Tax on Free Passes and Reduced Price Tickets Imposed in the City of Greenbelt

A review of the City of Greenbelt's most recently adopted admissions and amusement tax ordinance discloses that Greenbelt imposes a 5, 10 or 15-cent tax on free passes and reduced rate admissions. Admissions and amusement tax rate charts prepared on the basis of earlier resolutions did not reflect this tax. Beginning May 1, 1993, persons selling admissions in the City of Greenbelt are required to pay a 5, 10 or 15-cent tax on each free pass or reduced rate admissions sold. The 5, 10 and 15-cent taxes are to be reported on admissions and amusement tax returns as Type 35, 36 or 37 activities, respectively.

This tax is in addition to the 10% admissions and amusement tax imposed in the City of Greenbelt.

The additional tax on each free pass or reduced price admission is calculated as follows:

• if the regular prices is up to 50 cents - 5 cents tax;
• if the regular price is from 51 cents to $1.00 - 10 cents tax; and
• if the regular price is more than $1.00 - 15 cents tax.