§ 20-602. Code counties -- Tax on food and beverages

   (a) Definitions. --

   (1) In this section the following words have the meanings indicated.

   (2) "Beverage" does not include an alcoholic beverage, as defined in § 5-101 of the Tax - General Article, if the alcoholic beverage is sold for consumption off the premises.

   (3) "Convention center facility" means a convention center of at least 150,000 net square feet that is used for the holding of conventions, trade shows, meetings, displays, entertainment shows, or similar events but does not have lodging facilities.

   (4) "Food" has the meaning stated in § 11-206 of the Tax - General Article.

   (5) "Premises" has the meaning stated in § 11-206 of the Tax - General Article.

   (6) "Public local law" has the meaning stated in Article XI-F, § 1 of the Maryland Constitution.

   (7) "Resort area" means any portion of a county, as specified by the county commissioners of the county, that:

      (i) by reason of natural, scenic, or man-made attractions or development, has an unusual influx of visitors, sojourners, and temporary residents; and

      (ii) by reason of the influx, requires municipal services in unusual number or magnitude.

   (8) "Substantial grocery or market business" has the meaning stated in § 11-206 of the Tax - General Article.

   (9) "Taxable price" has the meaning stated in § 11-101 of the Tax - General Article.

(b) In general. --

   (1) Except as otherwise provided in this section, the county commissioners of a code county, by public local law, may impose a tax on the sale of food and beverages in a resort area in the county for the sole purpose of providing revenues to pay the principal and interest on bonds issued relating to the construction, reconstruction, repair, renovation, or equipping of a convention center facility in the resort area.

   (2) The total oustanding principal amount of the bonds issued by the county commissioners for the purpose stated in paragraph (1) of this subsection may not exceed $ 20,000,000.

(c) Hearing and notice. --

   (1) Before passing a public local law imposing a tax under this section or altering the amount of the tax, the county commissioners shall hold a public hearing.

   (2) Notice of the hearing shall be published in at least one newspaper of general circulation in the county not less than 3 or more than 14 days before the hearing.

   (3) The notice shall state the subject of the hearing and the time and place that the hearing will occur.

(d) Exemptions. -- A tax imposed under this section does not apply to:

   (1) a sale of food that is exempt from the State sales and use tax under § 11-206 of the Tax - General Article;

   (2) a sale of food or beverages for consumption off the premises if sold by a vendor that operates a substantial grocery or market business at the same location where the food is sold, even if the sale is subject to the State sales and use tax under Title 11 of the Tax - General Article; or

   (3) a sale of food or beverages in a vending machine.

(e) Limit on tax. -- A tax imposed under this section may not exceed 1% of the taxable price of a sale of food or beverages that are subject to the tax.

(f) Collection. -- A tax imposed under this section shall be:

   (1) collected from the buyer on behalf of the county by the vendor who makes a sale that is subject to the tax; and

   (2) held in trust by the vendor for the county.

(g) Return. --

   (1) A vendor required to collect a tax imposed under this section shall file a return with the county on or before the 21st day of each month.

   (2) A return required under this section:

      (i) shall be made on the form that the county requires; and

      (ii) shall contain the information that the county requires, including:

         1. the gross proceeds of the vendor during the preceding month from sales that are subject to the tax;

         2. the taxable price of sales for the month on which the tax is computed; and

         3. the tax due.

(h) Remittance. --

   (1) A vendor who makes a sale that is subject to a tax imposed under this section shall pay the tax that the vendor collects for the sale with the return that covers the period in which the vendor makes the sale.

   (2) For the expense of collection and remittance of a tax imposed under this section, a vendor who timely files a return and remits the tax may deduct an amount equal to 1.5% of the gross tax collected by the vendor.

(i) Failure to pay tax. -- The county commissioners may provide by law for:

   (1) the imposition of interest and penalties for failure to pay the tax as required; and

   (2) collection of unpaid tax, interest, or penalties.

(j) Information from Comptroller. --

   (1) The Comptroller shall provide a county that imposes a tax under this section with information to help the county verify liability for the tax.

   (2) The Comptroller may charge a county a reasonable fee for the cost of providing information under this subsection.

(k) Distribution of revenue. -- From the total revenue derived from a tax imposed under this section, the county commissioners shall:

   (1) deduct a reasonable percentage not to exceed 5% for the cost of imposing and collecting the tax; and

   (2) after the deduction in item (1) of this subsection, distribute the revenue to the appropriate authority to be deposited in a sinking fund and used for the sole purpose of paying the principal and interest on bonds issued relating to a convention center facility in accordance with subsection (b) of this section.

(l) Termination of authority to impose tax. --

   (1) If any tax is imposed by the county commissioners of a county in accordance with this section, the authority to impose the tax in the county shall terminate at the end of the month in which sufficient revenues have been generated to pay in full the maturing principal of and interest on any bonds issued relating to a convention center in accordance with subsection (b) of this section.

   (2) The county commissioners shall notify the Comptroller as to the month in which the authority to impose the tax expires.

HISTORY: An. Code 1957, art. 25B, § 13H; 2013, ch. 119, § 2.