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HB 570

Efficient Government Buildings and Savings Act.

2023-2024 Session Introduced by Vernetta Alston and 22 co-sponsors

Talbot County hotel tax penalties cut to 1 month after due date, with a 10% penalty; aligns with most counties; effective July 1, 2025.

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Bill Summary · HB 570

HB 570 — Efficient Government Buildings and Savings Act (Talbot County — Hotel Rental Tax penalty timing)

Note: Although multiple bills titled “HB 570” exist in other states and on other topics, this summary covers the Maryland/local-legislation version affecting Talbot County hotel rental tax (cross-file: SB 803).

Main purpose

Change the time window after which a penalty may be imposed on late payments of the county hotel rental tax in Talbot County — reducing the grace period from 120 days to 1 month — so Talbot’s rules match the standard used by most Maryland counties.

Key provisions

  • Amends Article — Local Government, §20‑426 (Annotated Code of Maryland).
  • Removes the special 120‑day allowance for Talbot County (which currently delays imposition of the tax penalty).
  • Establishes that a hotel that fails to pay the county hotel rental tax within 1 month after the payment is due must pay a penalty equal to 10% of the unpaid tax (same rule already in effect for most other counties).
  • Effective date: July 1, 2025.
  • Cross‑filed with SB 803 (Talbot County Senators).

Who is affected

  • Primary: Hotels and lodging operators located in Talbot County (penalty exposure begins earlier).
  • Local government: Talbot County government and municipalities that receive a share of hotel tax revenues.
  • State agencies & partners: County tourism board and the Maryland Department of Commerce (timelier gross receipts reporting).
  • Small businesses: Impact expected to be minimal overall, but individual hotels that pay late may face earlier penalties.

Fiscal and operational impact

  • State finances: No fiscal effect.
  • Local (Talbot County): Positive net effect expected — improved ability to collect hotel rental tax sooner, potential increase in tax penalty revenue, and improved cash flow and timeliness of distributions to municipalities. Talbot County estimated FY2025 hotel rental tax receipts of about $1.8 million (tax rate 4%), of which roughly $1.35 million was expected to be distributed to municipalities.
  • County expenditures: Not significantly affected; administrative burdens (monitoring, notices, compliance lists) are expected to decrease.
  • Small business effect: Minimal.

Context / current law

  • Under current Maryland law, most counties impose a 10% penalty if a hotel fails to pay within 1 month of due date. Talbot (and Wicomico) had a statutory 120‑day delay before a penalty could be assessed; this bill removes Talbot’s 120‑day exception (Wicomico remains unchanged).

Procedural status (selected)

  • Introduced / first read: January 23, 2025 (Talbot County Delegation).
  • Committee: Assigned to Ways and Means; Committee report: Favorable.
  • Read second: March 5, 2025; Third Reader: March 17, 2025.
  • Effective: July 1, 2025 (if enacted).

If you want, I can produce a one‑page checklist for county hotel operators describing compliance steps and calendar changes to avoid the earlier penalty.

Compiled from official sources — confirm details with the bill’s official record.

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