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HB 1103

Local Government - Accommodations Intermediaries - Hotel Rental Tax Collection by Comptroller

2025 Regular Session Introduced by Vanessa Atterbeary

Maryland bill empowers Comptroller to collect hotel taxes from online booking platforms on behalf of local governments, addressing tax compliance gaps in short-term rentals.

Hearing 2/24 at 11:00 a.m.
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Bill Summary · HB 1103

Legislative bill overview

HB 1103 would authorize Maryland's Comptroller to collect hotel rental taxes from accommodation intermediaries (platforms like Airbnb and Vrbo) on behalf of local governments. Currently, these platforms operate in a regulatory gray area regarding tax collection responsibilities. The bill aims to streamline tax collection and ensure consistent revenue capture across the state's municipalities.

Why is this important

Short-term rental platforms have grown significantly, but tax compliance varies widely—many jurisdictions struggle to collect taxes owed on these bookings. This creates unfair competition with traditional hotels that collect taxes consistently and represents lost revenue for local governments that depend on hospitality taxes for services like tourism promotion and infrastructure. The bill addresses a major compliance gap in the modern sharing economy.

Potential points of contention

  • Platform compliance burden: Intermediaries may argue that requiring them to collect and remit taxes creates administrative complexity and costs, potentially leading to higher booking fees for consumers
  • Local government authority vs. state control: Some municipalities may oppose having the state Comptroller act as intermediary, preferring direct collection relationships that give them more control and faster revenue access
  • Competitive fairness: Traditional lodging industry will likely support this, but platforms may challenge whether it places unequal burdens on digital businesses compared to other collection mechanisms

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

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