(a) (1) On or before October 1 of each year, a Western Maryland code county shall prepare a report on the hotel rental tax. (2) The report shall be published in a newspaper of general circulation in the county and posted on the county's Internet Web site. (3) The report shall include: (i) the amount of revenue the county collected from the hotel rental tax in the previous fiscal year; (ii) an itemized statement of the use of hotel rental tax revenue; and (iii) the name and salary of each position in the county unit that administers the hotel rental tax. (b) A Western Maryland code county shall provide a copy of any audits that relate to the hotel rental tax to the county Senate and House Delegations to the General Assembly. §20-425. IN EFFECT (a) If a hotel fails to pay the hotel rental tax as required under this part, the hotel shall pay interest on the unpaid tax from the date on which the hotel is required to pay the tax to the date that the tax is paid. (b) The interest rate for each month or fraction of a month is: (1) for Cecil County, Dorchester County, Talbot County, Washington County, and Wicomico County, 1%; and (2) for any other county, 0.5%. §20-425. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) If a hotel, an accommodations provider, or an accommodations intermediary fails to pay the hotel rental tax as required under this part, the hotel, accommodations provider, or accommodations intermediary shall pay interest on the unpaid tax from the date on which the hotel, accommodations provider, or accommodations intermediary is required to pay the tax to the date that the tax is paid. (b) The interest rate for each month or fraction of a month is: (1) for Cecil County, Dorchester County, Garrett County, Talbot County, Washington County, and Wicomico County, 1%; and (2) for any other county, 0.5%. §20-426. IN EFFECT (a) Except in Talbot County or Wicomico County, if a hotel fails to pay the hotel rental tax to a county within 1 month after the payment is due under § 20-410 of this subtitle, the hotel shall pay a tax penalty of 10% of the unpaid tax. (b) If a hotel fails to pay the hotel rental tax to Talbot County or Wicomico County within 120 days after the payment is due under § 20-410 of this subtitle, the hotel shall pay a tax penalty of 10% of the unpaid tax. §20-426. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Except in Wicomico County, if a hotel, an accommodations provider, or an accommodations intermediary required to collect the hotel rental tax fails to pay the hotel rental tax to a county within 1 month after the payment is due under § 20- 410 of this subtitle, the hotel, accommodations provider, or accommodations intermediary shall pay a tax penalty of 10% of the unpaid tax. (b) If a hotel, an accommodations provider, or an accommodations intermediary required to collect the hotel rental tax fails to pay the hotel rental tax to Wicomico County within 120 days after the payment is due under § 20-410 of this subtitle, the hotel, accommodations provider, or accommodations intermediary shall pay a tax penalty of 10% of the unpaid tax. §20-427. IN EFFECT (a) A county may file a civil action to collect unpaid hotel rental tax. (b) A county may collect unpaid hotel rental tax by distraint. (c) Except in Calvert County and St. Mary's County, unpaid hotel rental tax is: (1) a lien against the real and personal property of the person owing the tax; and (2) collectible in the same manner as the property tax may be collected under the Tax - Property Article. §20-427. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) A county may file a civil action to collect unpaid hotel rental tax from a hotel or an accommodations provider on booking transactions not facilitated by an accommodations intermediary. (b) A county may collect unpaid hotel rental tax by distraint from a hotel or an accommodations provider on booking transactions not facilitated by an accommodations intermediary. (c) Except in Calvert County and St. Mary's County, unpaid hotel rental tax is: (1) a lien against the real and personal property of the person owing the tax; and (2) collectible in the same manner as the property tax may be collected under the Tax - Property Article. (d) (1) The Comptroller may file a civil action to collect unpaid hotel rental tax from an accommodations intermediary on booking transactions facilitated by the accommodations intermediary. (2) The Comptroller may collect unpaid hotel rental tax by distraint from an accommodations intermediary on booking transactions facilitated by the accommodations intermediary. §20-428. IN EFFECT (a) (1) Subject to paragraph (2) of this subsection, to protect hotel rental tax revenue, a county may require a hotel to file security with the county in an amount that the county determines. (2) Cecil County, Talbot County, and Wicomico County may require security under this section only for a hotel that has been in default. (b) Security under this section shall be: (1) a bond issued by a surety company that is: (i) authorized to do business in the State; and (ii) approved by the Insurance Commissioner as to solvency and responsibility; (2) cash; or (3) security approved by the county. (c) (1) If security is required under this section, the county shall give the hotel notice of the amount of security. (2) Within 5 days after a hotel receives notice that security is required, the hotel shall: (i) file the security; or (ii) submit a written request for a hearing on the security requirement. (d) (1) If a hearing is requested under subsection (c) of this section, the county shall hold a hearing to determine the necessity, propriety, and amount of the security. (2) (i) The determination at the hearing is final. (ii) The hotel shall comply within 15 days after the hotel receives notice of the determination. (e) Without notice to the hotel that files security under subsection (b)(2) or (3) of this section, the county at any time may: (1) apply the cash to the hotel rental tax due; or (2) sell the security and apply the proceeds of the sale to the hotel rental tax due. §20-428. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) (1) Subject to paragraph (2) of this subsection, to protect hotel rental tax revenue, a county may require a hotel or an accommodations provider to file security with the county in an amount that the county determines. (2) Cecil County, Talbot County, and Wicomico County may require security under this section only for a hotel or an accommodations provider that has been in default. (b) Security under this section shall be: (1) a bond issued by a surety company that is: (i) authorized to do business in the State; and (ii) approved by the Insurance Commissioner as to solvency and responsibility; (2) cash; or (3) security approved by the county. (c) (1) If security is required under this section, the county shall give the hotel or accommodations provider notice of the amount of security. (2) Within 5 days after a hotel or an accommodations provider receives notice that security is required, the hotel or accommodations provider shall: (i) file the security; or (ii) submit a written request for a hearing on the security requirement. (d) (1) If a hearing is requested under subsection (c) of this section, the county shall hold a hearing to determine the necessity, propriety, and amount of the security. (2) (i) The determination at the hearing is final. (ii) The hotel or accommodations provider shall comply within 15 days after the hotel or accommodations provider receives notice of the determination. (e) Without notice to the hotel or accommodations provider that files security under subsection (b)(2) or (3) of this section, the county at any time may: (1) apply the cash to the hotel rental tax due; or (2) sell the security and apply the proceeds of the sale to the hotel rental tax due. §20-431. IN EFFECT (a) In this part the following words have the meanings indicated. (b) "Hotel" has the meaning stated in § 20-401 of this subtitle. (c) "Hotel rental tax" means the tax on a transient charge. (d) (1) "Transient charge" means a hotel charge for sleeping accommodations for a period not exceeding 4 consecutive months. (2) "Transient charge" does not include any hotel charge for: (i) services; or (ii) accommodations other than sleeping accommodations. §20-431. ** 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) "Hotel" has the meaning stated in § 20-401 of this subtitle. (g) "Hotel rental tax" has the meaning stated in § 20-401 of this subtitle. (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. §20-432. IN EFFECT (a) Except as provided in subsections (b) and (c) of this section, a municipality may impose, by ordinance or resolution, a hotel rental tax. (b) (1) In this subsection, "hotel rental tax revenue sharing arrangement" includes: (i) a requirement under §§ 20-415 through 20-422 of this subtitle that a county distribute revenue from a county hotel rental tax to a municipality; or (ii) any other hotel rental tax revenue sharing requirement, agreement, or arrangement between a county and a municipality. (2) A municipality in a county that has a hotel rental tax revenue sharing arrangement between the municipality and the county may not impose a hotel rental tax under this part. (c) A municipality may not impose a hotel rental tax if the municipality is located in a county that: (1) distributes at least 50% of total county hotel rental tax revenues to promote tourism in the county; or (2) does not impose a tax on a transient charge paid to a hotel. §20-432. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Except as provided in subsections (b), (c), and (d) of this section, a municipality may impose, by ordinance or resolution, a hotel rental tax. (b) (1) In this subsection, "hotel rental tax revenue sharing arrangement" includes: (i) a requirement under §§ 20-415 through 20-422 of this subtitle that a county distribute revenue from a county hotel rental tax to a municipality; or (ii) any other hotel rental tax revenue sharing requirement, agreement, or arrangement between a county and a municipality. (2) A municipality in a county that has a hotel rental tax revenue sharing arrangement between the municipality and the county may not impose a hotel rental tax under this part. (c) A municipality may not impose a hotel rental tax if the municipality is located in a county that: (1) distributes at least 50% of total county hotel rental tax revenues to promote tourism in the county; or (2) does not impose a tax on the taxable price paid to a hotel or an accommodations provider. (d) A municipality may not: (1) impose a tax on the rental of an accommodation, including a short-term rental, except as authorized under this section; or (2) impose a higher tax rate on short-term rental units than on other accommodations. §20-433. IN EFFECT (a) Subject to subsection (b) of this section, a municipality shall set the rate of the hotel rental tax. (b) The hotel rental tax for a municipality may not exceed 2%. §20-433. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Subject to subsection (b) of this section, a municipality shall set the rate of the hotel rental tax. (b) The hotel rental tax for a municipality may not exceed 2%. (c) If a municipality modifies a hotel rental tax rate under this section, the municipality shall: (1) modify the rate effective on July 1 of the year that the municipality 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. §20-434. IN EFFECT A municipality that imposes a hotel rental tax may: (1) provide for the administration and collection of the tax; (2) provide for additional exemptions from the tax; and (3) impose penalties for failure to collect, report, or pay the tax. §20-434. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 ** (a) Except as provided in subsection (b) of this section, a municipality that imposes a hotel rental tax may: (1) provide for the administration and collection of the tax; and (2) impose penalties for failure to collect, report, or pay the tax. (b) The Comptroller shall: (1) collect the municipal hotel rental tax from accommodations intermediaries in the same manner as the county hotel rental tax under this subtitle; and (2) distribute to a municipality, before the last day of the next month, the hotel tax revenue that is collected on behalf of the municipality from an accommodations intermediary during the preceding month. (c) To defray the cost of collecting and distributing the hotel rental tax under this part, the Comptroller may distribute to an administrative cost account an amount not to exceed 1.5% of the hotel rental tax revenue collected each month on behalf of a municipality from an accommodations intermediary. (d) (1) Subject to subsection (e) of this section, Title 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 a municipal 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. (e) Beginning January 1, 2028, Title 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 municipality and an accommodations intermediary. (f) 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 returns required under this subtitle. (g) An accommodations provider is liable for hotel rental taxes on any booking transaction not facilitated by an accommodations intermediary.
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