EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0691*
SENATE BILL 691
Q4, Q8 3lr2150
CF 3lr2239
By: Senator King
Introduced and read first time: February 6, 2023
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Home Amenity Rentals – Sales and Use Tax Imposed and Local Tax Authorized 2
FOR the purpose of applying the sales and use tax to a sale or use of certain home amenity 3
rentals; authorizing a county or municipality to impose a certain home amenity 4
rental tax under certain circumstances and subject to certain limitations; and 5
generally relating to the taxation of home amenity rentals. 6
BY renumbering 7
Article – Tax – General 8
Section 11–101(c–6) through (c–8) 9
to be Section 11–101(c–10) through (c–12), respectively 10
Annotated Code of Maryland 11
(2022 Replacement Volume) 12
BY repealing and reenacting, without amendments, 13
Article – Tax – General 14
Section 11–101(a) and (l)(1) 15
Annotated Code of Maryland 16
(2022 Replacement Volume) 17
BY adding to 18
Article – Tax – General 19
Section 11–101(c–6) through (c–9) 20
Annotated Code of Maryland 21
(2022 Replacement Volume) 22
BY repealing and reenacting, with amendments, 23
Article – Tax – General 24
Section 11–101(k)(1), (l)(5) and (6), and (o)(1) 25
Annotated Code of Maryland 26
(2022 Replacement Volume) 27 2 SENATE BILL 691
BY adding to 1
Article – Local Government 2
Section 20–901 through 20–911 to be under the new subtitle “Subtitle 9. Local Home 3
Amenity Rental Tax” 4
Annotated Code of Maryland 5
(2013 Volume and 2022 Supplement) 6
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 7
That Section(s) 11–101(c–6) through (c–8) of Article – Tax – General of the Annotated Code 8
of Maryland be renumbered to be Section(s) 11–101(c–10) through (c–12), respectively. 9
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 10
as follows: 11
Article – Tax – General 12
11–101. 13
(a) In this title the following words have the meanings indicated. 14
(C–6) “HOME AMENITY” MEANS ANY PORTION , WHETHER INDOORS OR 15
OUTDOORS, OF A RESIDE NTIAL PROPERTY , EXCLUDING BEDROOMS O R ANY 16
PORTION OF THE PROPE RTY INTENDED FOR SLE EPING QUARTERS , THAT IS 17
OCCUPIED BY THE HOUR AND FOR NOT MORE THAN 15 HOURS CONSECUTIVELY . 18
(C–7) “HOME AMENITY RENTAL ” MEANS THE TEMPORARY USE IN EXCHANGE 19
FOR CONSIDERATION OF A HOME AMENITY. 20
(C–8) (1) “HOME AMENITY RENTAL INTER MEDIARY” MEANS A PERSON, 21
OTHER THAN A HOME AM ENITY RENTAL PROVIDE R, WHO FACILITATES THE SALE OR 22
USE OF A HOME AMENITY AND CHARGES A BUYER THE TAXABLE P RICE FOR THE 23
HOME AMENITY RENTAL . 24
(2) FOR PURPOSES OF THIS SUBSECTION, A PERSON SHALL BE 25
CONSIDERED TO FACILI TATE THE SALE OR USE OF A HOME AMENITY IF THE PERSO N 26
BROKERS, COORDINATES , OR IN ANY OTHER WAY ARRANGES FOR THE SALE OR USE 27
OF A HOME AMENITY BY A BUYER. 28
(C–9) “HOME AMENITY RENTAL PLATFORM” MEANS AN INTERNET–BASED 29
DIGITAL ENTITY THAT : 30
(1) ADVERTISES THE AVAIL ABILITY OF HOME AMENITIES; AND 31
SENATE BILL 691 3
(2) RECEIVES COMPENSATIO N FOR FACILITATING R ESERVATIONS OR 1
PROCESSING BOOKING T RANSACTIONS ON BEHAL F OF THE OWNER , OPERATOR, OR 2
MANAGER OF A HOME AMENITY. 3
(k) (1) “Tangible personal property” means: 4
(i) corporeal personal property of any nature; 5
(ii) an accommodation; [or] 6
(iii) a short–term rental; OR 7
(IV) A HOME AMENITY RENTAL . 8
(l) (1) “Taxable price” means the value, in money, of the consideration of any 9
kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the 10
consummation and complete performance of a sale without deduction for any expense or 11
cost, including the cost of: 12
(i) any labor or service rendered; 13
(ii) any material used; or 14
(iii) any property, digital code, or digital product sold. 15
(5) “Taxable price” includes[,]: 16
(I) for the sale or use of an accommodation facilitated by an 17
accommodations intermediary or a short–term rental platform, the full amount of the 18
consideration paid by a buyer for the sale or use of an accommodation, but not including 19
any tax that is remitted to a taxing authority; AND 20
(II) FOR THE SALE OR USE OF A HOME AMENITY RENTAL 21
FACILITATED BY A HOM E AMENITY RENTAL INTERMEDIARY OR HOME AMENITY 22
RENTAL PLATFORM , THE FULL AMOUNT OF C ONSIDERATION PAID BY A BUYER FOR 23
THE SALE OR USE OF A HOME AMENITY RENTAL, BUT NOT INCLUDING AN Y TAX THAT 24
IS REMITTED TO A TAX ING AUTHORITY. 25
(6) “Taxable price” does not include[,]: 26
(I) for the sale or use of an accommodation facilitated by an 27
accommodations intermediary or a short–term rental platform, a commission paid by an 28
accommodations provider to a person after facilitating the sale or use of an accommodation; 29
OR 30
4 SENATE BILL 691
(II) FOR THE SALE OR USE OF A HOME AMENITY RE NTAL 1
FACILITATED BY A HOM E AMENITY RENTAL INT ERMEDIARY OR HOME AM ENITY 2
RENTAL PLATFORM , A COMMISSION PAID BY A HOME AMENITY RENTA L PROVIDER 3
TO A PERSON AF TER FACILITATING THE SALE OR USE OF A HOM E AMENITY RENTAL . 4
(o) (1) “Vendor” means a person who: 5
(i) engages in the business of an out–of–state vendor, as defined in 6
§ 11–701 of this title; 7
(ii) engages in the business of a retail vendor, as defined in § 11–701 8
of this title; 9
(iii) holds a special license issued under § 11–707 of this title; 10
(iv) is an accommodations intermediary OR A HOME AMENITY 11
RENTAL INTERMEDIARY ; 12
(v) is a short–term rental platform OR HOME AMENITY RENT AL 13
PLATFORM ; 14
(vi) engages in the business of a marketplace facilitator; or 15
(vii) engages in the business of a marketplace seller. 16
Article – Local Government 17
SUBTITLE 9. LOCAL HOME AMENITY RENTAL TAX. 18
PART I. COUNTY HOME AMENITY RENTAL TAX. 19
20–901. 20
(A) IN THIS PART THE FOLLOW ING WORDS HAVE THE M EANINGS 21
INDICATED. 22
(B) “HOME AMENITY ” MEANS ANY PORTION , WHETHER INDOORS OR 23
OUTDOORS, OF A RESIDENTIAL PRO PERTY, EXCLUDING BEDROOMS O R ANY 24
PORTION OF THE PROPE RTY INTENDED FOR SLE EPING QUARTERS , THAT IS 25
OCCUPIED BY THE HOUR AND FOR NO T MORE THAN 15 HOURS CONSECUTIVELY . 26
(C) “HOME AMENITY RENTAL ” MEANS THE TEMPORARY USE IN EXCHANGE 27
FOR CONSIDERATION OF A HOME AMENITY . 28
SENATE BILL 691 5
(D) “HOME AMENITY RENTAL C HARGE” MEANS A CHARGE FOR A HOME 1
AMENITY RENTAL , EXCLUDING ANY CHARGE FOR SERVICES. 2
(E) “HOME AMENITY RENTAL T AX” MEANS THE TAX ON A H OME AMENITY 3
RENTAL CHARGE. 4
(F) “WESTERN MARYLAND CODE COUNTY ” MEANS A CODE COUNTY IN THE 5
WESTERN MARYLAND CLASS AS EST ABLISHED UNDER § 9–302 OF THIS ARTICLE. 6
20–902. 7
THIS PART APPLIES ON LY TO: 8
(1) A CHARTER COUNTY ; 9
(2) A CODE COUNTY ; 10
(3) CALVERT COUNTY; 11
(4) CARROLL COUNTY; 12
(5) CECIL COUNTY; 13
(6) GARRETT COUNTY; 14
(7) ST. MARY’S COUNTY; 15
(8) SOMERSET COUNTY; AND 16
(9) WASHINGTON COUNTY. 17
20–903. 18
(A) A COUNTY MAY IMPOSE, BY RESOLUTION , A HOME AMENITY RENTA L 19
TAX. 20
(B) (1) THIS SUBSECTION APPLI ES ONLY TO CALVERT COUNTY, 21
CHARLES COUNTY, AND ST. MARY’S COUNTY. 22
(2) THE GOVERNING BODY OF A COUNTY SHALL HOLD A PUBLIC 23
HEARING BEFORE IMPOS ING A HOME AMENITY R ENTAL TAX. 24
(3) THE HEARING: 25 6 SENATE BILL 691
(I) SHALL BE ADVERTISED TWICE IN A NEWSPAPER OF 1
GENERAL CIRCULATION IN THE COUNTY AT LEA ST 10 DAYS BEFORE THE HEAR ING; 2
AND 3
(II) MAY NOT BE PART OF T HE ANNUAL BUDGET HEA RING. 4
20–904. 5
(A) SUBJECT TO THIS SECTI ON, THE HOME AMENITY RENTAL TAX R ATE IS 6
THE RATE THAT THE CO UNTY SETS BY RESOLUT ION. 7
(B) THE HOME AMENITY RENT AL TAX RATE MAY NOT EXCEED: 8
(1) EXCEPT AS OTHERWISE PROVIDED IN THIS SEC TION, 1.5% IN A 9
CODE COUNTY ; 10
(2) 1.5% IN CECIL COUNTY; 11
(3) 2% IN TALBOT COUNTY; 12
(4) 2.5% IN CALVERT COUNTY, CARROLL COUNTY, CHARLES 13
COUNTY, DORCHESTER COUNTY, FREDERICK COUNTY, ST. MARY’S COUNTY, AND 14
SOMERSET COUNTY; 15
(5) 3% IN WICOMICO COUNTY; AND 16
(6) 4% IN GARRETT COUNTY. 17
(C) WITH THE UNANIMOUS CO NSENT OF THE COUNTY COMMISSIONERS : 18
(1) A CODE COUNTY OTHER THAN A WESTERN MARYLAND CODE 19
COUNTY MAY SET A HOM E AMENITY RENTAL TAX RATE UP TO 2.5%; AND 20
(2) A WESTERN MARYLAND CODE COUNTY MAY SET A HOME AMENI TY 21
RENTAL TAX RATE UP T O 4%. 22
(D) THE HOME AMENITY RENT AL TAX RATE IN WASHINGTON COUNTY IS 3%. 23
20–905. 24
SENATE BILL 691 7
TO PROVIDE FOR THE OR DERLY, SYSTEMATIC, AND THOROUGH 1
ADMINISTRATION OF TH E HOME AMENITY RENTA L TAX, A COUNTY MAY ADOPT 2
REGULATIONS THAT : 3
(1) ARE CONSISTENT WITH THIS PART; AND 4
(2) CONFORM TO THE APPLI CABLE PROVISIONS AND REGULATIONS 5
FOR THE SALES AND USE TAX UN DER TITLE 11 OF THE TAX – GENERAL ARTICLE. 6
20–906. RESERVED 7
20–907. RESERVED. 8
PART II. MUNICIPAL HOME AMENITY RENTAL TAX. 9
20–908. 10
THE DEFINITIONS IN § 20–901 OF THIS SUBTITLE APPLY IN THI S PART. 11
20–909. 12
(A) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , A 13
MUNICIPALITY MAY IMP OSE, BY ORDINANCE OR RESO LUTION, A HOME AMENITY 14
RENTAL TAX. 15
(B) A MUNICIPALITY MAY NOT IMPOSE A HOME AMENIT Y RENTAL TAX IF THE 16
MUNICIPALITY IS LOCA TED IN A COUNTY THAT DOES NOT IMPOSE A HOME AMENITY 17
RENTAL TAX UNDER THI S SUBTITLE. 18
20–910. 19
(A) SUBJECT TO SUBSECTION (B) OF THIS SECTION, A MUNICIPALITY SHALL 20
SET THE RATE OF THE HOME AME NITY RENTAL TAX . 21
(B) THE HOME AMENITY RENT AL TAX FOR A MUNICIP ALITY MAY NOT 22
EXCEED 1%. 23
20–911. 24
A MUNICIPALITY THAT IM POSES A HOME AMENITY RENTAL TAX MAY PROVI DE 25
FOR THE ADMINISTRATI ON AND COLLECTION OF THE TAX. 26
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 27
1, 2023. 28