLIC BEVERAGES 29
LICENSEE; 30

(II) AN ALCOHOLIC BEVERAGE, AS DEFINED IN § 5–101 OF THIS 31
ARTICLE, BY AN ALCOHOLIC BEVERAGES LICENSEE; OR 32
6 SENATE BILL 945

(III) AN ACCOMMODATION. 1

(D) (1) A county, municipal corporation, special taxing district, or other 2
political subdivision of the State may not impose any retail sales or use tax except: 3

(i) a sales tax or use tax that was in effect on January 1, 1971; 4

(ii) a tax on the sale or use of: 5

1. fuels; 6

2. utilities; 7

3. space rentals; or 8

4. any controlled dangerous substance, as defined in § 5–101 9
of the Criminal Law Article, unless the sale is made by a person who registers under and 10
complies with Title 5, Subtitle 3 of the Criminal Law Article; or 11

(iii) a tax imposed by a code cou nty on the sale or use of food and 12
beverages authorized under § 20–602 of the Local Government Article. 13

(2) Paragraph (1) of this subsection may not be construed as conferring 14
authority to impose a sales and use tax. 15

11–104. 16

(M) THE RATE OF THE GAME DAY SURCHARGE IMPOSED UNDER § 11–102(C) 17
OF THIS SUBTITLE IS: 18

(1) EXCEPT AS PROVIDED I N ITEM (2) OF THIS SUBSECTION , 3% OF 19
THE TAXABLE PRICE; OR 20

(2) FOR A SALE OF AN ALC OHOLIC BEVERAGE, AS DEFINED UNDER § 21
5–101 OF THIS ARTICLE, 3% OF THE CHARGE FOR THE ALCOHOLIC BEVERAGE. 22

Article – Education 23

13–108. 24

(A) IN THIS SECTION , “FUND” MEANS THE UNIVERSITY OF MARYLAND 25
ATHLETIC DEPARTMENT SUPPORT FUND. 26

SENATE BILL 945 7

(B) THERE IS A UNIVERSITY OF MARYLAND ATHLETIC DEPARTMENT 1
SUPPORT FUND. 2

(C) THE PURPOSE OF THE FUND IS TO ENCOURAGE STUDENT–ATHLETES TO 3
ATTEND THE UNIVERSITY OF MARYLAND, COLLEGE PARK CAMPUS. 4

(D) THE FUND IS A SPECIAL, CONTINUOUS, NONLAPSING FUND THAT IS NOT 5
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 6

(E) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, AND THE 7
COMPTROLLER SHALL ACCOUNT FOR THE FUND. 8

(F) THE PROCEEDS OF THE FUND SHALL BE INVESTED AND REINVESTED. 9

(G) ANY INVESTMENT EARNINGS OF THE FUND SHALL BE CREDITED TO THE 10
GENERAL FUND OF THE STATE. 11

(H) THE FUND CONSISTS OF: 12

(1) ADMISSIONS AND AMUSEM ENT TAX REVENUE DIST RIBUTED TO 13
THE FUND IN ACCORDANCE WITH § 2–202 OF THE TAX – GENERAL ARTICLE; 14

(2) GAME DAY SURCHARGE REVENUE DISTRIBUTED TO THE FUND IN 15
ACCORDANCE WITH § 2–1303 OF THE TAX – GENERAL ARTICLE; 16

(3) ANY MONEY APPROPRIATED TO THE FUND; 17

(4) ANY FEDERAL GRANT FUNDS; AND 18

(5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 19
THE BENEFIT OF THE FUND. 20

(I) MONEY IN THE FUND MAY BE EXPENDED ONLY TO PROVIDE 21
SCHOLARSHIPS OR OTHE R FINANCIAL COMPENSATION TO STUD ENT–ATHLETES 22
WHO ARE ATTENDING THE UNIVERSITY OF MARYLAND, COLLEGE PARK CAMPUS. 23

(J) MONEY EXPENDED FROM THE FUND SHALL BE USED TO SUPPLEMENT, 24
NOT SUPPLANT, MONEY THAT THE ATHLETIC DEPARTMENT FOR THE UNIVERSITY 25
OF MARYLAND, COLLEGE PARK CAMPUS RECEIVES FROM OTHER SOURCES. 26

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2026. 28