Maryland's Senate Bill 979, introduced on March 28, 2025, aims to enhance local funding for tourism and affordable housing in Annapolis. The bill proposes a new hotel tax structure that allocates revenue to various community initiatives, reflecting a strategic approach to bolster both the local economy and housing assistance.

The key provisions of Senate Bill 979 include the establishment of a hotel tax that will generate funds specifically earmarked for the Annapolis and Anne Arundel County Conference and Visitors Bureau, as well as the Affordable Housing Trust Fund. The bill stipulates that 17% of the tax revenue will support tourism promotion, while 3% will be directed towards housing assistance payments, addressing two pressing community needs simultaneously.

Notably, the bill allows Anne Arundel County to authorize the City of Annapolis to collect this hotel tax, ensuring that the city retains a significant portion of the revenue generated. This local control is expected to enhance the city’s ability to respond to its unique economic and social challenges.

Debate surrounding Senate Bill 979 has focused on the balance between tourism funding and housing needs. Proponents argue that the dual allocation of funds will stimulate economic growth while providing essential support for residents facing housing insecurity. Critics, however, express concerns about the potential impact on local businesses and the adequacy of the funds for addressing the housing crisis.

The implications of this bill are significant. By linking tourism revenue to affordable housing, Maryland legislators are attempting to create a sustainable model that addresses both economic development and social welfare. Experts suggest that if successful, this initiative could serve as a blueprint for other municipalities facing similar challenges.

As the bill progresses through the legislative process, its outcomes will be closely monitored by stakeholders in both the tourism and housing sectors. The potential for increased funding could lead to improved services and support for residents, making Senate Bill 979 a pivotal piece of legislation for Annapolis and its future.