The gross receipts derived from an amount paid to become regularly entitled to the privileges of a club or other organization, as a member or otherwise, do not constitute an admissions and amusement charge subject to the tax, even though one of the privileges is the admission to a clubhouse, club grounds, hall, restaurant, hotel, or other similar place. If the sole privilege of a charge described as “dues” is a right of admission to certain performances or to a particular place on a definite number of occasions, the gross receipts derived from the charges for these privileges are admissions and amusement charges subject to the tax. The gross receipts derived from fees charged club members or nonmembers for the use of a golf course, tennis court, swimming pool, or something similar are subject to the tax if the charges are directly related to the usage of the facility or equipment. Except as provided in §B, below, the receipts derived from the sales of the sole right to use any place or the right to dispose of all the admissions to any place, are not subject to the tax. The person acquiring the right to use the facility is responsible for the payment of the tax on the gross receipts derived from the sale of any taxable admissions. The receipts derived from the use or rental of sporting or recreational facilities, such as a boat or tennis barn, in their entirety are subject to the tax unless the person leasing the facilities will also derive receipts by charging for the use of the same facilities. The lessor of the facilities is not liable for the tax on the lessor's receipts if the lessor can document that the lessee will charge for the use of the facilities and the lessor has notified the Comptroller of the proposed use in the form specified in COMAR 03.06.03.01. A person deriving gross receipts from admissions and amusement charges for admission is not liable for the tax on admissions for bona fide employees of the person if the employees receive free admission. If, however, a bona fide employee is admitted at a reduced rate, the person is responsible for the tax imposed on the gross receipts derived from the admission and the additional tax imposed on reduced charge admissions. A “bona fide employee” is a person whose admission to the place is required for the performance of some duty to, or work for, the person deriving the gross receipts. Charitable, Educational, or Religious Exemptions. The tax may not be imposed on gross receipts derived from any charge for admission or for merchandise, refreshments, or a service, if the gross receipts are used exclusively for a: Charitable, educational, or religious purpose; Volunteer fire company or nonprofit rescue squad; or Fraternal, service, or veterans organization chartered by a grant of Congress. In each instance, in determining whether the “exclusively” requirement is met, ordinary and reasonable expenses of operation, including the costs of merchandise or refreshments provided or sold, may be disregarded. The “exclusively” requirement is not met if any: Promoter, concessionaire operator, professional exhibitor, or entertainer is entitled to share in the gross receipts on any form of a percentage basis, including a minimum fee plus a percentage, whether the additional percentage fee is earned. Promoter, concessionaire operator, professional exhibitor, or entertainer is to be compensated on any other basis resulting in that individual's receiving substantially all of the gross receipts in excess of bona fide expenses paid to unrelated third parties. If a promoter, concessionaire operator, professional exhibitor, or entertainer is compensated from the gross receipts of an affair, the fact that the amount of money devoted to charitable, educational, or religious purposes is less than the applicable tax shall create a presumption that the “exclusively” requirement has not been met. Business promoter receives a substantial business benefit from an affair in the form of advertising, good will, or public acceptance. If not disqualified under §A(2)(a)—(c), above, and in the absence of other evidence to the contrary, the Comptroller shall presume that the gross receipts of any organization possessing an effective determination letter from the Internal Revenue Service as to qualification under the Internal Revenue Code, §§501(c)(3), (8), (10), or (19), qualify for exemption. The tax may not be imposed: On gross receipts derived from any charge for admission or for merchandise, refreshments, or a service, if the gross receipts are used exclusively for the improvement, maintenance, or operation of an agricultural fair, if the net earnings do not inure to the benefit of any stockholder or member of the association conducting the fair. On gross receipts derived from any charge for admission to a concert or theatrical event presented or offered by a not-for-profit group that is organized and operated: To present and offer an annual series of scheduled music concerts; or For a cultural purpose and receives a grant directly or indirectly from the Maryland State Arts Council. On gross receipts derived from the use of bowling alleys or lanes. The tax, however, may apply to the gross receipts of other activities at bowling alleys, including the gross receipts derived from rental of sports equipment, such as bowling shoes, and from coin-operated amusement devices. On gross receipts derived from amounts charged for admission to live boxing or wrestling matches. Closed circuit telecasts of live matches taking place within or outside this State are live matches for the purposes of this exemption. On gross receipts derived from amounts charged for admissions to, or use of, a charter fishing boat. In order for this exemption to apply, the fishing vessel shall have been hired by and for one specific person or group of people. The charges for admission to or for the use of a vessel which is not the subject of a charter, such as a head boat, do not qualify for the exemption. On gross receipts derived from any charge for admission to or use of a facility or equipment in connection with a bingo game that is operated in accordance with Criminal Law Article, §13-507, Annotated Code of Maryland. By Baltimore County on gross receipts of a not-for-profit community association that is organized and operated to promote the general welfare of the community that the association serves and the net earnings of which do not inure to the benefit of any stockholder or member of the association. By Calvert County, including Chesapeake Beach and North Beach, on gross receipts that are subject to the sales and use tax. By Washington County on gross receipts from an amusement device that is subject to the license and permit requirements of Article 24, §11-202, Annotated Code of Maryland. A county or incorporated city or town which has authorized the imposition of the tax may enact exemptions from the tax. Legislation specifically authorizing political subdivisions to enact particular exemptions does not limit the authority of political subdivisions to enact exemptions under such terms and conditions as they may see fit. Particular Exemptions Enacted by a County or Incorporated City or Town. The tax does not apply to the gross receipts: Of nonprofit community associations in Aberdeen, Anne Arundel County, Annapolis, Baltimore City, Calvert County, Howard County, Montgomery County (outside any municipality imposing the tax), Takoma Park, and Talbot County (outside any municipality imposing the tax); Derived by nonprofit associations organized to present any of the performing arts from admissions to concerts and theatrical events in Aberdeen, Anne Arundel County, Annapolis, Baltimore City, Gaithersburg, Greenbelt, Montgomery County (outside any municipality imposing the tax), Prince George's County (outside any municipality imposing the tax), and Takoma Park; Derived by nonprofit athletic organizations from admissions to athletic events in Anne Arundel County (outside the City of Annapolis); On admission charges if the additional tax of 5, 10, or 15 cents on free admission or reduced charge tickets is paid in Cecil County (outside any municipality, except North East, imposing the tax); Of a restaurant in Baltimore City and Hagerstown which provides for its patrons entertainment in the form of an individual roving performer who does not employ or is not dependent on amplified sound; and Of a nonprofit community swimming pool in Rockville; Derived from any activities in Caroline County (outside any municipality imposing the tax); Of the Town of Hampstead swimming pool; Derived by farmers from school tours of their facilities in Cecil County; Derived from Charles County owned and operated facilities; Derived from any sporting or athletic event held, sponsored, and operated by the Harford County Public School System or the Aberdeen Board of Parks and Recreation; Derived from any City of Gaithersburg municipal government operated or controlled functions, events, or activities, or upon the gross receipts derived from the operations or use of any municipal government facility; Derived from amounts charged for admission to a regional, amateur athletic tournament event in Prince George's County (outside any municipality imposing the tax) conducted under the auspices of a recognized amateur or intercollegiate association, excluding events which are part of a regular season schedule; Derived from the amounts charged for admission to an event in Prince George's County (outside any municipality imposing the tax) sanctioned by the United States Olympic Committee to select participants in the International Olympics or as part of the United States Olympic Festival; Derived from the amounts charged for farm recreational activities in Prince George's County (outside any municipality imposing the tax) which take place on the premises of working farms; and Derived from any activity in the Town of Hampstead subject to the sales and use tax. The additional tax of 5, 10 or 15 cents on free admissions or reduced charge tickets does not apply in Calvert County (outside any municipality imposing the tax), Hampstead, Perryville, Brunswick, Garrett County (outside any municipality, except Grantsville, imposing the tax), Aberdeen, Howard County, Chestertown, Rock Hall, Montgomery County (outside any municipality, except Chevy Chase (Section No. 4) and Gaithersburg, imposing the tax), Cheverly, Edmonston, Laurel, St. Mary's County (outside Leonardtown), Washington County (outside any municipality, except Boonsboro and Smithsburg, imposing the tax), Wicomico County (outside any municipality, except Fruitland, imposing the tax), and Snow Hill. Tax-General Article, §2-103, Annotated Code of Maryland Effective date: January 1, 1990 (16:25 Md. R. 2708) Regulation .05B amended effective January 14, 1999 (26:1 Md. R. 22)