BALTIMORE, MD (February 12, 2007) - Emphasizing his commitment to ensure that every business and individual pays their fair share in taxes, Maryland Comptroller Peter Franchot today announced that his staff is auditing video poker and other coin-operated amusement devices whose owners have not set up the proper state admissions and amusement tax accounts. The Comptroller was joined by Baltimore City Council President Stephanie Rawlings-Blake and Baltimore Councilwoman Mary Pat Clarke.
"I'm committed to making sure that Baltimore City and every local jurisdiction in the State gets the tax revenue they deserve to help pay for critical services," said Franchot. "I want to level the playing field and ensure that everyone pays their fair share."
Last fiscal year Baltimore City received more than $1.4 million in admissions and amusement tax collections from coin-operated amusement devices and a total of more than $8.5 million in total admissions and amusement taxes. Though the machines are often placed in local community stores or taverns, the responsibility to pay the tax is solely that of the machine's owner. It is the machine owner who holds the license and that is not necessarily the owner of the store or restaurant where the machine is placed. The admissions and amusement tax is collected by the Maryland Comptroller's Office; however, about 97 percent of the money goes back to the local jurisdictions.
"This is an opportunity to help alleviate the property tax burden placed on many city residents," said Council President Rawlings-Blake. "Collection of the amusement taxes owed to the city ensures that everyone pays their fair share, and city revenue for essential services is not solely put on the backs of working Baltimoreans."
Last fall, the Comptroller's Office sent letters to 116 individuals or businesses that were found to have city-issued licenses for machines, but did not have the proper tax accounts filed with the state. About 50 license holders responded to the first letter. Soon after taking office, Comptroller Franchot followed up with a second letter to those who had yet to respond. The deadline to set up the proper account was Thursday, Feb. 8. As of Friday, Feb. 9, there were 31 non-respondents.
Today, Comptroller's Office field auditors will begin visiting and inspecting the machines owned by the non-respondents. Each audit will depend on the type of machine and the amount of records kept by the license holder. Once the non-compliant taxpayers are audited, the Comptroller's Office will also audit some of the license holders who responded to ensure that the proper amount is being paid.
Contact: Joseph Shapiro, 410-260-7305
