On February 24, Legislative Director Kevin Kinnally testified before the Ways and Means Committee to support HB 1103 – Local Government – Accommodations Intermediaries – Hotel Rental Tax Collection by Comptroller with amendments.
This bill aims to centralize short-term rental (STR) tax collection under the Comptroller, improving tax administration while ensuring STRs provide a fair and consistent local revenue source.
Counties rely on these funds to support tourism, economic development, and essential services. While centralizing collection offers efficiency, amendments are necessary to protect local enforcement authority, maintain compliance with zoning and safety regulations, and ensure transparency in tax remittances.
MACo supports the bill with amendments to require STR platforms to verify and report local licenses, ensure counties receive property-level tax remittance data, preserve independent audit authority to prevent underreporting and lost revenue, and guarantee that all STR operators, regardless of platform size, are subject to the same tax collection and remittance requirements to create a level playing field.
STRs, typically rented for under 30 days, have surged in popularity across Maryland, facilitated by platforms like Airbnb and VRBO. While these rentals provide economic opportunities, they also present new challenges for local governments tasked with enforcing zoning laws, public safety standards, and tax obligations
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A streamlined tax collection system should not come at the expense of necessary local authority or transparency. MACo urges amendments to protect regulatory authority, bolster compliance mechanisms, and ensure counties receive the data to properly administer tax laws and zoning regulations.
HB 1103’s cross-file, SB 979, was heard on March 5 in the Senate Budget and Taxation Committee. Kevin Kinnally testified in support of this bill with amendments.
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