Town Can’t Raise Tax On Bingo Machines
Town Can’t Raise Tax On Bingo Machines
Chesapeake Beach cannot increase its tax on electronic bingo machines, according to the Maryland attorney general’s office.
Assistant Attorney General had said this month that the town’s 0.5 percent tax rate on the machines could be increased. But after examining a bill approved by the General Assembly, she reversed her opinion May 19.
The increase in the state tax displeased several members of the Chesapeake Beach Town Council, who said that the town should be allowed to rise its tax on the machines. Based on its 0.5 percent tax rate, the town has planned $500,000 in revenue from the machines for the coming financial year.
The attorney general’s decision apparently will end the council members’ attempts to increase the local rate when the town budget is considered Tuesday.
“This is disappointing news, as I fully intended to amend the town budget to increase the amusement tax by a quarter of a point at our next meeting,” said Pat Mahoney, a council member.
That increase would have given the town an additional $750,000 in revenue over the next three years.
“The crying shame is that Chesapeake Beach has the lowest amusement tax rate in the state,” said Mahoney, who noted that Baltimore and Annapolis have a 10 percent amusement tax rate. He said he hopes the General Assembly will address the issue next year.
