Robert L. Ehrlich, Jr. press release, September 14, 1999

MEWS FROM Robert L. Ehrlich, Jr Second Congressional District of Maryland 1 407 York Road, Suite 304 3 1 5 Cannon House Office Building Lutherville, Maryland 2 1 093 Washington, D.C. 205 1 5 FOR IMMEDIATE RELEASE: CONTACT: Jill Homan September 14, 1999 202/225-3061 CRABCAKES, COTTON CANDY, COWS, AND A TAX? WASHINGTON, D.C.- Congressman Robert L. Ehrlich, Jr. took action to prevent the Internal Revenue Service (IRS) from taxing county fairs. Ehrlich joined his colleague, Rep. David Camp (R-MI), in sponsoring H.R. 2640, The Tax Fairness for County Fairs Act of 1999. Currently, tax exempt fair buildings and grounds nationwide rent space in the off-season for storage of RV’s, trucks, boats, and trailers. Now, the IRS is claiming fairs are not actually “renting” space, and instead are acting as “parking garages.” Due to this distinction, all funds raised from this off-season rental of space would be taxable. Congressman Ehrlich stated, “Previously, the IRS defined fairs as tax exempt organizations, and therefore, never taxed them.” Ehrlich stressed, “In my view, this reinterpretation of the existing tax code is simply unfair. Not only is the practice of renting space at fairs not new, but also the fairs are not acting as parking garages- as the IRS now claims. If allowed to proceed unimpeded, it will directly and immediately affect many fairs, and potentially our own Maryland State Fair.”