Senate Bill 979, introduced in the Maryland Legislature on March 28, 2025, aims to modernize the taxation framework for accommodations intermediaries, such as online platforms that facilitate room rentals. This bill seeks to address the growing trend of short-term rentals and ensure that these businesses contribute fairly to local tax revenues.

The key provision of Senate Bill 979 allows Prince George’s County to impose a tax of up to 10% on all gross amounts paid by transient guests for room rentals. This tax will apply to the total charge for the room rental, including any fees charged by accommodations intermediaries, but excluding taxes. The bill mandates that the Maryland Comptroller will collect this tax from these intermediaries, streamlining the process and ensuring compliance.

Supporters of the bill argue that it levels the playing field between traditional hotels and online rental platforms, which have often operated without the same tax obligations. This could lead to increased revenue for local governments, which can be used to fund community services and infrastructure. Proponents also highlight the importance of regulating the short-term rental market to maintain neighborhood integrity and safety.

However, the bill has faced opposition from some accommodations intermediaries who argue that the additional tax burden could lead to higher costs for consumers and potentially stifle the growth of the short-term rental market. Critics also express concerns about the administrative complexities that may arise from the new tax collection process.

The implications of Senate Bill 979 extend beyond just tax revenue. If passed, it could reshape the landscape of the hospitality industry in Prince George’s County, influencing how residents and visitors engage with local accommodations. Experts suggest that the bill could serve as a model for other jurisdictions grappling with similar issues related to short-term rentals.

As the legislative process unfolds, stakeholders from various sectors will be closely monitoring the discussions surrounding Senate Bill 979, which could have lasting effects on both the local economy and community dynamics in Maryland.