Maryland 2024 Regular Session

Maryland House Bill HB916

Introduced
2/2/24  
Refer
2/2/24  
Report Pass
3/14/24  
Engrossed
3/18/24  

Caption

Garrett County - Hotel Rental Tax - Alterations

Impact

The alterations proposed in HB 916 are expected to have significant repercussions for local laws managing hotel operations and taxation. By making transient vacation rentals liable for hotel rental taxes, the legislation levels the playing field for different types of accommodations, ensuring that all operators contribute equally to local tax revenues. It also requires that short-term rental platforms perform specific duties related to tax collection and mandates penalties for non-compliance. This move is anticipated to increase state revenue derived from the tourism sector, particularly as Garrett County seeks to navigate its emerging market of transient rentals.

Summary

House Bill 916, titled 'Garrett County - Hotel Rental Tax - Alterations', aims to revise the existing legislation surrounding hotel rental taxes in Garrett County, Maryland. This bill expands the definition of 'hotel' to include transient vacation rental units, thus subjecting these accommodations to the same tax obligations as traditional hotels. Additionally, it alters specific definitions related to the 'transient charge', enhancing tax collection and compliance mechanisms for both hotel operators and short-term rental platforms. These changes are seen as a response to the increasing popularity of short-term rentals and the necessity to standardize tax applications across different types of lodging accommodations.

Sentiment

The sentiment surrounding HB 916 appears largely positive among legislators and stakeholders advocating for fair taxation within the local hospitality industry. Supporters argue that the revisions necessary for compliance will foster a more equitable marketplace, ensuring that all lodging providers are contributing to the county’s economy. However, there are concerns regarding the administrative burden placed on smaller rental operators and the complexities involved in tax collection for these platforms. This undercurrent of anxiety may signal potential pushback from some local operators who could view the new requirements as overly burdensome.

Contention

Notable points of contention include the precise definition of a 'hotel' and the criteria for tax compliance, which may impact various property owners and rental platforms differently. Furthermore, the added responsibilities for short-term rental platforms regarding tax remittance raise questions about enforcement and the potential for penalties on operators. As the bill progresses, discussions will likely focus on balancing the desire for revenue generation with the operational realities faced by local businesses.

Companion Bills

MD SB787

Crossfiled Garrett County - Hotel Rental Tax - Alterations

Previously Filed As

MD HB931

Eastern Shore Code Counties - Maximum Hotel Rental Tax Rate - Alteration

MD SB612

Eastern Shore Code Counties - Maximum Hotel Rental Tax Rate - Alteration

MD SB691

Home Amenity Rentals - Sales and Use Tax Imposed and Local Tax Authorized

MD HB1064

Home Amenity Rentals - Sales and Use Tax Imposed and Local Tax Authorized

MD HB905

Garrett County Alcoholic Beverages Act of 2023

MD SB821

Garrett County Alcoholic Beverages Act of 2023

MD HB648

Garrett County - Tax Sales - Auctioneer Fees

MD SB384

Garrett County – Tax Sales – Auctioneer Fees

MD HB211

Rental Housing Fund, Calculation of Taxable Income, and Transfer Tax - Alterations (Affordable Housing Investment Act)

MD HB203

Education - Reporting Arrests of Students - Alterations

Similar Bills

HI HB211

Relating To Transient Accommodations.

HI HB211

Relating To Transient Accommodations.

HI SB2053

Relating To The County Transient Accommodations Tax.

HI HB1450

Relating To The County Transient Accommodations Tax.

HI HB2606

Relating To Transient Accommodations.

HI SB1144

Relating To Transient Accommodations.

HI HB973

Relating To Transient Accommodations.

HI SB642

Relating To Taxation.