Md. Code, Local Government § 20–602

(a) (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) (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) (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) 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) 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) 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) (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) (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) 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) (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) 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) (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.