EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0979*
SENATE BILL 979
Q8 5lr0949
CF HB 1103
By: Senator Guzzone
Introduced and read first time: January 28, 2025
Assigned to: Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Local Government – Accommodations Intermediaries – Hotel Rental Tax 2
Collection by Comptroller 3
FOR the purpose of requiring certain accommodations intermediaries to collect and remit 4
the hotel rental tax to the Comptroller rather than to each county; providing for the 5
administration of the hotel rental tax by the Comptroller; providing that certain 6
provisions of State law prevail over certain local laws or agreements related to the 7
hotel rental tax; repealing the authority of certain counties to provide for certain 8
exemptions from the hotel rental tax; establishing certain requirements for certain 9
audits or investigations of an accommodations intermediary by the Comptroller; and 10
generally relating to requiring accommodations intermediaries to collect and remit 11
hotel rental taxes to the Comptroller. 12
BY repealing and reenacting, with amendments, 13
Article – Local Government 14
Section 20–401 through 20–404, 20–406 through 20–411, 20–413, 20–423, 20–425 15
through 20–428, 20–431, 20–432, 20–434, 20–436, and 20–603(b) 16
Annotated Code of Maryland 17
(2013 Volume and 2024 Supplement) 18
BY adding to 19
Article – Local Government 20
Section 20–402.1, 20–405(e), 20–407.1, and 20–433(c) 21
Annotated Code of Maryland 22
(2013 Volume and 2024 Supplement) 23
BY repealing and reenacting, without amendments, 24
Article – Local Government 25
Section 20–603(a) and (f) 26
Annotated Code of Maryland 27
(2013 Volume and 2024 Supplement) 28 2 SENATE BILL 979
BY repealing and reenacting, without amendments, 1
Article – Tax – General 2
Section 11–101(a), (a–3), (c–10), (j–3), and (o) 3
Annotated Code of Maryland 4
(2022 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Tax – General 7
Section 11–101(a–1), (a–2), (a–4), (j–2), and (l), 11–403(a), 13–201, and 13–302 8
Annotated Code of Maryland 9
(2022 Replacement Volume and 2024 Supplement) 10
BY adding to 11
Article – Tax – General 12
Section 11–502.3 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
The Public Local Laws of Howard County 17
Section 20.400 18
Article 14 – Public Local Laws of Maryland 19
(1977 Edition and October 2022 Supplement, as amended) 20
BY repealing and reenacting, with amendments, 21
The Public Local Laws of Prince George’s County 22
Section 10–218.01 23
Article 17 – Public Local Laws of Maryland 24
(2015 Edition and January 2018 Supplement, as amended) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
Article – Local Government 28
20–401. 29
(a) In this part the following words have the meanings indicated. 30
(B) (1) “ACCOMMODATION ” HAS THE MEANING STAT ED IN § 11–101 OF 31
THE TAX – GENERAL ARTICLE. 32
(2) “ACCOMMODATION ” INCLUDES THE RIGHT TO OCCUPY ANY OF 33
THE FOLLOWING AS A T RANSIENT GUEST : 34
SENATE BILL 979 3
(I) AN APARTMENT ; 1
(II) A COTTAGE; 2
(III) A HOSTELRY; 3
(IV) AN INN; 4
(V) A MOTEL; 5
(VI) A ROOMING HOUSE ; OR 6
(VII) A TOURIST HOME . 7
(C) “ACCOMMODATIONS INTERM EDIARY” HAS THE MEANING STATED I N § 8
11–101 OF THE TAX – GENERAL ARTICLE. 9
(D) “ACCOMMODATIONS PROVID ER” HAS THE MEANING STAT ED IN § 11–101 10
OF THE TAX – GENERAL ARTICLE. 11
(E) “BOOKING TRANSACTION” HAS THE MEANING STAT ED IN § 11–101 OF 12
THE TAX – GENERAL ARTICLE. 13
[(b)] (F) (1) “Hotel” means an establishment that offers sleeping 14
accommodations for compensation. 15
(2) “Hotel” includes: 16
(i) an apartment; 17
(ii) a cottage; 18
(iii) a hostelry; 19
(iv) an inn; 20
(v) a motel; 21
(vi) a rooming house; [or] 22
(vii) a tourist home; OR 23
(VIII) A SHORT–TERM RENTAL UNIT . 24
4 SENATE BILL 979
[(c)] (G) “Hotel rental tax” means the tax on [a transient charge] THE TAXABLE 1
PRICE PAID FOR A BOO KING TRANSACTION . 2
[(d) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this 3
paragraph, “transient charge” means a hotel charge for sleeping accommodations for a 4
period not exceeding 4 consecutive months. 5
(ii) In Carroll County, “transient charge” means a hotel charge for 6
sleeping accommodations for a period not exceeding 25 days. 7
(iii) In Frederick County, “transient charge” means a hotel charge for 8
sleeping accommodations for a period not exceeding 90 days. 9
(iv) In Garrett County and Washington County, “transient charge” 10
means a hotel charge for sleeping accommodations for a period not exceeding 30 days. 11
(2) “Transient charge” does not include any hotel charge for: 12
(i) services; or 13
(ii) accommodations other than sleeping accommodations.] 14
(H) “SHORT–TERM RENTAL UNIT ” HAS THE MEANING STAT ED IN § 11–101 15
OF THE TAX – GENERAL ARTICLE. 16
(I) “TAXABLE PRICE” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 17
GENERAL ARTICLE. 18
[(e)] (J) “Western Maryland code county” means a code county in the Western 19
Maryland class as established under § 9–302 of this article. 20
20–402. 21
(a) This part applies [only to: 22
(1) subject to subsection (b) of this section, a charter county; 23
(2) a code county; 24
(3) Calvert County; 25
(4) Carroll County; 26
(5) Cecil County; 27
(6) Garrett County; 28 SENATE BILL 979 5
(7) St. Mary’s County; 1
(8) Somerset County; and 2
(9) Washington County] TO EACH COUNTY IN THE STATE. 3
(b) To the extent this part conflicts with another law that applies to a [charter] 4
county, [the other law shall prevail over] this part SHALL PREVAIL OVER THE OTHER 5
LAW. 6
20–402.1. 7
THIS SUBTITLE APPLIES TO AN ACCOMMODATIONS INTERMEDIARY ONLY IF 8
THE ACCOMMODATIONS I NTERMEDIARY FACILITATES: 9
(1) BOOKING TRANSACTIONS OR SALES FOR USE OF AN 10
ACCOMMODATION IN THE STATE TOTALING $100,000 OR MORE IN THE PREVI OUS OR 11
CURRENT CALENDAR YEA R; OR 12
(2) 200 OR MORE BOOKING TRAN SACTIONS OR SALES FO R USE OF AN 13
ACCOMMODATION IN THE STATE IN THE PREVIOUS OR C URRENT CALENDAR YEAR . 14
20–403. 15
(a) Except as provided in § 20–404 of this subtitle, a county may impose, by 16
resolution, a hotel rental tax. 17
(b) (1) This subsection applies only to Calvert County, Charles County, and St. 18
Mary’s County. 19
(2) The governing body of a county shall hold a public hearing before 20
imposing a hotel rental tax. 21
(3) The hearing: 22
(i) shall be advertised twice in a newspaper of general circulation in 23
the county at least 10 days before the hearing; and 24
(ii) may not be part of the annual budget hearing. 25
(C) (1) SUBJECT TO SUBSECTION (D) OF THIS SECTION, TITLE 11 AND 26
TITLE 13, SUBTITLE 3 OF THE TAX – GENERAL ARTICLE AND THIS TITLE SHALL 27
PREVAIL TO THE EXTENT OF ANY CONFLICT WITH ANY LOCAL LAW, ORDINANCE, OR 28
RESOLUTION RELATING TO THE COUN TY HOTEL RENTAL TAX . 29 6 SENATE BILL 979
(2) ANY LOCAL LAW, ORDINANCE, OR RESOLUTION THAT I S 1
PREEMPTED UNDER PARA GRAPH (1) OF THIS SUBSECTION IS NOT REPEALED BUT 2
SHALL BE ADMINISTERE D IN CONFORMITY WITH STATE LAW. 3
(D) BEGINNING JANUARY 1, 2028, TITLE 11 AND TITLE 13, SUBTITLE 3 OF 4
THE TAX – GENERAL ARTICLE AND THIS TITLE SHALL PREVAIL TO THE EXTENT OF 5
ANY CONFLICT WITH AN AGREEMENT BETWEEN A COUNTY AND AN 6
ACCOMMODATIONS INTER MEDIARY. 7
20–404. 8
(a) The hotel rental tax does not apply to the sale of a right to occupy [a room or 9
lodgings] AN ACCOMMODATION as a transient guest at a dormitory or other lodging 10
facility that: 11
(1) is operated solely in support of the headquarters, a training facility, a 12
conference facility, an awards facility, or the campus of a corporation or other organization; 13
(2) provides lodging solely for employees, contractors, vendors, and other 14
invitees of the corporation that owns the dormitory or lodging facility; and 15
(3) does not offer lodging services to the general public. 16
[(b) By resolution, Calvert County and St. Mary’s County may provide a tax 17
exemption for classes of hotels. 18
(c) In Carroll County, the hotel rental tax does not apply to a hotel with 10 or 19
fewer sleeping rooms. 20
(d) Cecil County may impose the hotel rental tax only on a transient charge paid 21
to a hotel located in any part of Cecil County that: 22
(1) is specified by the governing body of Cecil County as a population 23
center; 24
(2) is not larger than 10 square miles in geographic area; and 25
(3) has a population of at least 6,000 residents. 26
(e) In Frederick County, the hotel rental tax does not apply to a hotel with: 27
(1) 10 or fewer sleeping rooms in its main building; and 28
(2) not more than 20 additional sleeping rooms in auxiliary structures on 29
the hotel’s property. 30 SENATE BILL 979 7
(f) In Washington County, the hotel rental tax does not apply to a transient 1
charge paid to a hotel by: 2
(1) the federal government; 3
(2) a state; or 4
(3) a unit or instrumentality of a state or the federal government.] 5
(B) A COUNTY MAY NOT IMPOS E A HIGHER TAX RATE ON THE SALE OF A 6
RIGHT TO OCCUPY A SH ORT–TERM RENTAL UNIT THA N IT IMPOSES ON THE RENTAL 7
OF ANY OTHER ACCOMMO DATION. 8
20–405. 9
(E) IF A COUNTY MODIFIES A HOTEL RENTAL TAX R ATE UNDER THIS 10
SECTION, THE COUNTY SHALL NOT IFY THE COMPTROLLER IN WRITIN G AT LEAST 60 11
DAYS BEFORE THE MODIFIED RATE TAKES EFFECT . 12
20–406. 13
(a) A hotel OR AN ACCOMMODATIONS PROVI DER shall: 14
(1) give a person who is required to pay a [transient charge] HOTEL 15
RENTAL TAX a bill that identifies the [transient charge] TAXABLE PRICE as an item 16
separate from any other charge; [and] 17
(2) collect the hotel rental tax from the person who pays the [transient 18
charge.] TAXABLE PRICE ; AND 19
[(b)] (3) [A hotel shall] hold any hotel rental tax collected in trust for the county 20
that imposes the tax until the hotel pays the tax to that county as required under this part. 21
(B) FOR BOOKING TRANSACTI ONS AND SALES FOR US E OF AN 22
ACCOMMODATION , AN ACCOMMODATIONS IN TERMEDIARY SHALL: 23
(1) GIVE A PERSON WHO IS REQUIRED TO PAY A HO TEL RENTAL TAX A 24
BILL THAT IDENTIFIES THE TAXABLE PRICE AS AN ITEM SEPARATE FROM ANY 25
OTHER CHARGE ; 26
(2) COLLECT THE HOTEL RE NTAL TAX FROM THE PE RSON WHO PAYS 27
THE TAXABLE PRICE ; AND 28
8 SENATE BILL 979
(3) HOLD ANY HOTEL RENTA L TAX COLLECTED IN T RUST FOR THE 1
COUNTY THAT IMPOSES THE TAX UNTIL THE ACCOMMODATIONS INTER MEDIARY 2
PAYS THE TAX TO THE COMPTROLLER IN ACCORD ANCE WITH § 11–502.3 OF THE TAX 3
– GENERAL ARTICLE. 4
20–407. 5
(A) A person shall pay the hotel rental tax to the hotel OR ACCOMMODATIONS 6
PROVIDER when the person pays the [transient charge] TAXABLE PRICE . 7
(B) A PERSON SHALL PAY THE HOTEL RENTAL TAX TO THE 8
ACCOMMODATIONS INTER MEDIARY WHEN THE PER SON PAYS THE TAXABLE PRICE 9
FOR A BOOKING TRANSA CTION FACILITATED BY THE ACCOMMODATIONS 10
INTERMEDIARY . 11
20–407.1. 12
(A) AN ACCOMMODATIONS INT ERMEDIARY SHALL COLL ECT THE HOTEL 13
RENTAL TAX UNDER THIS SUBTITLE ON A BOOKING TRANSACTIO N FOR AN 14
ACCOMMODATION IN THE STATE FACILITATED BY THE ACCOMMODATION S 15
INTERMEDIARY . 16
(B) AN ACCOMMODATIONS INT ERMEDIARY OR OTHER A PPROPRIATE PARTY 17
SHALL REFUND TO A BU YER THE PROPORTIONAT E AMOUNT OF THE HOTE L RENTAL 18
TAX THAT THE BUYER H AS PAID IF: 19
(1) A SALE IS RESCINDED OR CANCELED ; OR 20
(2) THE TAXABLE PRICE IS WHOLLY OR PARTIAL LY REPAID OR 21
CREDITED. 22
(C) AN ACCOMMODATIONS INT ERMEDIARY SHALL REPORT THE HOTEL 23
RENTAL TAX COLLECTED UNDER THIS SECTION S EPARATELY FROM THE S ALES AND 24
USE TAX COLLECTED BY THE ACCOMMODATIONS I NTERMEDIARY UNDER TITLE 11 25
OF THE TAX – GENERAL ARTICLE. 26
(D) AN ACCOMMODATIONS INT ERMEDIARY THAT FACIL ITATES A BOOKING 27
TRANSACTION FOR A BUYER ON BEHALF OF AN ACCOMMODATION S PROVIDER 28
SHALL: 29
(1) REMIT TO THE COMPTROLLER THE HOTEL RENTAL TAX UNDER 30
THIS SUBTITLE IN THE MANNE R AND ON THE FORM PR ESCRIBED BY THE 31
COMPTROLLER ; 32
SENATE BILL 979 9
(2) BE SOLELY LIABLE TO COLLECT THE HOTEL RE NTAL TAX FROM 1
THE BUYER FOR TRANSA CTIONS FACILITATED B Y THE ACCOMMODATIONS 2
INTERMEDIARY ; 3
(3) BE SUBJECT TO AUDIT , EXAMINATION , INVESTIGATION , AND 4
ASSESSMENT SOLELY BY THE COMPTROLLER UNDER TITLE 13 OF THE TAX – 5
GENERAL ARTICLE; AND 6
(4) BE ENTITLED TO THE PROCEDURAL RIGHT S SET FORTH UNDER 7
TITLE 13 OF THE TAX – GENERAL ARTICLE, INCLUDING THE RIGHT TO SEEK A 8
REFUND FOR THE OVERP AYMENT OF TAXES , THE RIGHT TO APPEAL A TAX 9
ASSESSMENT , AND THE RIGHT TO SEE K JUDICIAL REVIEW OF A DETERMINATION 10
MADE BY THE COMPTROLLER. 11
(E) (1) AN ACCOMMODATIONS PRO VIDER SHALL REMIT THE HOTEL 12
RENTAL TAX DUE ON A SALE OR BOOKING TRANSACTION THAT IS NOT FACILITA TED 13
BY AN ACCOMMODATIONS INTERMEDIARY TO THE COUNTY THAT I MPOSES THE TAX . 14
(2) (I) AN ACCOMMODATIONS PRO VIDER AND AN 15
ACCOMMODATIONS INTER MEDIARY MAY ENTER INTO AN AGREEMENT TO 16
DETERMINE THE PARTY THAT IS RESPONSIBLE FOR REMITTING THE HO TEL RENTAL 17
TAX TO THE COMPTROLLER IF EITHER PARTY IS A VENDOR IN THE STATE UNDER § 18
11–401 OF THE TAX – GENERAL ARTICLE. 19
(II) THE PARTY THAT AGREES TO REMIT THE TAX UND ER 20
SUBPARAGRAPH (I) OF THIS PARAGRAPH SHALL BE THE SOLE PA RTY HELD LIABLE 21
FOR THE COLLECTION A ND PAYMENT OF THE HOTEL RENTAL TAX . 22
20–408. 23
(A) A hotel OR AN ACCOMMODATIONS PROVIDER shall complete, sign, and file 24
a hotel rental tax return with: 25
(1) except as provided in item (2) of this section, a code county, on or before 26
the 10th day of each month; and 27
(2) (i) Cecil County, on or before the 10th day of each month; 28
(ii) Talbot County and Wicomico County, on or before the 20th day 29
of each month; 30
(iii) a code county in the Eastern Shore class established in § 9–302 31
of this article, Calvert County, Carroll County, Charles County, Dorchester County, 32
Frederick County, Garrett County, St. Mary’s County, and Somerset County, on or before 33
the 21st day of each month; and 34 10 SENATE BILL 979
(iv) Washington County, on or before the 25th day of each month. 1
(B) AN ACCOMMODATIONS INT ERMEDIARY SHALL FILE A HOTEL RENTAL 2
TAX RETURN WITH THE COMPTROLLER ON OR BEFORE THE 25TH DAY OF THE 3
MONTH. 4
(C) THE COMPTROLLER SHALL GRA NT A WAIVER FROM THE FILING OF A 5
HOTEL RENTAL TAX RETURN IF AN ACC OMMODATIONS PROVIDER THAT PROVIDES 6
ACCOMMODATIONS EXCLU SIVELY THROUGH AN AC COMMODATIONS INTERME DIARY: 7
(1) ATTESTS ON AN ANNUAL BASIS THAT BO OKING TRANSACTIONS 8
ARE FACILITATED BY THE ACCOMMODATIONS I NTERMEDIARY ; AND 9
(2) REQUESTS A WAIVER FR OM FILING THE HOTEL RENTAL TAX 10
RETURN REQUIRED UNDE R THIS TITLE. 11
20–409. 12
(A) [A] FOR A BOOKING TRANSAC TION THAT IS NOT FAC ILITATED BY AN 13
ACCOMMODATIONS INTER MEDIARY, A hotel rental tax return for a county: 14
(1) shall be made on the form that the county requires; and 15
(2) shall contain the information that the county requires, including the 16
amount of: 17
(i) [transient charges] TAXABLE PRICE paid to the hotel OR 18
ACCOMMODATIONS PROVI DER during the prior calendar month; and 19
(ii) the hotel rental tax required to be collected during the prior 20
calendar month. 21
(B) FOR A BOOKIN G TRANSACTION THAT IS FACILITATED BY AN 22
ACCOMMODATIONS INTER MEDIARY, THE HOTEL RENTAL TAX RET URN SHALL BE 23
FILED IN THE MANNER AND ON THE FORM THAT THE COMPTROLLER REQUIRES 24
UNDER § 11–502.3 OF THE TAX – GENERAL ARTICLE. 25
20–410. 26
(A) A hotel OR AN ACCOMMODATIONS PROVI DER shall pay to the county the 27
hotel rental tax collected for a calendar month with the return that covers that month. 28
SENATE BILL 979 11
(B) AN ACCOMMODATIONS INT ERMEDIARY SHALL PAY TO THE 1
COMPTROLLER THE HOTEL RENTAL TAX COLLECTED FOR A CALENDAR MONTH 2
WITH THE RETURN THAT COVERS THAT MONTH . 3
20–411. 4
(a) Except in Calvert County, Carroll County, Charles County, St. Mary’s County, 5
and Washington County, a hotel, AN ACCOMMODATIONS IN TERMEDIARY , OR AN 6
ACCOMMODATIONS PROVI DER is allowed, for administrative costs, a discount equal to 7
1.5% of the gross amount of hotel rental tax collected if, on or before the due date, the hotel, 8
ACCOMMODATIONS INT ERMEDIARY, OR ACCOMMODATIONS PR OVIDER: 9
(1) files the hotel rental tax return; and 10
(2) pays the hotel rental tax. 11
(b) In Calvert County, Carroll County, Charles County, St. Mary’s County, and 12
Washington County, the county commissioners may determine whether a hotel, AN 13
ACCOMMODATIONS INTER MEDIARY, OR AN ACCOMMODATIONS PROVIDER is eligible 14
to receive a discount. 15
20–413. 16
(a) The Comptroller shall: 17
(1) provide a county with information to help the county verify hotel rental 18
tax liability FOR THE HOTEL RENTAL TAX REM ITTED BY A HOTEL OR AN 19
ACCOMMODATIONS PROVI DER; 20
(2) ESTABLISH THE REMITT ANCE PROCESS FOR THE HOTEL RENTAL 21
TAX COLLECTED AND REMITT ED BY AN ACCOMMODATI ONS INTERMEDIARY ; 22
(3) ESTABLISH THE PROCES S FOR DISTRIBUTING TO EACH COUNTY 23
THE HOTEL RENTAL TAX REVENUE THAT IS COLLECTED FROM AN 24
ACCOMMODATIONS INTER MEDIARY; 25
(4) PUBLISH THE HOTEL RENTAL TAX RATE, FEES, OR SURCHARGES 26
IMPOSED ON AN ACCOMMODATION BY A C OUNTY OR A MUNICIPALITY UNDER THIS 27
SUBTITLE; 28
(5) DEVELOP A SINGLE RET URN FOR USE BY AN AC COMMODATIONS 29
INTERMEDIARY THAT AG GREGATES THE HOTEL RENTAL TAX THAT AN 30
ACCOMMODATIONS INTER MEDIARY IS REQUIRED TO COLLECT AND REMIT ; AND 31
12 SENATE BILL 979
(6) ADOPT REGULATIONS TO IMPLEMENT THIS PART . 1
(b) (1) The Comptroller may charge a county a reasonable fee for the cost of 2
providing information under this section. 3
(2) THE COMPTROLLER SHALL CHA RGE A COUNTY A REASO NABLE 4
FEE FOR THE ADMINIST RATIVE COSTS OF COLL ECTING THE HOTEL REN TAL TAX. 5
[(2)] (3) The county shall treat the fee as a hotel rental tax administrative 6
cost. 7
20–423. 8
A county shall make the distributions required under this part: 9
(1) between the 15th day and the 30th
day of each calendar month FOR 10
HOTEL RENTAL TAX COL LECTED FROM HOTELS O R ACCOMMODATIONS P ROVIDERS; 11
OR 12
(2) WITHIN 15 DAYS AFTER RECEIVING THE FUNDS FROM THE 13
COMPTROLLER FOR HOTEL RENTAL TAX COLLECTED FROM ACCOMMODATIONS 14
INTERMEDIARIES . 15
20–425. 16
(a) If a hotel, AN ACCOMMODATIONS PR OVIDER, OR AN ACCOMMODATIONS 17
INTERMEDIARY fails to pay the hotel rental tax as required under this part, the hotel, 18
ACCOMMODATIONS PROVI DER, OR ACCOMMODATIONS IN TERMEDIARY shall pay 19
interest on the unpaid tax from the date on which the hotel, ACCOMMODATIONS 20
PROVIDER, OR ACCOMMODATIONS IN TERMEDIARY is required to pay the tax to the date 21
that the tax is paid. 22
(b) The interest rate for each month or fraction of a month is: 23
(1) for Cecil County, Dorchester County, Talbot County, Washington 24
County, and Wicomico County, 1%; and 25
(2) for any other county, 0.5%. 26
20–426. 27
(a) Except in Talbot County or Wicomico County, if a hotel , AN 28
ACCOMMODATIONS PROVI DER, OR AN ACCOMMODATIONS INTERMEDIARY 29
REQUIRED TO COLLECT THE HOTEL RENTAL TAX fails to pay the hotel rental tax to a 30
county within 1 month after the payment is due under § 20–410 of this subtitle, the hotel, 31 SENATE BILL 979 13
ACCOMMODATIONS PROVI DER, OR ACCOMMODATIONS IN TERMEDIARY shall pay a tax 1
penalty of 10% of the unpaid tax. 2
(b) If a hotel, AN ACCOMMODATIONS PROVI DER, OR AN ACCOMMODATIONS 3
INTERMEDIARY REQUIRE D TO COLLECT THE HOTEL RENTAL TAX fails to pay the hotel 4
rental tax to Talbot County or Wicomico County within 120 days after the payment is due 5
under § 20–410 of this subtitle, the hotel, ACCOMMODATIONS PROVI DER, OR 6
ACCOMMODATIONS INTER MEDIARY shall pay a tax penalty of 10% of the unpaid tax. 7
20–427. 8
(a) A county may file a civil action to collect unpaid hotel rental tax FROM A 9
HOTEL OR AN ACCOMMODATIONS PROVI DER ON BOOKING TRANSACTIONS NOT 10
FACILITATED BY AN ACCOMMODATIONS INTER MEDIARY. 11
(b) A county may collect unpaid hotel rental tax by distraint FROM A HOTEL OR 12
AN ACCOMMODATIONS PROVI DER ON BOOKING TRANSACTIONS NOT FACILITATED 13
BY AN ACCOMMODATIONS INTER MEDIARY. 14
(c) Except in Calvert County and St. Mary’s County, unpaid hotel rental tax is: 15
(1) a lien against the real and personal property of the person owing the 16
tax; and 17
(2) collectible in the same manner as the property tax may be collected 18
under the Tax – Property Article. 19
(D) (1) THE COMPTROLLER MAY FILE A CIVIL ACTION TO CO LLECT 20
UNPAID HOTEL RENTAL TAX FROM AN ACCOMMOD ATIONS INTERMEDIARY ON 21
BOOKING TRANSACTIONS FACILITATED BY THE A CCOMMODATIONS INTERM EDIARY. 22
(2) THE COMPTROLLER MAY COLLE CT UNPAID HOTEL RENT AL TAX 23
BY DISTRAINT FROM AN ACCOMMODATIONS INTER MEDIARY ON BOOKING 24
TRANSACTIONS FACILITATED BY THE ACCOMMODATION S INTERMEDIARY . 25
20–428. 26
(a) (1) Subject to paragraph (2) of this subsection, to protect hotel rental tax 27
revenue, a county may require a hotel OR AN ACCOMMODATIONS PROVI DER to file 28
security with the county in an amount that the county determines. 29
(2) Cecil County, Talbot County, and Wicomico County may require 30
security under this section only for a hotel OR AN ACCOMMODATIONS PROVIDER that 31
has been in default. 32
14 SENATE BILL 979
(b) Security under this section shall be: 1
(1) a bond issued by a surety company that is: 2
(i) authorized to do business in the State; and 3
(ii) approved by the Insurance Commissioner as to solvency and 4
responsibility; 5
(2) cash; or 6
(3) security approved by the county. 7
(c) (1) If security is required under this section, the county shall give the hotel 8
OR ACCOMMODATIONS PR OVIDER notice of the amount of security. 9
(2) Within 5 days after a hotel OR AN ACCOMMODATIONS PROVI DER 10
receives notice that security is required, the hotel OR ACCOMMODATIONS PROVI DER 11
shall: 12
(i) file the security; or 13
(ii) submit a written request for a hearing on the security 14
requirement. 15
(d) (1) If a hearing is requested under subsection (c) of this section, the county 16
shall hold a hearing to determine the necessity, propriety, and amount of the security. 17
(2) (i) The determination at the hearing is final. 18
(ii) The hotel OR ACCOMMODATIONS PR OVIDER shall comply 19
within 15 days after the hotel OR ACCOMMODATIONS PR OVIDER receives notice of the 20
determination. 21
(e) Without notice to the hotel OR ACCOMMODATIONS PR OVIDER that files 22
security under subsection (b)(2) or (3) of this section, the county at any time may: 23
(1) apply the cash to the hotel rental tax due; or 24
(2) sell the security and apply the proceeds of the sale to the hotel rental 25
tax due. 26
20–431. 27
(a) In this part the following words have the meanings indicated. 28
SENATE BILL 979 15
(B) (1) “ACCOMMODATION ” HAS THE MEANING STAT ED IN § 11–101 OF 1
THE TAX – GENERAL ARTICLE. 2
(2) “ACCOMMODATION ” INCLUDES THE RIGHT TO OCCUPY ANY OF 3
THE FOLLOWING AS A T RANSIENT GUEST : 4
(I) AN APARTMENT ; 5
(II) A COTTAGE; 6
(III) A HOSTELRY; 7
(IV) AN INN; 8
(V) A MOTEL; 9
(VI) A ROOMING HOUSE ; OR 10
(VII) A TOURIST HOME . 11
(C) “ACCOMMODATIONS INTERM EDIARY” HAS THE MEANING STAT ED IN § 12
11–101 OF THE TAX – GENERAL ARTICLE. 13
(D) “ACCOMMODATIONS PROVID ER” HAS THE MEANING STAT ED IN § 11–101 14
OF THE TAX – GENERAL ARTICLE. 15
(E) “BOOKING TRANSACTION ” HAS THE MEANING STAT ED IN § 11–101 OF 16
THE TAX – GENERAL ARTICLE. 17
[(b)] (F) “Hotel” has the meaning stated in § 20–401 of this subtitle. 18
[(c)] (G) “Hotel rental tax” [means the tax on a transient charge] HAS THE 19
MEANING STATED IN § 20–401 OF THIS SUBTITLE . 20
[(d) (1) “Transient charge” means a hotel charge for sleeping accommodations 21
for a period not exceeding 4 consecutive months. 22
(2) “Transient charge” does not include any hotel charge for: 23
(i) services; or 24
(ii) accommodations other than sleeping accommodations.] 25
16 SENATE BILL 979
(H) “SHORT–TERM RENTAL UNIT ” HAS THE MEANING STAT ED IN § 11–101 1
OF THE TAX – GENERAL ARTICLE. 2
(I) “TAXABLE PRICE” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 3
GENERAL ARTICLE. 4
20–432. 5
(a) Except as provided in subsections (b) [and (c)], (C), AND (D) of this section, a 6
municipality may impose, by ordinance or resolution, a hotel rental tax. 7
(b) (1) In this subsection, “hotel rental tax revenue sharing arrangement” 8
includes: 9
(i) a requirement under §§ 20–415 through 20–422 of this subtitle 10
that a county distribute revenue from a county hotel rental tax to a municipality; or 11
(ii) any other hotel rental tax revenue sharing requirement, 12
agreement, or arrangement between a county and a municipality. 13
(2) A municipality in a county that has a hotel rental tax revenue sharing 14
arrangement between the municipality and the county may not impose a hotel rental tax 15
under this part. 16
(c) A municipality may not impose a hotel rental tax if the municipality is 17
located in a county that: 18
(1) distributes at least 50% of total county hotel rental tax revenues to 19
promote tourism in the county; or 20
(2) does not impose a tax on [a transient charge] THE TAXABLE PRICE 21
paid to a hotel OR AN ACCOMMODATIONS PROVIDER. 22
(D) A MUNICIPALITY MAY NOT : 23
(1) IMPOSE A TAX ON THE RENTAL OF AN ACCOMMODATION , 24
INCLUDING A SHORT –TERM RENTAL , EXCEPT AS AUTHORIZED UNDER THI S SECTION; 25
OR 26
(2) IMPOSE A HIGHER TAX RATE ON SHORT –TERM RENTAL UNITS 27
THAN ON OTHER ACCOMM ODATIONS. 28
20–433. 29
SENATE BILL 979 17
(C) IF A MUNICIPALITY MOD IFIES A HOTEL RENTAL TAX RATE UNDER THIS 1
SECTION, THE MUNICIPALITY SHA LL NOTIFY THE COMPTROLLER IN WRITIN G AT 2
LEAST 60 DAYS BEFORE THE MODI FIED RATE TAKES EFFE CT. 3
20–434. 4
(A) [A] EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION , A 5
municipality that imposes a hotel rental tax may: 6
(1) provide for the administration and collection of the tax; AND 7
(2) [provide for additional exemptions from the tax; and 8
(3)] impose penalties for failure to collect, report, or pay the tax. 9
(B) THE COMPTROLLER SHALL COLLECT THE MUNICIPA L HOTEL RENTAL 10
TAX FROM ACCOMMODATIONS INTERMEDIARIES IN THE SAME MANNER A S THE 11
COUNTY HOTEL RENTAL TAX UND ER THIS SUBTITLE. 12
(C) (1) SUBJECT TO SUBSECTION (D) OF THIS SECTION , TITLE 11 AND 13
TITLE 13, SUBTITLE 3 OF THE TAX – GENERAL ARTICLE AND THIS TITL E SHALL 14
PREVAIL TO THE EXTEN T OF ANY CONFLICT WI TH ANY LOCAL LAW , ORDINANCE, OR 15
RESOLUTION RELATING TO A MUNICI PAL HOTEL RENTAL TAX . 16
(2) ANY LOCAL LAW , ORDINANCE, OR RESOLUTION THAT I S 17
PREEMPTED UNDER PARAGRAPH (1) OF THIS SUBSECTION I S NOT REPEALED BUT 18
SHALL BE ADMINISTERE D IN CONFORMITY WITH STATE LAW. 19
(D) BEGINNING JANUARY 1, 2028, TITLE 11 AND TITLE 13, SUBTITLE 3 OF 20
THE TAX – GENERAL ARTICLE AND THIS TITL E SHALL PREVAIL TO T HE EXTENT OF 21
ANY CONFLICT WITH AN AGR EEMENT BETWEEN A MUN ICIPALITY AND AN 22
ACCOMMODATIONS INTER MEDIARY. 23
(E) THE COMPTROLLER SHALL GRA NT A WAIVER FROM THE FILING OF A 24
HOTEL RENTAL TAX RETURN IF AN ACC OMMODATIONS PROVIDER THAT PROVIDES 25
ACCOMMODATIONS EXCLU SIVELY THROUGH AN ACCOMMODATIONS IN TERMEDIARY : 26
(1) ATTESTS ON AN ANNUAL BASIS THAT BOOKING T RANSACTIONS 27
ARE FACILITATED BY THE ACCOMMODATIONS I NTERMEDIARY ; AND 28
(2) REQUESTS A WAIVER FR OM FILING THE HOTEL RENTAL TAX 29
RETURNS REQUIRED UND ER THIS SUBTITLE. 30
18 SENATE BILL 979
(F) AN ACCOMMODATIONS PRO VIDER IS LIABLE FOR HOTEL RENTAL TAXES 1
ON ANY BOOKING TRANS ACTION NOT FACILITAT ED BY AN ACCOMMODATI ONS 2
INTERMEDIARY . 3
20–436. 4
If a county has the authority under Part I of this subtitle or any other law to impose 5
a HOTEL RENTAL tax [on transient charges paid to hotels,] to accommodate a HOTEL 6
RENTAL tax imposed under this part by a municipality, the county may impose a HOTEL 7
RENTAL tax rate [on transient charges paid to hotels located] in the municipality that is 8
lower than the HOTEL RENTAL tax rate imposed [on transient charges paid to hotels] 9
outside the municipality. 10
20–603. 11
(a) By ordinance, Anne Arundel County may impose a sales or use tax on: 12
(1) fuel and utilities used by commercial and industrial businesses; 13
(2) residential, commercial, and industrial telephone service; and 14
(3) space rentals other than space rentals for the docking or storing of 15
boats. 16
(b) (1) Any revenues collected under subsection (a)(1) and (2) of this section in 17
the City of Annapolis shall be allocated and distributed in equal amounts to the City of 18
Annapolis and to Anne Arundel County. 19
(2) Except as otherwise provided in this subsection, any revenue generated 20
in the City of Annapolis from the tax on space rentals shall be collected and retained by the 21
City of Annapolis. 22
(3) Except as provided in [paragraph] PARAGRAPHS (6) AND (7) of this 23
subsection, any revenue generated in the City of Annapolis from the hotel tax shall be 24
collected by Anne Arundel County. 25
(4) From any revenue generated in the City of Annapolis from the hotel 26
tax, Anne Arundel County shall distribute: 27
(i) 3% to a special fund to be used only to provide funds to the 28
Annapolis Art in Public Places Commission; 29
(ii) 3% to a special fund to be used only to provide funds to the Arts 30
Council of Anne Arundel County, Inc.; 31
SENATE BILL 979 19
(iii) 17% to a special fund to be used only to provide funds to the 1
Annapolis and Anne Arundel County Conference and Visitors Bureau; and 2
(iv) 3% to the Affordable Housing Trust Fund established under § 3
20.30.070 of the Code of the City of Annapolis to be used only for housing assistance 4
payments. 5
(5) After making the distributions required under paragraph (4) of this 6
subsection, the balance of the revenue generated in the City of Annapolis from the hotel 7
tax shall be distributed to the City of Annapolis. 8
(6) (i) Anne Arundel County may authorize the City of Annapolis to 9
collect revenue generated in the City of Annapolis from the hotel tax. 10
(ii) If Anne Arundel County authorizes the City of Annapolis to 11
collect revenue generated in the City of Annapolis from the hotel tax, the City of Annapolis 12
shall distribute a percentage of the revenue in accordance with paragraph (4) of this 13
subsection and retain the balance of the revenue generated. 14
(7) THE COMPTROLLER SHALL : 15
(I) COLLECT THE HOTEL TA X IMPOSED UNDER SUBSECTION 16
(A)(3) OF THIS SECTION FROM ACCOMMODATIONS INTERMEDIARIES IN TH E MANNER 17
PRESCRIBED IN SUBTITLE 4 OF THIS TITLE AND TITLE 11 OF THE TAX – GENERAL 18
ARTICLE; AND 19
(II) DISTRIBUTE THE HOTEL TAX REVENUE IN THE M ANNER 20
PRESCRIBED IN THIS SUBSECTION . 21
(f) The hotel tax authorized under this section does not apply to the sale of a right 22
to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility 23
that: 24
(1) is operated solely in support of the headquarters, a training facility, a 25
conference facility, an awards facility, or the campus of a corporation or other organization; 26
(2) provides lodging solely for employees, contractors, vendors, and other 27
invitees of the corporation that owns the dormitory or lodging facility; and 28
(3) does not offer lodging services to the general public. 29
Article – Tax – General 30
11–101. 31
(a) In this title the following words have the meanings indicated. 32 20 SENATE BILL 979
(a–1) “Accommodation” means a right to occupy a room [or], lodgings, OR A 1
SHORT–TERM RENTAL UNIT as a transient guest. 2
(a–2) (1) “Accommodations intermediary” means a person, other than an 3
accommodations provider, who: 4
(I) facilitates the sale or use of an accommodation and charges a 5
buyer the taxable price for the accommodation; OR 6
(II) RECEIVES COMPENSATIO N FOR FACILITATING 7
RESERVATIONS OR PROC ESSING BOOKING TRANS ACTIONS ON BEHALF OF AN 8
ACCOMMODATIONS PROVI DER. 9
(2) “ACCOMMODATIONS INTERM EDIARY” INCLUDES A SHORT–TERM 10
RENTAL PLATFORM . 11
[(2)] (3) For purposes of this subsection, a person shall be considered to 12
facilitate the sale or use of an accommodation if the person brokers, coordinates, or in any 13
other way arranges for the sale or use of an accommodation by a buyer. 14
(a–3) “Accommodations provider” means a person that owns, operates, or manages 15
an accommodation and makes the accommodation available for sale or use to a buyer. 16
(a–4) “Booking transaction” means any transaction in which there is a retail sale of 17
an accommodation TO A BUYER IN EXCHAN GE FOR PAYMENT OF THE TAXABLE PRICE . 18
(c–10) (1) “Marketplace facilitator” means a person that: 19
(i) facilitates a retail sale by a marketplace seller by listing or 20
advertising for sale in a marketplace tangible personal property, digital code, or a digital 21
product; and 22
(ii) regardless of whether the person receives compensation or other 23
consideration in exchange for the person’s services, directly or indirectly through 24
agreements with third parties, collects payment from a buyer and transmits the payment 25
to the marketplace seller. 26
(2) “Marketplace facilitator” does not include: 27
(i) a platform or forum that exclusively provides Internet 28
advertising services, including listing products for sale, if the platform or forum does not 29
also engage, directly or indirectly, in collecting payment from a buyer and transmitting that 30
payment to the vendor; 31
SENATE BILL 979 21
(ii) a payment processor business appointed by a vendor to handle 1
payment transactions from clients, including credit cards and debit cards, whose only 2
activity with respect to marketplace sales is to handle transactions between two parties; or 3
(iii) a delivery service company that delivers tangible personal 4
property on behalf of a marketplace seller that is engaged in the business of a retail vendor 5
and holds a license issued under Subtitle 7 of this title. 6
(j–2) “Short–term rental platform” means an ENTITY, INCLUDING AN 7
Internet–based digital entity that: 8
(1) advertises the availability of short–term rental units for rent; and 9
(2) receives compensation for facilitating reservations or processing 10
booking transactions on behalf of the owner, operator, or manager of a short–term rental 11
unit. 12
(j–3) (1) “Short–term rental unit” means a residential dwelling unit or a portion 13
of the unit used for short–term rentals. 14
(2) “Short–term rental unit” includes a single–family house or dwelling, a 15
multifamily house or dwelling, an apartment, a condominium, or a cooperative. 16
(l) (1) “Taxable price” means the value, in money, of the consideration of any 17
kind that is paid, delivered, payable, or deliverable by a buyer to a vendor in the 18
consummation and complete performance of a sale without deduction for any expense or 19
cost, including the cost of: 20
(i) any labor or service rendered; 21
(ii) any material used; or 22
(iii) any property, digital code, or digital product sold. 23
(2) “Taxable price” includes, for tangible personal property, a digital code, 24
or a digital product acquired by a sale for use in the State by the person who assembles, 25
fabricates, or manufactures the property or digital product, only the price of the raw 26
materials and component parts contained in the property or digital product. 27
(3) “Taxable price” does not include: 28
(i) a charge that is made in connection with a sale and is stated as 29
a separate item of the consideration for: 30
1. a delivery, freight, or other transportation service for 31
delivery directly to the buyer by the vendor or by another person acting for the vendor, 32
unless the transportation service is a taxable service; 33 22 SENATE BILL 979
2. a finance charge, interest, or similar charge for credit 1
extended to the buyer; 2
3. a labor or service for application or installation; 3
4. a mandatory gratuity or service charge in the nature of a 4
tip for serving food or beverage to a group of 10 or fewer individuals for consumption on the 5
premises of the vendor; 6
5. a professional service; 7
6. a tax: 8
A. imposed by a county on the sale of coal, electricity, oil, 9
nuclear fuel assemblies, steam, or artificial or natural gas; 10
B. imposed under § 3–302(a) of the Natural Resources 11
Article, as a surcharge on electricity, and added to an electric bill; 12
C. imposed under §§ 6–201 through 6–203 of the Tax – 13
Property Article, on tangible personal property subject to a lease that is for an initial period 14
that exceeds 1 year and is noncancellable except for cause; or 15
D. imposed under § 4–102 of this article on the gross receipts 16
derived from an admissions and amusement charge; 17
7. any service for the operation of equipment used for the 18
production of audio, video, or film recordings; or 19
8. reimbursement of incidental expenses paid to a third party 20
and incurred in connection with providing a taxable detective service; 21
(ii) the value of a used component or part (core value) received from 22
a purchaser of the following remanufactured truck parts: 23
1. an air brake system; 24
2. an engine; 25
3. a rear axle carrier; or 26
4. a transmission; 27
(iii) a charge for a nontaxable service that is made in connection with 28
a sale of a taxable communication service, even if the nontaxable charges are aggregated 29
with and not separately stated from the taxable charges for communications services, if the 30 SENATE BILL 979 23
vendor can reasonably identify charges not subject to tax from its books and records that 1
are kept in the regular course of business; or 2
(iv) a transportation network company impact fee imposed under § 3
10–408 of the Public Utilities Article. 4
(4) “Taxable price” includes all sales and charges, including insurance, 5
freight handling, equipment and supplies, delivery and pickup, cellular telephone, and 6
other accessories, but not including sales of motor fuel subject to the motor fuel tax, made 7
in connection with: 8
(i) a short–term vehicle rental, as defined in § 11–104(c) of this 9
subtitle; or 10
(ii) a shared motor vehicle used for peer–to–peer car sharing and 11
made available on a peer–to–peer car sharing program, as defined in § 19–520 of the 12
Insurance Article. 13
(5) “Taxable price” includes: 14
(i) for the sale or use of an accommodation facilitated by an 15
accommodations intermediary [or a short–term rental platform], the full amount of the 16
consideration paid by a buyer for the sale or use of an accommodation FOR A PERIOD NOT 17
EXCEEDING 4 CONSECUTIVE MONTHS , but not including any tax that is remitted to a 18
taxing authority; and 19
(ii) for the sale or use of a home amenity rental facilitated by a home 20
amenity rental intermediary or home amenity rental platform, the full amount of 21
consideration paid by a buyer for the sale or use of a home amenity rental, but not including 22
any tax that is remitted to a taxing authority. 23
(6) “Taxable price” does not include: 24
(i) for the sale or use of an accommodation facilitated by an 25
accommodations intermediary [or a short–term rental platform], a commission paid by an 26
accommodations provider to a person after facilitating the sale or use of an accommodation; 27
or 28
(ii) for the sale or use of a home amenity rental facilitated by a home 29
amenity rental intermediary or home amenity rental platform, a commission paid by a 30
home amenity rental provider to a person after facilitating the sale or use of a home amenity 31
rental. 32
(o) (1) “Vendor” means a person who: 33
(i) engages in the business of an out–of–state vendor, as defined in 34
§ 11–701 of this title; 35 24 SENATE BILL 979
(ii) engages in the business of a retail vendor, as defined in § 11–701 1
of this title; 2
(iii) holds a special license issued under § 11–707 of this title; 3
(iv) is an accommodations intermediary or a home amenity rental 4
intermediary; 5
(v) is a short–term rental platform or home amenity rental platform; 6
(vi) engages in the business of a marketplace facilitator; or 7
(vii) engages in the business of a marketplace seller. 8
(2) “Vendor” includes, for an out –of–state vendor, a salesman, 9
representative, peddler, or canvasser whom the Comptroller, for the efficient 10
administration of this title, elects to treat as an agent jointly responsible with the dealer, 11
distributor, employer, or supervisor: 12
(i) under whom the agent operates; or 13
(ii) from whom the agent obtains the tangible personal property, a 14
digital code, a digital product, or taxable service for sale. 15
11–403. 16
(a) In this section, “sale” includes a booking transaction made through [a 17
short–term rental platform] AN ACCOMMODATIONS IN TERMEDIARY . 18
11–502.3. 19
(A) IN THIS SECTION , “LOCAL HOTEL RENTAL TAX ” MEANS THE HOTEL 20
RENTAL TAX IMPOSED UNDER : 21
(1) TITLE 20, SUBTITLE 4 OF THE LOCAL GOVERNMENT ARTICLE; 22
(2) § 20–603(A)(3) OF THE LOCAL GOVERNMENT ARTICLE; 23
(3) § 20.400 OF THE HOWARD COUNTY CODE; AND 24
(4) § 10–218.1 OF THE PRINCE GEORGE’S COUNTY CODE. 25
(B) THE COMPTROLLER SHALL DEV ELOP A SINGLE TAX RETURN FOR USE 26
BY AN ACCOMMODATIONS INTERMEDIARY THAT AG GREGATES THE LOCAL HOTEL 27 SENATE BILL 979 25
RENTAL TAXES THAT AN ACCOMM ODATIONS INTERMEDIAR Y IS REQUIRED TO 1
COLLECT AND REMIT . 2
(C) EACH ACCOMMODATIONS I NTERMEDIARY SHALL COM PLETE, UNDER 3
OATH, AND FILE WITH THE COMPTROLLER A HOTEL R ENTAL TAX RETURN FOR 4
LOCAL HOTEL RENTAL T AXES AND THE TAX IMP OSED UNDER THIS TITL E: 5
(1) ON OR BEFORE THE 25TH DAY OF THE MONTH THAT FOLLOWS THE 6
MONTH IN WHICH THE A CCOMMODATIONS INTERM EDIARY FACILITATES A BOOKING 7
TRANSACTION OR SALE FOR USE OF AN ACCOMM ODATION; AND 8
(2) FOR OTHER PERIODS AN D ON OTHER DATES THA T THE 9
COMPTROLLER SPECIFIES BY REGULATION , INCLUDING PERIODS IN WHICH THE 10
ACCOMMODATIONS INTER MEDIARY OR ACCOMMODA TIONS PROVIDER DOES NOT 11
FACILITATE ANY BOOKING TRANSACT ION OR SALE FOR USE OF AN 12
ACCOMMODATION . 13
(D) A RETURN SHALL REQUIRE AN ACCOMMODA TIONS INTERMEDIARY T O 14
STATE, FOR THE PERIOD THAT THE RETURN COVERS : 15
(1) THE GROSS PROCEEDS O F THE BUSINESS OF TH E 16
ACCOMMODATIONS INTER MEDIARY; 17
(2) THE TAXABLE PRICE OF SALES ON WHICH THE LOCAL HOTEL 18
RENTAL TAX WAS IMPOSED; 19
(3) THE LOCAL HOTEL RENTAL TAX DUE; AND 20
(4) ANY ALLOWABLE DISCOU NTS, DEDUCTIONS , OR EXEMPTIONS . 21
(E) IF THE COMPTROLLER APPROVES , AN ACCOMMODATIONS 22
INTERMEDIAR Y MAY FILE A CONSOLIDA TED RETURN IF THE AC COMMODATIONS 23
INTERMEDIARY ENGAGES IN MORE THAN ONE BUSINESS IN WHICH TH E 24
ACCOMMODATIONS INTER MEDIARY FACILITATES BOOKING TRANSACTIONS OR 25
SALES FOR USE OF AN ACCOMMODATION . 26
13–201. 27
In this subtitle, “tax information” means: 28
(1) any tax return, information return, declaration of estimated tax, 29
extension of time to file a return, or claim for refund under this article that is filed with the 30
tax collector by, on behalf of, or with respect to any person and any amendment or 31 26 SENATE BILL 979
supplement thereto, including supporting schedules, attachments, or lists that are 1
supplemental to or a part of the return; 2
(2) the amount of income or any other particulars disclosed in a tax return 3
required under this article, if the return contains return information, as defined in § 6103 4
of the Internal Revenue Code; 5
(3) any return or return information, as defined in § 6103 of the Internal 6
Revenue Code, required to be attached to or included in a tax return required under this 7
article; or 8
(4) any information contained in: 9
(i) an admissions and amusement tax return; 10
(ii) an alcoholic beverage tax return; 11
(iii) a bay restoration fee return; 12
(iv) a boxing and wrestling tax return; 13
(v) a digital advertising gross revenues tax return; 14
(vi) an E–9–1–1 fee return; 15
(vii) a financial institution franchise tax return; 16
(VIII) A HOTEL RENTAL TAX R ETURN; 17
[(viii)] (IX) an inheritance tax return; 18
[(ix)] (X) a Maryland estate tax return; 19
[(x)] (XI) a motor carrier tax return; 20
[(xi)] (XII) a motor fuel tax return; 21
[(xii)] (XIII) an other tobacco products tax return; 22
[(xiii)] (XIV) a public service company franchise tax return; 23
[(xiv)] (XV) a sales and use tax return; 24
[(xv)] (XVI) a savings and loan association franchise tax return; 25
[(xvi)] (XVII) a tire recycling fee return; 26 SENATE BILL 979 27
[(xvii)] (XVIII) a tobacco tax return; or 1
[(xviii)] (XIX) a transportation services assessment return. 2
13–302. 3
(a) [To] EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , TO 4
determine whether a tax return is correct or otherwise to enforce a provision of this article, 5
a tax collector may: 6
(1) examine any records or other data that may be relevant or material to 7
the matters required to be included in a tax return; 8
(2) conduct an investigation; 9
(3) hold a hearing; 10
(4) administer oaths; 11
(5) take testimony and other evidence; and 12
(6) subpoena: 13
(i) any person; or 14
(ii) any relevant document. 15
(b) If the Comptroller determines that the taxpayer’s records are so detailed, 16
complex, or voluminous that an audit of all detailed records would be unreasonable or 17
impractical, the Comptroller may compute the sales and use tax by using scientific random 18
sampling techniques. 19
(c) If a person fails to comply with a subpoena or fails to testify on any matter on 20
which the person lawfully may be interrogated, on petition of a tax collector, a circuit court 21
or, if the subpoena is issued under authority of an orphans’ court, the orphans’ court may 22
pass an order directing compliance with the subpoena or compelling testimony. 23
(D) (1) AN EXAMINATION, AUDIT, OR OTHER INVESTIGATION OF AN 24
ACCOMMODATIONS INTER MEDIARY RELATED TO THE SALES AND USE TAX OR HOTEL 25
RENTAL TAX SHALL BE CONDUCTED ON THE BASIS OF: 26
(I) THE TAXPAYER IDENTIF ICATION NUMBER ASSOC IATED 27
WITH THE ACCOMMODATI ONS INTERMEDIARY THA T FILED THE TAX RETU RN; AND 28
28 SENATE BILL 979
(II) RETURNS FILED BY THE ACCOMMODATIONS INTER MEDIARY 1
WITH THE COMPTROLLER . 2
(2) THE COMPTROLLER MAY NOT DIRECTLY OR INDI RECTLY 3
CONDUCT AN EXAMINATI ON, AUDIT, OR OTHER INVESTIGATI ON OF AN INDIVIDUAL 4
ACCOMMODATIONS PROVI DER FOR BOOKING TRANSACT IONS FACILITATED BY THE 5
ACCOMMODATIONS INTER MEDIARY. 6
(3) AN EXAMINATION , AUDIT, OR OTHER INVESTIGATI ON UNDER THIS 7
SUBSECTION, IF REQUESTED BY AN ACCOMMODATIONS INTER MEDIARY, SHALL 8
INCLUDE ALL TAX TYPE S FOR WHICH THE ACCO MMODATIONS INTERMEDI ARY IS 9
REQUIRED TO COLLECT AND REMIT UNDER TITLE 11 OF THIS ARTICLE. 10
(4) THE COMPTROLLER MAY REQUE ST THE FOLLOWING 11
INFORMATION FROM AN ACCOMMODATIO NS INTERMEDIARY IN THE COURSE OF AN 12
EXAMINATION , AUDIT, OR OTHER INVESTIGATION ONLY TO THE EXTENT THAT THE 13
INFORMATION IS NECES SARY FOR THE ENFORCE MENT OF THE TAX COLL ECTION 14
OBLIGATIONS IMPOSED ON THE ACCOMMODATION S INTERMEDIAR Y: 15
(I) PERSONALLY IDENTIFIA BLE INFORMATION OF AN 16
ACCOMMODATIONS PROVI DER; 17
(II) A PHYSICAL ADDRESS OF AN ACCOMMODATION 18
FACILITATED BY AN ACCOMMODATIONS INTER MEDIARY; OR 19
(III) THE AMOUNTS TRANSMIT TED FROM THE 20
ACCOMMODATIONS INTERMEDI ARY TO THE ACCOMMODATION S PROVIDER. 21
(5) INFORMATION PROVIDED BY AN ACCOMMODATIONS 22
INTERMEDIARY UNDER THIS SECTION IS CONFIDENTIAL TAX INFO RMATION UNDER 23
SUBTITLE 2 OF THIS TITLE. 24
Article 14 – Howard County 25
20.400. 26
(a) Howard County may impose, by law, and collect a sales or use tax on room 27
rentals in the county for sleeping accommodations for transients. 28
(b) (1) The rate of the tax authorized under this section may not exceed seven 29
percent. 30
SENATE BILL 979 29
(2) Subject to the annual County budget and appropriation process, the 1
County shall distribute any revenue attributable to a tax rate greater than five percent 2
imposed by the County under this subsection as follows: 3
(i) Two–thirds to the Howard County Tourism Council; and 4
(ii) One–third to the Howard County Economic Development 5
Authority. 6
(c) SUBJECT TO SUBSECTION (E) OF THIS SECTION , Howard County may 7
adopt, by law, any procedural or enforcement provision that the County Council considers 8
to be necessary or appropriate for administration or collection of the tax authorized under 9
this section, including, without limitation: 10
(1) Requiring hotels in the County to: 11
(i) Collect the tax from patrons; 12
(ii) Hold the tax in trust for the County; 13
(iii) Pay the tax collected and file periodic returns with the County; 14
and 15
(iv) File a bond or other security for payment of the tax in an amount 16
that the County Council considers to be necessary; 17
(2) [Providing a tax exemption for classes of hotels; 18
(3)] Imposing interest and penalties for late payment of the tax; 19
[(4)] (3) Making unpaid tax a lien against the real and personal property 20
of the person owing the tax; and 21
[(5)] (4) Providing for collection of the tax by distraint. 22
(d) The room rental tax authorized under this section does not apply to the sale 23
of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging 24
facility that: 25
(1) Is operated solely in support of the headquarters, a training facility, a 26
conference facility, an awards facility, or the campus of a corporation or other organization; 27
(2) Provides lodging solely for employees, contractors, vendors, and other 28
invitees of the corporation that owns the dormitory or lodging facility; and 29
(3) Does not offer lodging services to the general public. 30
30 SENATE BILL 979
(e) (1) (i) In this subsection the following words have the meanings 1
indicated. 2
(II) ACCOMMODATIONS INTERM EDIARY HAS THE MEANI NG 3
STATED IN § 11–101 OF THE TAX – GENERAL ARTICLE. 4
[(ii)] (III) 1. Room rental fee means a fee charged by [a room 5
rental] AN ACCOMMODATIONS intermediary to a transient for facilitating the rental of a 6
room. 7
2. Room rental fee does not include a commission paid by a 8
hotelkeeper to a person after facilitating the rental of a room. 9
[(iii) 1. Room rental intermediary means a person, other than a 10
hotelkeeper, who facilitates the rental of a room and charges a transient for the rental of a 11
room. 12
2. For purposes of this subparagraph, a person shall be 13
considered to facilitate the rental of a room if the person brokers, coordinates, or in any 14
other way arranges for the rental of a room by a transient.] 15
(2) The room rental tax authorized under this section applies to the total 16
charge for the room rental of a room, including any room rental fee but not including any 17
tax. 18
(3) THE COMPTROLLER SHALL COL LECT THE ROOM RENTAL TAX 19
AUTHORIZED UNDER THI S SECTION FROM ACCOM MODATIONS INTERMEDIA RIES IN 20
THE MANNER PRESCRIBE D IN TITLE 20, SUBTITLE 4 OF THE LOCAL GOVERNMENT 21
ARTICLE AND TITLE 11 OF THE TAX – GENERAL ARTICLE. 22
Article 17 – Prince George’s County 23
10–218.01. 24
(a) [The] SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE County 25
Council of Prince George’s County may levy and impose a tax of not exceeding ten percent 26
(10%) on all gross amounts of money paid to the owners or operators of hotels and motels 27
in Prince George’s County beginning July 1, 1975, by transient guests or tenants for 28
renting, using or occupying a room or rooms in hotels and motels in Prince George’s County 29
to be paid and collected pursuant to rules and regulations adopted by the County Council. 30
(b) (1) [Any] SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY 31
revenues generated under the authority of this Section from a hotel and motel tax within 32
the boundaries of a municipal corporation located in Prince George’s County shall be 33
collected by the County. 34
SENATE BILL 979 31
(2) The County shall distribute to the municipal corporation within which 1
the revenues were generated 50% of the revenues collected by the County from hotels and 2
motels in the municipal corporation. 3
(c) The tax authorized under this section does not apply to the sale of a right to 4
occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that: 5
(1) is operated solely in support of the headquarters, a training facility, a 6
conference facility, an awards facility, or the campus of a corporation or other organization; 7
(2) provides lodging solely for employees, contractors, vendors, and other 8
invitees of the corporation that owns the dormitory or lodging facility; and 9
(3) does not offer lodging services to the general public. 10
(D) THE COMPTROLLER SHALL : 11
(1) COLLECT THE TAX AUTHORIZED UNDER THIS SECTION FROM 12
ACCOMMODATIONS INTER MEDIARIES IN THE MAN NER PRESCRIBED IN TITLE 20, 13
SUBTITLE 4 OF THE LOCAL GOVERNMENT ARTICLE AND TITLE 11 OF THE TAX – 14
GENERAL ARTICLE; AND 15
(2) DISTRIBUTE: 16
(I) 50% OF THE REVENUE COLLE CTED WITHIN A MUNICIPAL 17
CORPORATION TO THE MUNICIPAL COR PORATION; AND 18
(II) ALL REMAINING REVENU E TO THE COUNTY . 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2026. 21