The county tax collector may adopt regulations necessary to carry out this subtitle and to define any terms used in this subtitle. §20-401. IN EFFECT (a) In this part the following words have the meanings indicated. (b) (1) "Hotel" means an establishment that offers sleeping accommodations for compensation. (2) "Hotel" includes: (i) an apartment; (ii) a cottage; (iii) a hostelry; (iv) an inn; (v) a motel; (vi) a rooming house; or (vii) a tourist home. (c) "Hotel rental tax" means the tax on a transient charge. (d) (1) (i) Except as provided in subparagraphs (ii), (iii), and (iv) of this paragraph, "transient charge" means a hotel charge for sleeping accommodations for a period not exceeding 4 consecutive months. (ii) In Carroll County, "transient charge" means a hotel charge for sleeping accommodations for a period not exceeding 25 days. (iii) In Frederick County, "transient charge" means a hotel charge for sleeping accommodations for a period not exceeding 90 days. (iv) In Garrett County and Washington County, "transient charge" means a hotel charge for sleeping accommodations for a period not exceeding 30 days. (2) "Transient charge" does not include any hotel charge for: (i) services; or (ii) accommodations other than sleeping accommodations. (e) "Western Maryland code county" means a code county in the Western Maryland class as established under § 9-302 of this article. §20-401. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) In this part the following words have the meanings indicated. (b) (1) "Accommodation" has the meaning stated in § 11-101 of the Tax - General Article. (2) "Accommodation" includes the right to occupy any of the following as a transient guest: (i) an apartment; (ii) a cottage; (iii) a hostelry; (iv) an inn; (v) a motel; (vi) a rooming house; or (vii) a tourist home. (c) "Accommodations intermediary" has the meaning stated in § 11-101 of the Tax - General Article. (d) "Accommodations provider" has the meaning stated in § 11-101 of the Tax - General Article. (e) "Booking transaction" has the meaning stated in § 11-101 of the Tax - General Article. (f) (1) "Hotel" means an establishment that offers sleeping accommodations for compensation. (2) "Hotel" includes: (i) an apartment; (ii) a cottage; (iii) a hostelry; (iv) an inn; (v) a motel; (vi) a rooming house; (vii) a tourist home; or (viii) a short-term rental unit. (g) "Hotel rental tax" means the tax on the taxable price paid for a booking transaction. (h) "Short-term rental unit" has the meaning stated in § 11-101 of the Tax - General Article. (i) "Taxable price" has the meaning stated in § 11-101 of the Tax - General Article. (j) "Western Maryland code county" means a code county in the Western Maryland class as established under § 9-302 of this article. §20-402. IN EFFECT (a) This part applies only to: (1) subject to subsection (b) of this section, a charter county; (2) a code county; (3) Calvert County; (4) Carroll County; (5) Cecil County; (6) Garrett County; (7) St. Mary's County; (8) Somerset County; and (9) Washington County. (b) To the extent this part conflicts with another law that applies to a charter county, the other law shall prevail over this part. §20-402. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) This part applies to each county in the State. (b) To the extent this part conflicts with another law that applies to a county, this part shall prevail over the other law. §20-402.1. NOT IN EFFECT ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** This subtitle applies to an accommodations intermediary only if the accommodations intermediary facilitates: (1) booking transactions or sales for use of an accommodation in the State totaling $100,000 or more in the previous or current calendar year; or (2) 200 or more booking transactions or sales for use of an accommodation in the State in the previous or current calendar year. §20-403. IN EFFECT (a) Except as provided in § 20-404 of this subtitle, a county may impose, by resolution, a hotel rental tax. (b) (1) This subsection applies only to Calvert County, Charles County, and St. Mary's County. (2) The governing body of a county shall hold a public hearing before imposing a hotel rental tax. (3) The hearing: (i) shall be advertised twice in a newspaper of general circulation in the county at least 10 days before the hearing; and (ii) may not be part of the annual budget hearing. §20-403. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Except as provided in § 20-404 of this subtitle, a county may impose, by resolution, a hotel rental tax. (b) (1) This subsection applies only to Calvert County, Charles County, and St. Mary's County. (2) The governing body of a county shall hold a public hearing before imposing a hotel rental tax. (3) The hearing: (i) shall be advertised twice in a newspaper of general circulation in the county at least 10 days before the hearing; and (ii) may not be part of the annual budget hearing. (c) (1) Subject to subsection (d) of this section, Titles 1, 2, and 11 and Title 13, Subtitle 3 of the Tax - General Article and this title shall prevail to the extent of any conflict with any local law, ordinance, or resolution relating to the county hotel rental tax. (2) Any local law, ordinance, or resolution that is preempted under paragraph (1) of this subsection is not repealed but shall be administered in conformity with State law. (d) Beginning January 1, 2028, Titles 1, 2, and 11 and Title 13, Subtitle 3 of the Tax - General Article and this title shall prevail to the extent of any conflict with an agreement between a county and an accommodations intermediary. §20-404. IN EFFECT (a) The hotel rental tax does not apply to the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that: (1) is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization; (2) provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and (3) does not offer lodging services to the general public. (b) By resolution, Calvert County and St. Mary's County may provide a tax exemption for classes of hotels. (c) In Carroll County, the hotel rental tax does not apply to a hotel with 10 or fewer sleeping rooms. (d) Cecil County may impose the hotel rental tax only on a transient charge paid to a hotel located in any part of Cecil County that: (1) is specified by the governing body of Cecil County as a population center; (2) is not larger than 10 square miles in geographic area; and (3) has a population of at least 6,000 residents. (e) In Frederick County, the hotel rental tax does not apply to a hotel with: (1) 10 or fewer sleeping rooms in its main building; and (2) not more than 20 additional sleeping rooms in auxiliary structures on the hotel's property. (f) In Washington County, the hotel rental tax does not apply to a transient charge paid to a hotel by: (1) the federal government; (2) a state; or (3) a unit or instrumentality of a state or the federal government. §20-404. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) The hotel rental tax does not apply to the sale of a right to occupy an accommodation as a transient guest at a dormitory or other lodging facility that: (1) is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization; (2) provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and (3) does not offer lodging services to the general public. (b) A county may not impose a higher tax rate on the sale of a right to occupy a short-term rental unit than it imposes on the rental of any other accommodation. §20-405. IN EFFECT (a) Subject to this section, the hotel rental tax rate is the rate that the county sets by resolution. (b) The hotel rental tax rate may not exceed: (1) except as otherwise provided in this section, 3% in a code county; (2) 3% in Cecil County; (3) 4% in Talbot County; (4) 5% in Calvert County, Carroll County, Charles County, Dorchester County, Frederick County, St. Mary's County, and Somerset County; (5) 6% in Wicomico County; and (6) 8% in Garrett County. (c) With the unanimous consent of the county commissioners: (1) a code county other than an Eastern Shore code county or a Western Maryland code county may set a hotel rental tax rate up to 5%; (2) an Eastern Shore code county may set a hotel rental tax rate up to 6%; and (3) a Western Maryland code county may set a hotel rental tax rate up to 8%. (d) The hotel rental tax rate in Washington County is 6%. §20-405. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Subject to this section, the hotel rental tax rate is the rate that the county sets by resolution. (b) The hotel rental tax rate may not exceed: (1) except as otherwise provided in this section, 3% in a code county; (2) 3% in Cecil County; (3) 4% in Talbot County; (4) 5% in Calvert County, Carroll County, Charles County, Dorchester County, Frederick County, St. Mary's County, and Somerset County; (5) 6% in Wicomico County; and (6) 8% in Garrett County. (c) With the unanimous consent of the county commissioners: (1) a code county other than an Eastern Shore code county or a Western Maryland code county may set a hotel rental tax rate up to 5%; (2) an Eastern Shore code county may set a hotel rental tax rate up to 6%; and (3) a Western Maryland code county may set a hotel rental tax rate up to 8%. (d) The hotel rental tax rate in Washington County is 6%. (e) If a county modifies a hotel rental tax rate under this section, the county shall: (1) modify the rate effective on July 1 of the year that the county designates; and (2) notify the Comptroller in writing of the rate change on or before January 1 preceding the effective date of the rate change. §20-406. IN EFFECT (a) A hotel shall: (1) give a person who is required to pay a transient charge a bill that identifies the transient charge as an item separate from any other charge; and (2) collect the hotel rental tax from the person who pays the transient charge. (b) A hotel shall hold any hotel rental tax collected in trust for the county that imposes the tax until the hotel pays the tax to that county as required under this part. §20-406. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) A hotel or an accommodations provider shall: (1) give a person who is required to pay a hotel rental tax a bill that identifies the taxable price as an item separate from any other charge; (2) collect the hotel rental tax from the person who pays the taxable price; and (3) hold any hotel rental tax collected in trust for the county that imposes the tax until the hotel pays the tax to that county as required under this part. (b) For booking transactions and sales for use of an accommodation, an accommodations intermediary shall: (1) give a person who is required to pay a hotel rental tax a bill that identifies the taxable price as an item separate from any other charge; (2) collect the hotel rental tax from the person who pays the taxable price; and (3) hold any hotel rental tax collected in trust for the county that imposes the tax until the accommodations intermediary pays the tax to the Comptroller in accordance with § 11-502.3 of the Tax - General Article. §20-407. IN EFFECT A person shall pay the hotel rental tax to the hotel when the person pays the transient charge. §20-407. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) A person shall pay the hotel rental tax to the hotel or accommodations provider when the person pays the taxable price. (b) A person shall pay the hotel rental tax to the accommodations intermediary when the person pays the taxable price for a booking transaction facilitated by the accommodations intermediary. §20-407.1. NOT IN EFFECT ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) An accommodations intermediary shall collect the hotel rental tax under this subtitle on a booking transaction for an accommodation in the State facilitated by the accommodations intermediary. (b) An accommodations intermediary or other appropriate party shall refund to a buyer the proportionate amount of the hotel rental tax that the buyer has paid if: (1) a sale is rescinded or canceled; or (2) the taxable price is wholly or partially repaid or credited. (c) An accommodations intermediary shall report the hotel rental tax collected under this section separately from the sales and use tax collected by the accommodations intermediary under Title 11 of the Tax - General Article. (d) An accommodations intermediary that facilitates a booking transaction for a buyer on behalf of an accommodations provider shall: (1) remit to the Comptroller the hotel rental tax under this subtitle in the manner and on the form prescribed by the Comptroller; (2) be solely liable to collect the hotel rental tax from the buyer for transactions facilitated by the accommodations intermediary; (3) be subject to audit, examination, investigation, and assessment solely by the Comptroller under Title 13 of the Tax - General Article; and (4) be entitled to the procedural rights set forth under Title 13 of the Tax - General Article, including the right to seek a refund for the overpayment of taxes, the right to appeal a tax assessment, and the right to seek judicial review of a determination made by the Comptroller. (e) (1) An accommodations provider shall remit the hotel rental tax due on a sale or booking transaction that is not facilitated by an accommodations intermediary to the county that imposes the tax. (2) (i) An accommodations provider and an accommodations intermediary may enter into an agreement to determine the party that is responsible for remitting the hotel rental tax to the Comptroller if either party is a vendor in the State under § 11-401 of the Tax - General Article. (ii) The party that agrees to remit the tax under subparagraph (i) of this paragraph shall be the sole party held liable for the collection and payment of the hotel rental tax. §20-408. IN EFFECT A hotel shall complete, sign, and file a hotel rental tax return with: (1) except as provided in item (2) of this section, a code county, on or before the 10th day of each month; and (2) (i) Cecil County, on or before the 10th day of each month; (ii) Talbot County and Wicomico County, on or before the 20th day of each month; (iii) a code county in the Eastern Shore class established in § 9-302 of this article, Calvert County, Carroll County, Charles County, Dorchester County, Frederick County, Garrett County, St. Mary's County, and Somerset County, on or before the 21st day of each month; and (iv) Washington County, on or before the 25th day of each month. §20-408. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) A hotel or an accommodations provider shall complete, sign, and file a hotel rental tax return with: (1) except as provided in item (2) of this subsection, a code county, on or before the 10th day of each month; and (2) (i) Cecil County, on or before the 10th day of each month; (ii) Talbot County and Wicomico County, on or before the 20th day of each month; (iii) a code county in the Eastern Shore class established in § 9-302 of this article, Calvert County, Carroll County, Charles County, Dorchester County, Frederick County, Garrett County, St. Mary's County, and Somerset County, on or before the 21st day of each month; and (iv) Washington County, on or before the 25th day of each month. (b) An accommodations intermediary shall file a hotel rental tax return with the Comptroller on or before the 25th day of the month. (c) The Comptroller shall grant a waiver from the filing of a hotel rental tax return if an accommodations provider that provides accommodations exclusively through an accommodations intermediary: (1) attests on an annual basis that booking transactions are facilitated by the accommodations intermediary; and (2) requests a waiver from filing the hotel rental tax return required under this title. §20-409. IN EFFECT A hotel rental tax return for a county: (1) shall be made on the form that the county requires; and (2) shall contain the information that the county requires, including the amount of: (i) transient charges paid to the hotel during the prior calendar month; and (ii) the hotel rental tax required to be collected during the prior calendar month. §20-409. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) For a booking transaction that is not facilitated by an accommodations intermediary, a hotel rental tax return for a county: (1) shall be made on the form that the county requires; and (2) shall contain the information that the county requires, including the amount of: (i) taxable price paid to the hotel or accommodations provider during the prior calendar month; and (ii) the hotel rental tax required to be collected during the prior calendar month. (b) For a booking transaction that is facilitated by an accommodations intermediary, the hotel rental tax return shall be filed in the manner and on the form that the Comptroller requires under § 11-502.3 of the Tax - General Article. §20-410. IN EFFECT A hotel shall pay to the county the hotel rental tax collected for a calendar month with the return that covers that month. §20-410. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) A hotel or an accommodations provider shall pay to the county the hotel rental tax collected for a calendar month with the return that covers that month. (b) An accommodations intermediary shall pay to the Comptroller the hotel rental tax collected for a calendar month with the return that covers that month. §20-411. IN EFFECT (a) Except in Calvert County, Carroll County, Charles County, St. Mary's County, and Washington County, a hotel is allowed, for administrative costs, a discount equal to 1.5% of the gross amount of hotel rental tax collected if, on or before the due date, the hotel: (1) files the hotel rental tax return; and (2) pays the hotel rental tax. (b) In Calvert County, Carroll County, Charles County, St. Mary's County, and Washington County, the county commissioners may determine whether a hotel is eligible to receive a discount. §20-411. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Except in Calvert County, Carroll County, Charles County, St. Mary's County, and Washington County, a hotel, an accommodations intermediary, or an accommodations provider is allowed, for administrative costs, a discount equal to 1.5% of the gross amount of hotel rental tax collected if, on or before the due date, the hotel, accommodations intermediary, or accommodations provider: (1) files the hotel rental tax return; and (2) pays the hotel rental tax. (b) In Calvert County, Carroll County, Charles County, St. Mary's County, and Washington County, the county commissioners may determine whether a hotel, an accommodations intermediary, or an accommodations provider is eligible to receive a discount.
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