EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
Committee amendments withdrawn, March 14, 2025
Senate action: Adopted with substitute committee amendments, March 14, 2025
Read second time: March 14, 2025
CHAPTER ______
AN ACT concerning 1
Local Government – Accommodations Intermediaries – Hotel Rental Tax – 2
Collection by Comptroller and Alterations 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; 10
altering the rate of interest on unpaid hotel rental tax in Garrett County; altering 11
the amount of time that a hotel has to pay the hotel rental tax in Talbot County 12
before incurring a penalty; altering the maximum sales or use tax rate that Howard 13
County is authorized to impose on certain room rentals in the County; and generally 14
relating to requiring accommodations intermediaries to collect and remit hotel rental 15
taxes to the Comptroller and hotel rental taxes in certain counties. 16
BY repealing and reenacting, with amendments, 17
Article – Local Government 18
Section 20–401 through 20–404, 20–406 through 20–411, 20–413, 20–423, 20–425 19
through 20–428, 20–431, 20–432, 20–434, 20–436, and 20–603(b) 20
Annotated Code of Maryland 21
(2013 Volume and 2024 Supplement) 22
2 SENATE BILL 979
BY adding to 1
Article – Local Government 2
Section 20–402.1, 20–405(e), 20–407.1, and 20–433(c) 3
Annotated Code of Maryland 4
(2013 Volume and 2024 Supplement) 5
BY repealing and reenacting, without amendments, 6
Article – Local Government 7
Section 20–603(a) and (f) 8
Annotated Code of Maryland 9
(2013 Volume and 2024 Supplement) 10
BY repealing and reenacting, without amendments, 11
Article – Tax – General 12
Section 11–101(a), (a–3), (c–10), (j–3), and (o) and 13–302 13
Annotated Code of Maryland 14
(2022 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Tax – General 17
Section 11–101(a–1), (a–2), (a–4), (j–2), and (l), 11–403(a), 13–201, and 13–302 18
13–508, and 13–509 19
Annotated Code of Maryland 20
(2022 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Tax – General 23
Section 11–502.3 24
Annotated Code of Maryland 25
(2022 Replacement Volume and 2024 Supplement) 26
BY repealing and reenacting, with amendments, 27
The Public Local Laws of Howard County 28
Section 20.400 29
Article 14 – Public Local Laws of Maryland 30
(1977 Edition and October 2022 Supplement, as amended) 31
BY repealing and reenacting, with amendments, 32
The Public Local Laws of Prince George’s County 33
Section 10–218.01 34
Article 17 – Public Local Laws of Maryland 35
(2015 Edition and January 2018 Supplement, as amended) 36
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 37
That the Laws of Maryland read as follows: 38
Article – Local Government 39 SENATE BILL 979 3
20–401. 1
(a) In this part the following words have the meanings indicated. 2
(B) (1) “ACCOMMODATION ” HAS THE MEANING STAT ED IN § 11–101 OF 3
THE TAX – GENERAL ARTICLE. 4
(2) “ACCOMMODATION ” INCLUDES THE RIGHT T O OCCUPY ANY OF 5
THE FOLLOWING AS A T RANSIENT GUEST : 6
(I) AN APARTMENT ; 7
(II) A COTTAGE; 8
(III) A HOSTELRY; 9
(IV) AN INN; 10
(V) A MOTEL; 11
(VI) A ROOMING HOUSE; OR 12
(VII) A TOURIST HOME . 13
(C) “ACCOMMODATIONS INTERM EDIARY” HAS THE MEANING STAT ED IN § 14
11–101 OF THE TAX – GENERAL ARTICLE. 15
(D) “ACCOMMODATIONS PROVID ER” HAS THE MEANING STAT ED IN § 11–101 16
OF THE TAX – GENERAL ARTICLE. 17
(E) “BOOKING TRANSACTION ” HAS THE MEANING STAT ED IN § 11–101 OF 18
THE TAX – GENERAL ARTICLE. 19
[(b)] (F) (1) “Hotel” means an establishment that offers sleeping 20
accommodations for compensation. 21
(2) “Hotel” includes: 22
(i) an apartment; 23
(ii) a cottage; 24
(iii) a hostelry; 25
4 SENATE BILL 979
(iv) an inn; 1
(v) a motel; 2
(vi) a rooming house; [or] 3
(vii) a tourist home; OR 4
(VIII) A SHORT–TERM RENTAL UNIT . 5
[(c)] (G) “Hotel rental tax” means the tax on [a transient charge] THE TAXABLE 6
PRICE PAID FOR A BOO KING TRANSAC TION. 7
[(d) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this 8
paragraph, “transient charge” means a hotel charge for sleeping accommodations for a 9
period not exceeding 4 consecutive months. 10
(ii) In Carroll County, “transient charge” means a hotel charge for 11
sleeping accommodations for a period not exceeding 25 days. 12
(iii) In Frederick County, “transient charge” means a hotel charge for 13
sleeping accommodations for a period not exceeding 90 days. 14
(iv) In Garrett County and Washington County, “transient charge” 15
means a hotel charge for sleeping accommodations for a period not exceeding 30 days. 16
(2) “Transient charge” does not include any hotel charge for: 17
(i) services; or 18
(ii) accommodations other than sleeping accommodations.] 19
(H) “SHORT–TERM RENTAL UNIT ” HAS THE MEANING STAT ED IN § 11–101 20
OF THE TAX – GENERAL ARTICLE. 21
(I) “TAXABLE PRICE” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 22
GENERAL ARTICLE. 23
[(e)] (J) “Western Maryland code county” means a code county in the Western 24
Maryland class as established under § 9–302 of this article. 25
20–402. 26
(a) This part applies [only to: 27
(1) subject to subsection (b) of this section, a charter county; 28 SENATE BILL 979 5
(2) a code county; 1
(3) Calvert County; 2
(4) Carroll County; 3
(5) Cecil County; 4
(6) Garrett County; 5
(7) St. Mary’s County; 6
(8) Somerset County; and 7
(9) Washington County] TO EACH COUNTY IN TH E STATE. 8
(b) To the extent this part conflicts with another law that applies to a [charter] 9
county, [the other law shall prevail over] this part SHALL PREVAIL OVER T HE OTHER 10
LAW. 11
20–402.1. 12
THIS SUBTITLE APPLIES TO AN ACCOMMODATIONS INTERMEDIARY ONLY IF 13
THE ACCOMMODATIONS I NTERMEDIARY FACILITA TES: 14
(1) BOOKING TRANSACTIONS OR SALES FOR USE OF AN 15
ACCOMMODATION IN THE STATE TOTALING $100,000 OR MORE IN THE PREVI OUS OR 16
CURRENT CALENDAR YEA R; OR 17
(2) 200 OR MORE BOOKING TRAN SACTIONS OR SALES FO R USE OF AN 18
ACCOMMODATION IN THE STATE IN THE PREVIOUS OR CURRENT CALENDAR YEAR . 19
20–403. 20
(a) Except as provided in § 20–404 of this subtitle, a county may impose, by 21
resolution, a hotel rental tax. 22
(b) (1) This subsection applies only to Calvert County, Charles County, and St. 23
Mary’s County. 24
(2) The governing body of a county shall hold a public hearing before 25
imposing a hotel rental tax. 26
(3) The hearing: 27
6 SENATE BILL 979
(i) shall be advertised twice in a newspaper of general circulation in 1
the county at least 10 days before the hearing; and 2
(ii) may not be part of the annual budget hearing. 3
(C) (1) SUBJECT TO SUBSECTION (D) OF THIS SECTION, TITLE TITLES 1, 4
2, AND 11 AND TITLE 13, SUBTITLE 3 OF THE TAX – GENERAL ARTICLE AND THIS 5
TITLE SHALL PREVAIL TO THE EXTENT OF ANY CONFLICT WITH ANY LO CAL LAW, 6
ORDINANCE, OR RESOLUTION RELATI NG TO THE COUNTY HOT EL RENTAL TAX. 7
(2) ANY LOCAL LAW , ORDINANCE, OR RESOLUTION THAT I S 8
PREEMPTED UNDER PARA GRAPH (1) OF THIS SUBSECTION I S NOT REPEALED BUT 9
SHALL BE ADMINISTERE D IN CONFORMITY WITH STATE LAW. 10
(D) BEGINNING JANUARY 1, 2028, TITLE TITLES 1, 2, AND 11 AND TITLE 13, 11
SUBTITLE 3 OF THE TAX – GENERAL ARTICLE AND THIS TITL E SHALL PREVAIL TO 12
THE EXTENT OF ANY CO NFLICT WITH AN AGREE MENT BETWEEN A COUNT Y AND AN 13
ACCOMMODATIONS INTER MEDIARY. 14
20–404. 15
(a) The hotel rental tax does not apply to the sale of a right to occupy [a room or 16
lodgings] AN ACCOMMODATION as a transient guest at a dormitory or other lodging 17
facility that: 18
(1) is operated solely in support of the headquarters, a training facility, a 19
conference facility, an awards facility, or the campus of a corporation or other organization; 20
(2) provides lodging solely for employees, contractors, vendors, and other 21
invitees of the corporation that owns the dormitory or lodging facility; and 22
(3) does not offer lodging services to the general public. 23
[(b) By resolution, Calvert County and St. Mary’s County may provide a tax 24
exemption for classes of hotels. 25
(c) In Carroll County, the hotel rental tax does not apply to a hotel with 10 or 26
fewer sleeping rooms. 27
(d) Cecil County may impose the hotel rental tax only on a transient charge paid 28
to a hotel located in any part of Cecil County that: 29
(1) is specified by the governing body of Cecil County as a population 30
center; 31
(2) is not larger than 10 square miles in geographic area; and 32 SENATE BILL 979 7
(3) has a population of at least 6,000 residents. 1
(e) In Frederick County, the hotel rental tax does not apply to a hotel with: 2
(1) 10 or fewer sleeping rooms in its main building; and 3
(2) not more than 20 additional sleeping rooms in auxiliary structures on 4
the hotel’s property. 5
(f) In Washington County, the hotel rental tax does not apply to a transient 6
charge paid to a hotel by: 7
(1) the federal government; 8
(2) a state; or 9
(3) a unit or instrumentality of a state or the federal government.] 10
(B) A COUNTY MAY NOT IMPOS E A HIGHER TAX RATE ON THE SALE OF A 11
RIGHT TO OCCUPY A SH ORT–TERM RENTAL UNIT THA N IT IMPOSES ON THE RENTAL 12
OF ANY OTHER ACCOMMO DATION. 13
20–405. 14
(E) IF A COUNTY MODIFIES A HOTEL RENTAL TAX R ATE UNDER THIS 15
SECTION, THE COUNTY SHALL NOTIFY THE COMPTROLLER IN WRITIN G AT LEAST 60 16
DAYS BEFORE THE MODI FIED RATE TAKES EFFE CT: 17
(1) MODIFY THE RATE EFFE CTIVE ON JULY 1 OF THE YEAR THAT THE 18
COUNTY DESIGNATES ; AND 19
(2) NOTIFY THE COMPTROLLER IN WRITIN G OF THE RATE CHANGE ON 20
OR BEFORE JANUARY 1 PRECEDING THE EFFECT IVE DATE OF THE RATE CHANGE. 21
20–406. 22
(a) A hotel OR AN ACCOMMODATIONS PROVIDER shall: 23
(1) give a person who is required to pay a [transient charge] HOTEL 24
RENTAL TAX a bill that identifies the [transient charge] TAXABLE PRICE as an item 25
separate from any other charge; [and] 26
(2) collect the hotel rental tax from the person who pays the [transient 27
charge.] TAXABLE PRICE ; AND 28
8 SENATE BILL 979
[(b)] (3) [A hotel shall] hold any hotel rental tax collected in trust for the county 1
that imposes the tax until the hotel pays the tax to that county as required under this part. 2
(B) FOR BOOKING TRANSACTI ONS AND SALES FOR US E OF AN 3
ACCOMMODATION , AN ACCOMMODATIONS IN TERMEDIARY SHALL: 4
(1) GIVE A PERSON WHO IS REQUIRED TO PAY A HO TEL RENTAL TAX A 5
BILL THAT IDENTIFIES THE TAXABLE PRICE AS AN ITEM SEPARATE FRO M ANY 6
OTHER CHARGE ; 7
(2) COLLECT THE HOTEL RE NTAL TAX FROM THE PE RSON WHO PAYS 8
THE TAXABLE PRICE ; AND 9
(3) HOLD ANY HOTEL RENTAL TAX COL LECTED IN TRUST FOR THE 10
COUNTY THAT IMPOSES THE TAX UNTIL THE AC COMMODATIONS INTERME DIARY 11
PAYS THE TAX TO THE COMPTROLLER IN ACCORD ANCE WITH § 11–502.3 OF THE TAX 12
– GENERAL ARTICLE. 13
20–407. 14
(A) A person shall pay the hotel rental tax to the hotel OR ACCOMMODATIONS 15
PROVIDER when the person pays the [transient charge] TAXABLE PRICE . 16
(B) A PERSON SHALL PAY THE HOTEL RENTAL TAX TO THE 17
ACCOMMODATIONS INTER MEDIARY WHEN THE PER SON PAYS THE TAXABLE PRICE 18
FOR A BOOKING TRANSA CTION FACILITATE D BY THE ACCOMMODATI ONS 19
INTERMEDIARY . 20
20–407.1. 21
(A) AN ACCOMMODATIONS INT ERMEDIARY SHALL COLL ECT THE HOTEL 22
RENTAL TAX UNDER THI S SUBTITLE ON A BOOK ING TRANSACTION FOR AN 23
ACCOMMODATION IN THE STATE FACILITATED BY THE ACCOMMODATIONS 24
INTERMEDIARY . 25
(B) AN ACCOMMODATIONS INT ERMEDIARY OR OTHER A PPROPRIATE PARTY 26
SHALL REFUND TO A BU YER THE PROPORTIONAT E AMOUNT OF THE HOTE L RENTAL 27
TAX THAT THE BUYER H AS PAID IF: 28
(1) A SALE IS RESCINDED OR CANCELED ; OR 29
(2) THE TAXABLE PRICE IS WHOLLY OR PARTIALLY REPAID OR 30
CREDITED. 31
SENATE BILL 979 9
(C) AN ACCOMMODATIONS INT ERMEDIARY SHALL REPO RT THE HOTEL 1
RENTAL TAX COLLECTED UNDER THIS SECTION S EPARATELY FROM THE S ALES AND 2
USE TAX COLLECTED BY THE ACCOMMODATIONS I NTERMEDIARY UNDER TITLE 11 3
OF THE TAX – GENERAL ARTICLE. 4
(D) AN ACCOMMODATIONS INTERMEDIA RY THAT FACILITATES A BOOKING 5
TRANSACTION FOR A BU YER ON BEHALF OF AN ACCOMMODATIONS PROVI DER 6
SHALL: 7
(1) REMIT TO THE COMPTROLLER THE HOTEL RENTAL TAX UNDER 8
THIS SUBTITLE IN THE MANNER AND ON THE FO RM PRESCRIBED BY THE 9
COMPTROLLER ; 10
(2) BE SOLELY LIABLE TO COLLECT THE HOTEL RE NTAL TAX FROM 11
THE BUYER FOR TRANSA CTIONS FACILITATED B Y THE ACCOMMODATIONS 12
INTERMEDIARY ; 13
(3) BE SUBJECT TO AUDIT , EXAMINATION , INVESTIGATION , AND 14
ASSESSMENT SOLELY BY THE COMPTROLLER UNDER TITLE 13 OF THE TAX – 15
GENERAL ARTICLE; AND 16
(4) BE ENTITLED TO THE P ROCEDURAL RIGHTS SET FORTH UNDER 17
TITLE 13 OF THE TAX – GENERAL ARTICLE, INCLUDING THE RIGHT TO SEEK A 18
REFUND FOR THE OVERP AYMENT OF TAXES , THE RIGHT TO APPEAL A TAX 19
ASSESSMENT , AND THE RIGHT TO SEE K JUDICIAL REVIEW OF A DE TERMINATION 20
MADE BY THE COMPTROLLER . 21
(E) (1) AN ACCOMMODATIONS PRO VIDER SHALL REMIT TH E HOTEL 22
RENTAL TAX DUE ON A SALE OR BOOKING TRAN SACTION THAT IS NOT FACILITATED 23
BY AN ACCOMMODATIONS INTERMEDIARY TO THE COUNTY THAT IMPOSES THE TAX. 24
(2) (I) AN ACCOMMODATIONS PRO VIDER AND AN 25
ACCOMMODATIONS INTER MEDIARY MAY ENTER IN TO AN AGREEMENT TO 26
DETERMINE THE PARTY THAT IS RESPONSIBLE FOR REMITTING THE HO TEL RENTAL 27
TAX TO THE COMPTROLLER IF EITHER PARTY IS A VENDOR IN THE STATE UNDER § 28
11–401 OF THE TAX – GENERAL ARTICLE. 29
(II) THE PARTY THAT AGREES TO REMIT THE TAX UND ER 30
SUBPARAGRAPH (I) OF THIS PARAGRAPH SH ALL BE THE SOLE PART Y HELD LIABLE 31
FOR THE COLLECTION A ND PAYMENT OF THE HO TEL RENTAL TAX . 32
20–408. 33
10 SENATE BILL 979
(A) A hotel OR AN ACCOMMODATIONS PROVIDER shall complete, sign, and file 1
a hotel rental tax return with: 2
(1) except as provided in item (2) of this section, a code county, on or before 3
the 10th day of each month; and 4
(2) (i) Cecil County, on or before the 10th day of each month; 5
(ii) Talbot County and Wicomico County, on or before the 20th day 6
of each month; 7
(iii) a code county in the Eastern Shore class established in § 9–302 8
of this article, Calvert County, Carroll County, Charles County, Dorchester County, 9
Frederick County, Garrett County, St. Mary’s County, and Somerset County, on or before 10
the 21st day of each month; and 11
(iv) Washington County, on or before the 25th day of each month. 12
(B) AN ACCOMMODATIONS INT ERMEDIARY SHALL FILE A HOTEL RENTAL 13
TAX RETURN WITH THE COMPTROLLER ON OR BEF ORE THE 25TH DAY OF THE 14
MONTH. 15
(C) THE COMPTROLLER SHALL GRA NT A WAIVER FROM THE FILING OF A 16
HOTEL RENTAL TAX RET URN IF AN ACCOMMODAT IONS PROVIDER THAT P ROVIDES 17
ACCOMMODATIONS EXCLU SIVELY THROUGH AN AC COMMODATIONS INTERME DIARY: 18
(1) ATTESTS ON AN ANNUAL BASIS THAT BOOKING T RANSACTIONS 19
ARE FACILITATED BY T HE ACCOMMODATIONS IN TERMEDIARY ; AND 20
(2) REQUESTS A WAIVER FR OM FILING THE HOTEL RENTAL TAX 21
RETURN REQUIRED UNDE R THIS TITLE. 22
20–409. 23
(A) [A] FOR A BOOKING TRANSAC TION THAT IS NOT FAC ILITATED BY AN 24
ACCOMMODATIONS INTER MEDIARY, A hotel rental tax return for a county: 25
(1) shall be made on the form that the county requires; and 26
(2) shall contain the information that the county requires, including the 27
amount of: 28
(i) [transient charges] TAXABLE PRICE paid to the hotel OR 29
ACCOMMODATIONS PROVI DER during the prior calendar month; and 30
SENATE BILL 979 11
(ii) the hotel rental tax required to be collected during the prior 1
calendar month. 2
(B) FOR A BOOKING TRANSACTION THAT IS FACILITATED BY AN 3
ACCOMMODATIONS INTER MEDIARY, THE HOTEL RENTAL TAX RETURN SHALL BE 4
FILED IN THE MANNER AND ON THE FORM THAT THE COMPTROLLER REQUIRES 5
UNDER § 11–502.3 OF THE TAX – GENERAL ARTICLE. 6
20–410. 7
(A) A hotel OR AN ACCOMMODAT IONS PROVIDER shall pay to the county the 8
hotel rental tax collected for a calendar month with the return that covers that month. 9
(B) AN ACCOMMODATIONS INT ERMEDIARY SHALL PAY TO THE 10
COMPTROLLER THE HOTEL RENTAL TAX COLLECTED FOR A CALENDAR MONTH 11
WITH THE RETURN THAT COVERS T HAT MONTH. 12
20–411. 13
(a) Except in Calvert County, Carroll County, Charles County, St. Mary’s County, 14
and Washington County, a hotel, AN ACCOMMODATIONS IN TERMEDIARY , OR AN 15
ACCOMMODATIONS PROVI DER is allowed, for administrative costs, a discount equal to 16
1.5% of the gross amount of hotel rental tax collected if, on or before the due date, the hotel, 17
ACCOMMODATIONS INTER MEDIARY, OR ACCOMMODATIONS PR OVIDER: 18
(1) files the hotel rental tax return; and 19
(2) pays the hotel rental tax. 20
(b) In Calvert County, Carroll County, Charles County, St. Mary’s County, and 21
Washington County, the county commissioners may determine whether a hotel , AN 22
ACCOMMODATIONS INTER MEDIARY, OR AN ACCOMMODATIONS PROVIDER is eligible 23
to receive a discount. 24
20–413. 25
(a) The Comptroller shall: 26
(1) provide a county with information to help the county verify hotel rental 27
tax liability FOR THE HOTEL RENTAL TAX REMITTED BY A HO TEL OR AN 28
ACCOMMODATIONS PROVI DER; 29
(2) ESTABLISH THE REMITT ANCE PROCESS FOR THE HOTEL RENTAL 30
TAX COLLECTED AND RE MITTED BY AN ACCOMMO DATIONS INTERMEDIARY ; 31
12 SENATE BILL 979
(3) ESTABLISH THE PROCES S FOR DISTRIBUTING T O EACH COUNTY , 1
BEFORE THE LAST DAY OF THE NEXT MONTH , THE HOTEL RENTAL TAX REVENUE 2
THAT IS COLLECTED ON BEHALF OF EACH CO UNTY FROM AN ACCOMMODATIO NS 3
INTERMEDIARY DURING THE PRECEDING MONTH; 4
(4) PUBLISH THE HOTEL RE NTAL TAX RATE , FEES, OR SURCHARGES 5
IMPOSED ON AN ACCOMM ODATION BY A COUNTY OR A MUNICIPALITY UN DER THIS 6
SUBTITLE; 7
(5) DEVELOP A SINGLE RETURN FOR US E BY AN ACCOMMODATIO NS 8
INTERMEDIARY THAT AG GREGATES THE HOTEL R ENTAL TAX THAT AN 9
ACCOMMODATIONS INTER MEDIARY IS REQUIRED TO COLLECT AND REMIT ; AND 10
(6) ADOPT REGULATIONS TO IMPLEMENT THIS PART . 11
(b) (1) The Comptroller may charge a county a reasonable fee for the cost of 12
providing information under SUBSECTION (A)(1) OF this section. 13
(2) THE COMPTROLLER SHALL CHA RGE A COUNTY A REASO NABLE 14
FEE FOR THE ADMINIST RATIVE COSTS OF COLL ECTING THE HOTEL REN TAL TAX. 15
[(2)] (3) The county shall treat the fee as a hotel rental tax administrative 16
cost. 17
(C) TO DEFRAY THE COST OF COLLECTING AND DISTR IBUTING THE HOTEL 18
RENTAL TAX UNDER THI S PART, THE COMPTROLLER MAY DISTR IBUTE TO AN 19
ADMINISTRATIVE COST ACCOUNT AN AMOUNT NO T TO EXCEED 1.5% OF THE HOTEL 20
RENTAL TAX REVENUE C OLLECTED EACH MONTH ON BEHALF OF A COUNT Y FROM 21
AN ACCOMMODATIONS IN TERMEDIARY . 22
20–423. 23
A county shall make the distributions required under this part: 24
(1) between the 15th day and the 30th day of each calendar month FOR 25
HOTEL RENTAL TAX COLL ECTED FROM HOTELS OR ACCOMMODATIONS PROVI DERS; 26
OR 27
(2) WITHIN 15 DAYS AFTER RECEIVING THE FUNDS FROM THE 28
COMPTROLLER FOR HOTEL RENTAL TAX COLLECTED FROM ACCOMMODATIONS 29
INTERMEDIARIES . 30
20–425. 31
SENATE BILL 979 13
(a) If a hotel, AN ACCOMMODATIONS PROVIDER, OR AN ACCOMMODATIONS 1
INTERMEDIARY fails to pay the hotel rental tax as required under this part, the hotel, 2
ACCOMMODATIONS PROVI DER, OR ACCOMMODATIONS IN TERMEDIARY shall pay 3
interest on the unpaid tax from the date on which the hotel, ACCOMMODATI ONS 4
PROVIDER, OR ACCOMMODATIONS IN TERMEDIARY is required to pay the tax to the date 5
that the tax is paid. 6
(b) The interest rate for each month or fraction of a month is: 7
(1) for Cecil County, Dorchester County, GARRETT COUNTY, Talbot 8
County, Washington County, and Wicomico County, 1%; and 9
(2) for any other county, 0.5%. 10
20–426. 11
(a) Except in Talbot County or Wicomico County, if a hotel , AN 12
ACCOMMODATIONS PROVI DER, OR AN ACCOMMODATIONS INTERMEDIARY 13
REQUIRED TO COLLECT THE HOTEL RENTAL TAX fails to pay the hotel rental tax to a 14
county within 1 month after the payment is due under § 20–410 of this subtitle, the hotel, 15
ACCOMMODATIONS PROVI DER, OR ACCOMMODATIONS IN TERMEDIARY shall pay a tax 16
penalty of 10% of the unpaid tax. 17
(b) If a hotel, AN ACCOMMODATIONS PR OVIDER, OR AN ACCOMMODATIONS 18
INTERMEDIARY REQUIRE D TO COLLECT THE HOT EL RENTAL TAX fails to pay the hotel 19
rental tax to Talbot County or Wicomico County within 120 days after the payment is due 20
under § 20–410 of this subtitle, the hotel, ACCOMMODATIONS PROVI DER, OR 21
ACCOMMODATIONS INTER MEDIARY shall pay a tax penalty of 10% of the unpaid tax. 22
20–427. 23
(a) A county may file a civil action to collect unpaid hotel rental tax FROM A 24
HOTEL OR AN ACCOMMOD ATIONS PROVIDER ON B OOKING TRANSACTIONS NO T 25
FACILITATED BY AN AC COMMODATIONS INTERME DIARY. 26
(b) A county may collect unpaid hotel rental tax by distraint FROM A HOTEL OR 27
AN ACCOMMODATIONS PR OVIDER ON BOOKING TR ANSACTIONS NOT FACIL ITATED 28
BY AN ACCOMMODATIONS INTERMEDIARY . 29
(c) Except in Calvert County and St. Mary’s County, unpaid hotel rental tax is: 30
(1) a lien against the real and personal property of the person owing the 31
tax; and 32
14 SENATE BILL 979
(2) collectible in the same manner as the property tax may be collected 1
under the Tax – Property Article. 2
(D) (1) THE COMPTROLLER MAY FILE A CIVIL ACTION TO CO LLECT 3
UNPAID HOTEL RENTAL TAX FROM AN ACCOMMOD ATIONS INTERMEDIARY ON 4
BOOKING TRANSACTIONS FACILITATED BY THE A CCOMMODATIONS INTERM EDIARY. 5
(2) THE COMPTROLLER MAY COLLE CT UNPAID HOTEL RENTAL TAX 6
BY DISTRAINT FROM AN ACCOMMODATIONS INTER MEDIARY ON BOOKING 7
TRANSACTIONS FACILIT ATED BY THE ACCOMMOD ATIONS INTERMEDIARY . 8
20–428. 9
(a) (1) Subject to paragraph (2) of this subsection, to protect hotel rental tax 10
revenue, a county may require a hotel OR AN ACCOMMODATIONS PROVIDER to file 11
security with the county in an amount that the county determines. 12
(2) Cecil County, Talbot County, and Wicomico County may require 13
security under this section only for a hotel OR AN ACCOMMODATIONS PROVIDER that 14
has been in default. 15
(b) Security under this section shall be: 16
(1) a bond issued by a surety company that is: 17
(i) authorized to do business in the State; and 18
(ii) approved by the Insurance Commissioner as to solvency and 19
responsibility; 20
(2) cash; or 21
(3) security approved by the county. 22
(c) (1) If security is required under this section, the county shall give the hotel 23
OR ACCOMMODATIONS PR OVIDER notice of the amount of security. 24
(2) Within 5 days after a hotel OR AN ACCOMMODATIONS PROVIDER 25
receives notice that security is required, the hotel OR ACCOMMODATIONS PR OVIDER 26
shall: 27
(i) file the security; or 28
(ii) submit a written request for a hearing on the security 29
requirement. 30
SENATE BILL 979 15
(d) (1) If a hearing is requested under subsection (c) of this section, the county 1
shall hold a hearing to determine the necessity, propriety, and amount of the security. 2
(2) (i) The determination at the hearing is final. 3
(ii) The hotel OR ACCOMMODATIONS PR OVIDER shall comply 4
within 15 days after the hotel OR ACCOMMODATIONS PR OVIDER receives notice of the 5
determination. 6
(e) Without notice to the hotel OR ACCOMMODATIONS PR OVIDER that files 7
security under subsection (b)(2) or (3) of this section, the county at any time may: 8
(1) apply the cash to the hotel rental tax due; or 9
(2) sell the security and apply the proceeds of the sale to the hotel rental 10
tax due. 11
20–431. 12
(a) In this part the following words have the meanings indicated. 13
(B) (1) “ACCOMMODATION ” HAS THE MEANING STAT ED IN § 11–101 OF 14
THE TAX – GENERAL ARTICLE. 15
(2) “ACCOMMODATION ” INCLUDES THE RIGHT T O OCCUPY ANY OF 16
THE FOLLOWING AS A T RANSIENT GUEST : 17
(I) AN APARTMENT ; 18
(II) A COTTAGE; 19
(III) A HOSTELRY; 20
(IV) AN INN; 21
(V) A MOTEL; 22
(VI) A ROOMING HOUSE ; OR 23
(VII) A TOURIST HOME . 24
(C) “ACCOMMODATIONS INTERM EDIARY” HAS THE MEANING STAT ED IN § 25
11–101 OF THE TAX – GENERAL ARTICLE. 26
16 SENATE BILL 979
(D) “ACCOMMODATIONS PROVID ER” HAS THE MEANING STAT ED IN § 11–101 1
OF THE TAX – GENERAL ARTICLE. 2
(E) “BOOKING TRANSACTION ” HAS THE MEANING STATED IN § 11–101 OF 3
THE TAX – GENERAL ARTICLE. 4
[(b)] (F) “Hotel” has the meaning stated in § 20–401 of this subtitle. 5
[(c)] (G) “Hotel rental tax” [means the tax on a transient charge] HAS THE 6
MEANING STATED IN § 20–401 OF THIS SUBTITLE . 7
[(d) (1) “Transient charge” means a hotel charge for sleeping accommodations 8
for a period not exceeding 4 consecutive months. 9
(2) “Transient charge” does not include any hotel charge for: 10
(i) services; or 11
(ii) accommodations other than sleeping accommodations.] 12
(H) “SHORT–TERM RENTAL UNIT ” HAS THE MEANING STAT ED IN § 11–101 13
OF THE TAX – GENERAL ARTICLE. 14
(I) “TAXABLE PRICE” HAS THE MEANING STAT ED IN § 11–101 OF THE TAX – 15
GENERAL ARTICLE. 16
20–432. 17
(a) Except as provided in subsections (b) [and (c)], (C), AND (D) of this section, a 18
municipality may impose, by ordinance or resolution, a hotel rental tax. 19
(b) (1) In this subsection, “hotel rental tax revenue sharing arrangement” 20
includes: 21
(i) a requirement under §§ 20–415 through 20–422 of this subtitle 22
that a county distribute revenue from a county hotel rental tax to a municipality; or 23
(ii) any other hotel rental tax revenue sharing requirement, 24
agreement, or arrangement between a county and a municipality. 25
(2) A municipality in a county that has a hotel rental tax revenue sharing 26
arrangement between the municipality and the county may not impose a hotel rental tax 27
under this part. 28
(c) A municipality may not impose a hotel rental tax if the municipality is 29
located in a county that: 30 SENATE BILL 979 17
(1) distributes at least 50% of total county hotel rental tax revenues to 1
promote tourism in the county; or 2
(2) does not impose a tax on [a transient charge] THE TAXABLE PRICE 3
paid to a hotel OR AN ACCOMMODATIONS PROVIDER. 4
(D) A MUNICIPALITY MAY NOT: 5
(1) IMPOSE A TAX ON THE RENTAL OF AN ACCOMMO DATION, 6
INCLUDING A SHORT –TERM RENTAL , EXCEPT AS AUTHORIZED UNDER THIS SECTION ; 7
OR 8
(2) IMPOSE A HIGHER TAX RATE ON SHORT –TERM RENTAL UNITS 9
THAN ON OTHER ACCOMM ODATIONS. 10
20–433. 11
(C) IF A MUNICIPALITY MOD IFIES A HOTEL RENTAL TAX RATE UNDER THIS 12
SECTION, THE MUNICIPALITY SHA LL NOTIFY THE COMPTROLLER IN WRITIN G AT 13
LEAST 60 DAYS BEFORE THE MODI FIED RATE TAKES EFFE CT: 14
(1) MODIFY THE RATE EFFE CTIVE ON JULY 1 OF THE YEAR THAT THE 15
MUNICIPALITY DESIGNA TES; AND 16
(2) NOTIFY THE COMPTROLLER IN WRITIN G OF THE RATE CHANGE ON 17
OR BEFORE JANUARY 1 PRECEDING THE EFFECT IVE DATE OF THE RATE CHANGE. 18
20–434. 19
(A) [A] EXCEPT AS PROVIDE D IN SUBSECTION (B) OF THIS SECTION , A 20
municipality that imposes a hotel rental tax may: 21
(1) provide for the administration and collection of the tax; AND 22
(2) [provide for additional exemptions from the tax; and 23
(3)] impose penalties for failure to collect, report, or pay the tax. 24
(B) THE COMPTROLLER SHALL : 25
(1) COLLECT THE MUNICIPA L HOTEL RENTAL TAX F ROM 26
ACCOMMODATIONS INTER MEDIARIES IN THE SAM E MANNER AS THE COUN TY HOTEL 27
RENTAL TAX UNDER THI S SUBTITLE; AND 28
18 SENATE BILL 979
(2) DISTRIBUTE TO A MUNI CIPALITY, BEFORE THE LAST DAY OF THE 1
NEXT MONTH , THE HOTEL TAX REVENU E THAT IS COLLECTED ON BEHALF OF THE 2
MUNICIPALITY FROM AN ACCOMMODATIONS INTER MEDIARY DURING THE 3
PRECEDING MONTH . 4
(C) TO DEFRAY THE COST OF COLLECTING AND DISTR IBUTING THE HOTEL 5
RENTAL TAX UNDER THIS PART , THE COMPTROLLER MAY DISTR IBUTE TO AN 6
ADMINISTRATIVE COST ACCOUNT AN AMOUNT NO T TO EXCEED 1.5% OF THE HOTEL 7
RENTAL TAX REVENUE C OLLECTED EACH MONTH ON BEHALF OF A MUNIC IPALITY 8
FROM AN ACCOMMODATIO NS INTERMEDIARY . 9
(C) (D) (1) SUBJECT TO SUBSECTION (D) (E) OF THIS SECTION , TITLE 10
11 AND TITLE 13, SUBTITLE 3 OF THE TAX – GENERAL ARTICLE AND THIS TITL E 11
SHALL PREVAIL TO THE EXTENT OF ANY CONFLI CT WITH ANY LOCAL LA W, 12
ORDINANCE, OR RESOLUTION RELATI NG TO A MUNICIPAL HO TEL RENTAL TAX . 13
(2) ANY LOCAL LAW , ORDINANCE, OR RESOLUTION THAT I S 14
PREEMPTED UNDER PARA GRAPH (1) OF THIS SUBSECTION I S NOT REPEALED BUT 15
SHALL BE ADMINISTERE D IN CONFORMITY WITH STATE LAW. 16
(D) (E) BEGINNING JANUARY 1, 2028, TITLE 11 AND TITLE 13, SUBTITLE 17
3 OF THE TAX – GENERAL ARTICLE AND THIS TITL E SHALL PREVAIL TO T HE EXTENT 18
OF ANY CONFLICT WITH AN AGREEMENT BETWEEN A MUNICIPALITY AND A N 19
ACCOMMODATIONS INTER MEDIARY. 20
(E) (F) THE COMPTROLLER SHA LL GRANT A WAIVER FR OM THE FILING 21
OF A HOTEL RENTAL TA X RETURN IF AN ACCOM MODATIONS PROVIDER T HAT 22
PROVIDES ACCOMMODATI ONS EXCLUSIVELY THRO UGH AN ACCOMMODATION S 23
INTERMEDIARY : 24
(1) ATTESTS ON AN ANNUAL BASIS THAT BOOKING T RANSACTIONS 25
ARE FACILITATED BY T HE ACCOMMODATIONS INTER MEDIARY; AND 26
(2) REQUESTS A WAIVER FR OM FILING THE HOTEL RENTAL TAX 27
RETURNS REQUIRED UND ER THIS SUBTITLE . 28
(F) (G) AN ACCOMMODATIONS PRO VIDER IS LIABLE FOR HOTEL RENTAL 29
TAXES ON ANY BOOKING TRANSACTION NOT FACI LITATED BY AN ACCOMM ODATIONS 30
INTERMEDIARY . 31
20–436. 32
If a county has the authority under Part I of this subtitle or any other law to impose 33
a HOTEL RENTAL tax [on transient charges paid to hotels,] to accommodate a HOTEL 34 SENATE BILL 979 19
RENTAL tax imposed under this part by a municipality, the county may impose a HOTEL 1
RENTAL tax rate [on transient charges paid to hotels located] in the municipality that is 2
lower than the HOTEL RENTAL tax rate imposed [on transient charges paid to hotels] 3
outside the municipality. 4
20–603. 5
(a) By ordinance, Anne Arundel County may impose a sales or use tax on: 6
(1) fuel and utilities used by commercial and industrial businesses; 7
(2) residential, commercial, and industrial telephone service; and 8
(3) space rentals other than space rentals for the docking or storing of 9
boats. 10
(b) (1) Any revenues collected under subsection (a)(1) and (2) of this section in 11
the City of Annapolis shall be allocated and distributed in equal amounts to the City of 12
Annapolis and to Anne Arundel County. 13
(2) Except as otherwise provided in this subsection, any revenue generated 14
in the City of Annapolis from the tax on space rentals shall be collected and retained by the 15
City of Annapolis. 16
(3) Except as provided in [paragraph] PARAGRAPHS (6) AND (7) of this 17
subsection, any revenue generated in the City of Annapolis from the hotel tax shall be 18
collected by Anne Arundel County. 19
(4) From any revenue generated in the City of Annapolis from the hotel 20
tax, Anne Arundel County shall distribute: 21
(i) 3% to a special fund to be used only to provide funds to the 22
Annapolis Art in Public Places Commission; 23
(ii) 3% to a special fund to be used only to provide funds to the Arts 24
Council of Anne Arundel County, Inc.; 25
(iii) 17% to a special fund to be used only to provide funds to the 26
Annapolis and Anne Arundel County Conference and Visitors Bureau; and 27
(iv) 3% to the Affordable Housing Trust Fund established under § 28
20.30.070 of the Code of the City of Annapolis to be used only for housing assistance 29
payments. 30
(5) After making the distributions required under paragraph (4) of this 31
subsection, the balance of the revenue generated in the City of Annapolis from the hotel 32
tax shall be distributed to the City of Annapolis. 33 20 SENATE BILL 979
(6) (i) Anne Arundel County may authorize the City of Annapolis to 1
collect revenue generated in the City of Annapolis from the hotel tax. 2
(ii) If Anne Arundel County authorizes the City of Annapolis to 3
collect revenue generated in the City of Annapolis from the hotel tax, the City of Annapolis 4
shall distribute a percentage of the revenue in accordance with paragraph (4) of this 5
subsection and retain the balance of the revenue generated. 6
(7) THE COMPTROLLER SHALL : 7
(I) COLLECT THE HOTEL TA X IMPOSED UNDER SUBS ECTION 8
(A)(3) OF THIS SECTION FROM ACCOMMODATIONS INTER MEDIARIES IN THE MAN NER 9
PRESCRIBED IN SUBTITLE 4 OF THIS TITLE AND TITLE 11 OF THE TAX – GENERAL 10
ARTICLE; AND 11
(II) DISTRIBUTE BEFORE THE LAST DAY OF THE NEX T MONTH 12
THE HOTEL TAX REVENU E COLLECTED FROM ACCOM MODATIONS INTERMEDIA RIES 13
DURING THE PRECEDING MONTH IN THE MANNER PRESCR IBED IN THIS 14
SUBSECTION. 15
(8) TO DEFRAY THE COST OF COLLECTING AND DISTR IBUTING THE 16
HOTEL TAX UNDER THIS SECTION, THE COMPTROLLER MAY DISTRIBUTE TO AN 17
ADMINISTRATIVE COST ACCOUNT AN AMOUNT NO T TO EXCEED 1.5% OF THE HOTEL 18
TAX REVENUE COLLECTE D EACH MONTH ON BEHA LF OF ANNE ARUNDEL COUNTY 19
FROM AN ACCOMMODATIO NS INTERMEDIARY . 20
(f) The hotel tax authorized under this section does not apply to the sale of a right 21
to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility 22
that: 23
(1) is operated solely in support of the headquarters, a training facility, a 24
conference facility, an awards facility, or the campus of a corporation or other organization; 25
(2) provides lodging solely for employees, contractors, vendors, and other 26
invitees of the corporation that owns the dormitory or lodging facility; and 27
(3) does not offer lodging services to the general public. 28
Article – Tax – General 29
11–101. 30
(a) In this title the following words have the meanings indicated. 31
SENATE BILL 979 21
(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 TH E 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
22 SENATE BILL 979
(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 SENATE BILL 979 23
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 24 SENATE BILL 979
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 31
amenity 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 SENATE BILL 979 25
(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 T AX” MEANS THE HOTEL 20
RENTAL TAX IMPOSED U NDER: 21
(1) TITLE 20, SUBTITLE 4 OF THE LOCAL GOVERNMENT ARTICLE; 22
(2) § 20–603(A)(3) OF THE LOCAL GOVERNMENT ARTICLE; 23
(3) § 21–2 OF THE BALTIMORE CITY CODE; 24
(4) § 11–4–402 OF THE BALTIMORE COUNTY CODE; 25
(3) (5) § 20.400 OF THE HOWARD COUNTY CODE; AND 26
(6) § 52–16 OF THE MONTGOMERY COUNTY CODE; AND 27 26 SENATE BILL 979
(4) (7) § 10–218.1 OF THE PRINCE GEORGE’S COUNTY CODE. 1
(B) THE COMPTROLLER SHALL DEV ELOP A SINGLE TAX RE TURN FOR USE 2
BY AN ACCOMMODATIONS INTERMEDIARY THAT AG GREGATES THE LOCAL H OTEL 3
RENTAL TAXES THAT AN ACCOMMODATIONS INTER MEDIARY IS REQUIRED TO 4
COLLECT AND REMIT . 5
(C) EACH ACCOMMODATIONS I NTERMEDIARY SHALL CO MPLETE, UNDER 6
OATH, AND FILE WITH THE COMPTROLLER A HOTEL R ENTAL TAX RETURN FOR 7
LOCAL HOTEL RENTAL T AXES AND THE TAX IMP OSED UNDER THIS TITLE : 8
(1) ON OR BEFORE THE 25TH DAY OF THE MONTH THAT FOLLOWS THE 9
MONTH IN WHICH THE A CCOMMODATIONS INTERM EDIARY FACILITATES A BOOKING 10
TRANSACTION OR SALE FOR USE OF AN ACCOMM ODATION; AND 11
(2) FOR OTHER PERIODS AN D ON OTHER DATES THA T THE 12
COMPTROLLER SPECIFIES BY REGULATION , INCLUDING PERIODS IN WHICH THE 13
ACCOMMODATIONS INTER MEDIARY OR ACCOMMODA TIONS PROVIDER DOES NOT 14
FACILITATE ANY BOOKI NG TRANSACTION OR SA LE FOR USE OF AN 15
ACCOMMODATION . 16
(D) A RETURN SHALL REQUIRE AN ACCOMMODATIONS IN TERMEDIARY TO 17
STATE, FOR THE PERIOD THAT THE RETURN COVERS : 18
(1) THE GROSS PROCEEDS O F THE BUSINESS OF TH E 19
ACCOMMODATIONS INTER MEDIARY; 20
(2) THE TAXABLE PRICE OF SALES ON WHICH THE L OCAL HOTEL 21
RENTAL TAX WAS IMPOS ED; 22
(3) THE LOCAL HOTEL RENT AL TAX DUE; AND 23
(4) ANY ALLOWABLE DISCOU NTS, DEDUCTIONS , OR EXEMPTIONS . 24
(E) (1) IF THE COMPTROLLER APPROVES , AN ACCOMMODATIONS 25
INTERMEDIARY MAY FIL E A CONSOLIDATED RET URN IF THE ACCOMMODA TIONS 26
INTERMEDIARY ENGAGES IN MORE THAN ONE BUS INESS IN WHICH THE 27
ACCOMMODATIONS INTERMEDIA RY FACILITATES BOOKI NG TRANSACTIONS OR 28
SALES FOR USE OF AN ACCOMMODATION . 29
(2) THE COMPTROLLER SHALL REQ UIRE AN ACCOMMODATIO NS 30
INTERMEDIARY THAT FI LES A CONSOLIDATED R ETURN UNDER THIS SUB SECTION TO 31
PROVIDE HOTEL RENTAL TAX DATA THE COMPTROLLER DEEMS NEC ESSARY TO 32 SENATE BILL 979 27
ENSURE THE TAX IS CR EDITED AND DISTRIBUT ED TO THE APPROPRIAT E 1
JURISDICTION. 2
13–201. 3
In this subtitle, “tax information” means: 4
(1) any tax return, information return, declaration of estimated tax, 5
extension of time to file a return, or claim for refund under this article that is filed with the 6
tax collector by, on behalf of, or with respect to any person and any amendment or 7
supplement thereto, including supporting schedules, attachments, or lists that are 8
supplemental to or a part of the return; 9
(2) the amount of income or any other particulars disclosed in a tax return 10
required under this article, if the return contains return information, as defined in § 6103 11
of the Internal Revenue Code; 12
(3) any return or return information, as defined in § 6103 of the Internal 13
Revenue Code, required to be attached to or included in a tax return required under this 14
article; or 15
(4) any information contained in: 16
(i) an admissions and amusement tax return; 17
(ii) an alcoholic beverage tax return; 18
(iii) a bay restoration fee return; 19
(iv) a boxing and wrestling tax return; 20
(v) a digital advertising gross revenues tax return; 21
(vi) an E–9–1–1 fee return; 22
(vii) a financial institution franchise tax return; 23
(VIII) A HOTEL RENTAL TAX R ETURN; 24
[(viii)] (IX) an inheritance tax return; 25
[(ix)] (X) a Maryland estate tax return; 26
[(x)] (XI) a motor carrier tax return; 27
[(xi)] (XII) a motor fuel tax return; 28 28 SENATE BILL 979
[(xii)] (XIII) an other tobacco products tax return; 1
[(xiii)] (XIV) a public service company franchise tax return; 2
[(xiv)] (XV) a sales and use tax return; 3
[(xv)] (XVI) a savings and loan association franchise tax return; 4
[(xvi)] (XVII) a tire recycling fee return; 5
[(xvii)] (XVIII) a tobacco tax return; or 6
[(xviii)] (XIX) a transportation services assessment return. 7
13–302. 8
(a) [To] EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION , TO 9
determine whether a tax return is correct or otherwise to enforce a provision of this article, 10
a tax collector may: 11
(1) examine any records or other data that may be relevant or material to 12
the matters required to be included in a tax return; 13
(2) conduct an investigation; 14
(3) hold a hearing; 15
(4) administer oaths; 16
(5) take testimony and other evidence; and 17
(6) subpoena: 18
(i) any person; or 19
(ii) any relevant document. 20
(b) If the Comptroller determines that the taxpayer’s records are so detailed, 21
complex, or voluminous that an audit of all detailed records would be unreasonable or 22
impractical, the Comptroller may compute the sales and use tax by using scientific random 23
sampling techniques. 24
(c) If a person fails to comply with a subpoena or fails to testify on any matter on 25
which the person lawfully may be interrogated, on petition of a tax collector, a circuit court 26 SENATE BILL 979 29
or, if the subpoena is issued under authority of an orphans’ court, the orphans’ court may 1
pass an order directing compliance with the subpoena or compelling testimony. 2
(D) (1) AN EXAMINATION , AUDIT, OR OTHER INVESTIGATI ON OF AN 3
ACCOMMODATIONS INTER MEDIARY RELATED TO T HE SALES AND USE TAX OR HOTEL 4
RENTAL TAX SHALL BE CONDUCTED ON THE BAS IS OF: 5
(I) THE TAXPAYER IDENTIF ICATION NUMBER ASSOC IATED 6
WITH THE ACCOMMODATI ONS INTERMEDIARY THA T FILED THE TAX RETU RN; AND 7
(II) RETURNS FILED BY THE ACCOMMODATIONS INTER MEDIARY 8
WITH THE COMPTROLLER . 9
(2) THE COMPTROLLER MAY NOT D IRECTLY OR INDIRECTL Y 10
CONDUCT AN EXAMINATI ON, AUDIT, OR OTHER INVESTIGATI ON OF AN INDIVIDUAL 11
ACCOMMODATIONS PROVI DER FOR BOOKING TRAN SACTIONS FACILITATED BY THE 12
ACCOMMODATIONS INTER MEDIARY. 13
(3) AN EXAMINATION , AUDIT, OR OTHER INVESTIGATION UNDER THIS 14
SUBSECTION, IF REQUESTED BY AN A CCOMMODATIONS INTERM EDIARY, SHALL 15
INCLUDE ALL TAX TYPE S FOR WHICH THE ACCO MMODATIONS INTERMEDI ARY IS 16
REQUIRED TO COLLECT AND REMIT UNDER TITLE 11 OF THIS ARTICLE. 17
(4) THE COMPTROLLER MAY RE QUEST THE FOLLOWING 18
INFORMATION FROM AN ACCOMMODATIONS INTER MEDIARY IN THE COURS E OF AN 19
EXAMINATION , AUDIT, OR OTHER INVESTIGATI ON ONLY TO THE EXTEN T THAT THE 20
INFORMATION IS NECES SARY FOR THE ENFORCE MENT OF THE TAX COLL ECTION 21
OBLIGATIONS IMPOSED ON THE ACCOMMODATIONS INTERMED IARY: 22
(I) PERSONALLY IDENTIFIA BLE INFORMATION OF A N 23
ACCOMMODATIONS PROVI DER; 24
(II) A PHYSICAL ADDRESS O F AN ACCOMMODATION 25
FACILITATED BY AN AC COMMODATIONS INTERME DIARY; OR 26
(III) THE AMOUNTS TRANSMIT TED FROM THE 27
ACCOMMODATIO NS INTERMEDIARY TO T HE ACCOMMODATIONS PR OVIDER. 28
(5) INFORMATION PROVIDED BY AN ACCOMMODATIONS 29
INTERMEDIARY UNDER T HIS SECTION IS CONFI DENTIAL TAX INFORMAT ION UNDER 30
SUBTITLE 2 OF THIS TITLE. 31
13–508. 32
30 SENATE BILL 979
(a) Within 30 days after the date on which a notice of assessment of the 1
admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, HOTEL 2
RENTAL TAX, income tax, motor carrier tax, motor fuel tax, public service company 3
franchise tax, financial institution franchise tax, sales and use tax, or tobacco tax is mailed, 4
a person or governmental unit against which the assessment is made may submit to the 5
tax collector: 6
(1) an application for revision of the assessment; or 7
(2) except for the public service company franchise tax, if the assessment 8
is paid, a claim for refund. 9
(b) If a person or governmental unit fails to submit an application for revision or 10
claim for refund within the time allowed in subsection (a) of this section, the assessment 11
becomes final. 12
(c) The Comptroller or an employee of the Comptroller’s office expressly 13
designated by the Comptroller promptly: 14
(1) (i) shall hold an informal hearing on a person’s or governmental 15
unit’s admissions and amusement tax, alcoholic beverage tax, boxing and wrestling tax, 16
HOTEL RENTAL TAX , income tax, motor carrier tax, motor fuel tax, sales and use tax, or 17
tobacco tax application for revision or claim for refund under subsection (a) of this section; 18
and 19
(ii) after the hearing: 20
1. shall act on the application for revision; and 21
2. may assess any additional tax, penalty, and interest due; 22
and 23
(2) shall mail to the person or governmental unit a notice of final 24
determination. 25
(d) The Department promptly: 26
(1) (i) shall act on a person’s public service company franchise tax or 27
financial institution franchise tax application for revision under subsection (a) of this 28
section; or 29
(ii) 1. shall hold an informal hearing after giving reasonable 30
notice to the person; and 31
2. after the hearing: 32
A. shall act on the application for revision; and 33 SENATE BILL 979 31
B. may assess any additional tax, penalty, and interest due; 1
and 2
(2) shall mail to the person a notice of final determination. 3
13–509. 4
(a) Notwithstanding a person’s failure to file a timely application for revision or 5
claim for refund of an assessment of the admissions and amusement tax, alcoholic beverage 6
tax, boxing and wrestling tax, HOTEL RENTAL TAX , income tax, motor carrier tax, motor 7
fuel tax, sales and use tax, or tobacco tax under § 13–508(a) of this subtitle, the Comptroller 8
or the Comptroller’s designee may issue an order decreasing or abating an assessment to 9
correct an erroneous assessment. 10
(b) If action is taken under subsection (a) of this section, the order shall state 11
clearly the reasons for decreasing or abating the assessment. 12
(c) Any order issued by the Comptroller under subsection (a) of this section shall 13
be final and not subject to appeal. 14
(d) The Comptroller’s refusal to enter an order under subsection (a) of this section 15
shall be final and not subject to appeal. 16
Article 14 – Howard County 17
20.400. 18
(a) Howard County may impose, by law, and collect a sales or use tax on room 19
rentals in the county for sleeping accommodations for transients. 20
(b) (1) The rate of the tax authorized under this section may not exceed seven 21
EIGHT percent. 22
(2) Subject to the annual County budget and appropriation process, the 23
County shall distribute any revenue attributable to a tax rate greater than five percent 24
BUT NOT GREATER THAN SEVEN PERCENT imposed by the County under this subsection 25
as follows: 26
(i) Two–thirds to the Howard County Tourism Council; and 27
(ii) One–third to the Howard County Economic De velopment 28
Authority. 29
(3) SUBJECT TO THE ANNUAL COUNTY BUDGET AND APP ROPRIATION 30
PROCESS, THE COUNTY SHALL DISTRIBU TE ANY REVENUE ATTRI BUTABLE TO A TAX 31 32 SENATE BILL 979
RATE GREATER THAN SE VEN PERCENT IMPOSED BY THE COUNTY UNDER THIS 1
SUBSECTION TO THE HOWARD COUNTY TOURISM COUNCIL. 2
(c) SUBJECT TO SUBSECTION (E) OF THIS SECTION , Howard County may 3
adopt, by law, any procedural or enforcement provision that the County Council considers 4
to be necessary or appropriate for administration or collection of the tax authorized under 5
this section, including, without limitation: 6
(1) Requiring hotels in the County to: 7
(i) Collect the tax from patrons; 8
(ii) Hold the tax in trust for the County; 9
(iii) Pay the tax collected and file periodic returns with the County; 10
and 11
(iv) File a bond or other security for payment of the tax in an amount 12
that the County Council considers to be necessary; 13
(2) [Providing a tax exemption for classes of hotels; 14
(3)] Imposing interest and penalties for late payment of the tax; 15
[(4)] (3) Making unpaid tax a lien against the real and personal property 16
of the person owing the tax; and 17
[(5)] (4) Providing for collection of the tax by distraint. 18
(d) The room rental tax authorized under this section does not apply to the sale 19
of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging 20
facility that: 21
(1) Is operated solely in support of the headquarters, a training facility, a 22
conference facility, an awards facility, or the campus of a corporation or other organization; 23
(2) Provides lodging solely for employees, contractors, vendors, and other 24
invitees of the corporation that owns the dormitory or lodging facility; and 25
(3) Does not offer lodging services to the general public. 26
(e) (1) (i) In this subsection the following words have the meanings 27
indicated. 28
(II) ACCOMMODATIONS INTERM EDIARY HAS THE MEANI NG 29
STATED IN § 11–101 OF THE TAX – GENERAL ARTICLE. 30 SENATE BILL 979 33
[(ii)] (III) 1. Room rental fee means a fee charged by [a room 1
rental] AN ACCOMMODATIONS intermediary to a transient for facilitating the rental of a 2
room. 3
2. Room rental fee does not include a commission paid by a 4
hotelkeeper to a person after facilitating the rental of a room. 5
[(iii) 1. Room rental intermediary means a person, other than a 6
hotelkeeper, who facilitates the rental of a room and charges a transient for the rental of a 7
room. 8
2. For purposes of this subparagraph, a person shall be 9
considered to facilitate the rental of a room if the person brokers, coordinates, or in any 10
other way arranges for the rental of a room by a transient.] 11
(2) The room rental tax authorized under this section applies to the total 12
charge for the room rental of a room, including any room rental fee but not including any 13
tax. 14
(3) THE COMPTROLLER SHALL : 15
(I) COLLECT COLLECT THE ROOM RENTAL TAX AUTHORIZED 16
UNDER THIS SECTION F ROM ACCOMMODATIONS I NTERMEDIARIES IN THE MANNER 17
PRESCRIBED IN TITLE 20, SUBTITLE 4 OF THE LOCAL GOVERNMENT ARTICLE AND 18
TITLE 11 OF THE TAX – GENERAL ARTICLE; AND 19
(II) DISTRIBUTE TO THE COUNTY BY THE L AST DAY OF THE 20
NEXT MONTH THE ROOM RENTAL TAX REVENUE C OLLECTED FROM 21
ACCOMMODATIONS INTER MEDIARIES DURING THE PRECEDING MONTH . 22
(4) TO DEFRAY THE COST OF COLLECTING AND DISTR IBUTING THE 23
ROOM RENTAL TAX UNDE R THIS SECTION, THE COMPTROLLER MAY DISTR IBUTE TO 24
AN ADMINISTRATIVE CO ST ACCOUNT AN AMOUNT NOT TO EXCEED 1.5% OF THE 25
ROOM RENTAL TAX REVE NUE COLLECTED EACH M ONTH ON BEHALF OF TH E COUNTY 26
FROM AN ACCOMMODATIO NS INTERMEDIARY . 27
Article 17 – Prince George’s County 28
10–218.01. 29
(a) [The] SUBJECT TO SUBSECTION (D) OF THIS SECTION , THE County 30
Council of Prince George’s County may levy and impose a tax of not exceeding ten percent 31
(10%) on all gross amounts of money paid to the owners or operators of hotels and motels 32
in Prince George’s County beginning July 1, 1975, by transient guests or tenants for 33 34 SENATE BILL 979
renting, using or occupying a room or rooms in hotels and motels in Prince George’s County 1
to be paid and collected pursuant to rules and regulations adopted by the County Council. 2
(b) (1) [Any] SUBJECT TO SUBSECTION (D) OF THIS SECTION , ANY 3
revenues generated under the authority of this Section from a hotel and motel tax within 4
the boundaries of a municipal corporation located in Prince George’s County shall be 5
collected by the County. 6
(2) The County shall distribute to the municipal corporation within which 7
the revenues were generated 50% of the revenues collected by the County from hotels and 8
motels in the municipal corporation. 9
(c) The tax authorized under this section does not apply to the sale of a right to 10
occupy a room or lodgings as a transient guest at a dormitory or other lodging 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
(D) THE COMPTROLLER SHALL : 17
(1) COLLECT THE TAX AUTH ORIZED UNDER THIS SE CTION FROM 18
ACCOMMODATIONS INTER MEDIARIES IN THE MAN NER PRESCRIBED IN TITLE 20, 19
SUBTITLE 4 OF THE LOCAL GOVERNMENT ARTICLE AND TITLE 11 OF THE TAX – 20
GENERAL ARTICLE; AND 21
(2) DISTRIBUTE BEFORE THE LAST DAY OF THE NEXT MONTH : 22
(I) 50% OF THE REVENUE COLLE CTED WITHIN A MUNICI PAL 23
CORPORATION DURING THE PRECEDING MONTH TO THE MUNICIPAL COR PORATION; 24
AND 25
(II) ALL REMAINING REVENU E TO THE COUNTY COUNTY. 26
(E) TO DEFRAY THE COST OF COLLECTING AND DI STRIBUTING THE TAX 27
AUTHORIZED UNDER THI S SECTION, THE COMPTROLLER MAY DISTR IBUTE TO AN 28
ADMINISTRATIVE COST ACCOUNT AN AMOUNT NO T TO EXCEED 1.5% OF THE TAX 29
REVENUE COLLECTED EA CH MONTH ON BEHALF O F THE COUNTY FROM AN 30
ACCOMMODATIONS INTER MEDIARY. 31
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 32
1, 2026 2027. 33