§ 20-432

Md. Code, Local Government § 20-432, under Article — Local Government.

Md. Code, Local Government § 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.

--- PUBLISHED VARIANT ---

[** 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.