Ch. 416                            MARVIN MANDEL, Governor                                   873

CHAPTER 416

(Senate Bill 593)

AN ACT to repeal and re-enact, with amendments, Section 406 of Article 81 of
the Annotated Code of Maryland ([[1969 Replacement Volume]] 1972
Supplement), title "Revenue and Taxes," subtitle "Admissions and Amusement
Tax," to exempt from the admissions and amusement tax the gross receipts of
certain [[musical nonprofit groups or associations and certain nonprofit cultural
organizations, and to provide an effective date of June 1, 1973 for certain tax
returns.]] non-profit cultural [[or educational]] groups offering or presenting
various events or receiving certain grants.

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section 406 of Article 81 of the Annotated Code of
Maryland ([[1969 Replacement Volume]] 1972 Supplement), title "Revenue and
Taxes," subtitle "Admissions and Amusement Tax," be and it is hereby repealed
and re-enacted, with amendments, to read as follows:

406.

No tax shall be levied or collected under the provisions of Section 402 of this
article:

(1) Upon the gross receipts derived from the amounts charged for admissions or
refreshments, service and merchandise when such gross receipts are devoted
exclusively to charitable, religious or educational purposes or inure exclusively to
the benefit of a volunteer fire company or a nonprofit rescue squad, or to service,
fraternal or veterans' organizations, whose charters have been granted by the
Congress of the United States nor when such gross receipts inure to the benefit of
any agricultural fair, provided no part of the net earnings thereof inure to the
benefit of any stockholders or member of the association conducting the same and
provided the proceeds therefrom are used exclusively for the improvement,
maintenance and operation of such agricultural fair, nor upon gross receipts
derived from the amounts charged for admission and the use of sporting or
recreational facilities or equipment commonly described as "bingo" when such
bingo games are operated pursuant to §260 of Article 27 of the Annotated Code of
Maryland;

[[[]](2) UPON THE GROSS RECEIPTS OF NONPROFIT GROUPS OR
ASSOCIATIONS ORGANIZED TO PRESENT OR OFFER ANNUAL
SERIES OF SCHEDULED MUSICAL CONCERTS AND OF THOSE
NONPROFIT, CULTURAL ORGANIZATIONS WHICH RECEIVE
GRANTS THROUGH OR FROM THE MARYLAND ARTS COUNCIL OR
WHICH RECEIVE DIRECT APPROPRIATIONS OF STATE FUNDS
UNDER ARTICLE 41, §404(B) OF THE MARYLAND CODE THROUGH
THE MARYLAND ARTS COUNCIL, DERIVED FROM ADMISSIONS TO
CONCERTS AND THEATRICAL EVENTS, WHETHER BY A SINGLE
TICKET, SEASON TICKET OR SUBSCRIPTIONS; [[]]

[[(2) UPON THE GROSS RECEIPTS OF CULTURAL OR
EDUCATIONAL GROUPS, ASSOCIATIONS AND OTHER
ORGANIZATIONS WHICH ARE NON-PROFIT AND WHICH PRESENT
OR OFFER MUSICAL CONCERTS, DANCE RECITALS, THEATRICAL
EVENTS, MOTION PICTURE SHOWINGS, ART EXHIBITIONS, OR
SCIENTIFIC EVENTS DERIVED FROM ADMISSIONS TO SUCH
CONCERTS, RECITALS, SHOWINGS, EXHIBITIONS OR EVENTS,
WHETHER BY A SINGLE TICKET, SEASON TICKET OR
SUBSCRIPTIONS:]]