On March 28, 2025, the Maryland Legislature introduced Senate Bill 979, a legislative proposal aimed at regulating the tax obligations of accommodations intermediaries, such as online booking platforms. The bill seeks to clarify the responsibilities of these intermediaries in collecting and remitting taxes on room rentals for transient accommodations, particularly in Howard County.

One of the key provisions of Senate Bill 979 is the stipulation that the Comptroller of Maryland cannot conduct direct examinations or audits of individual accommodations providers for transactions facilitated by intermediaries. Instead, any audits or investigations must focus on the intermediaries themselves, ensuring that they comply with tax collection obligations. This provision aims to streamline the auditing process and protect the privacy of individual accommodations providers.

The bill also allows the Comptroller to request specific information from accommodations intermediaries during audits, but only to the extent necessary for enforcing tax obligations. This includes personally identifiable information of accommodations providers, physical addresses of accommodations, and amounts transmitted from intermediaries to providers. Importantly, any information provided under this section is classified as confidential tax information.

Senate Bill 979 has sparked discussions among lawmakers and stakeholders in the hospitality industry. Proponents argue that the bill will simplify tax compliance for intermediaries and enhance the efficiency of tax collection, ultimately benefiting local governments. However, some critics express concerns about the potential for reduced oversight of individual accommodations providers, fearing it may lead to tax evasion or unfair competition.

The economic implications of this bill are significant, particularly for Howard County, where the legislation allows for the imposition of a sales or use tax on room rentals, capped at seven percent. This could generate additional revenue for the county, which may be used to fund local services and infrastructure.

As the bill progresses through the legislative process, its impact on the hospitality sector and local tax revenues will be closely monitored. If passed, Senate Bill 979 could reshape the landscape of accommodations taxation in Maryland, balancing the needs of intermediaries with the fiscal responsibilities of local governments.