Committee holds short‑term‑rental tax and regulation bill for more review

The committee considered House Bill 87 on Jan. 28, which would expand state regulation of short‑term rentals and “home amenities,” add them to the statutory definition of hotels for tax purposes and subject them to the county hotel tax, and apply additional health and safety standards to such units.

Ron Young of Evans and Associates summarized the bill’s provisions: it would subject short‑term rental platforms to the hotel tax and require compliance with fire‑safety and evacuation standards; local jurisdictions could define and regulate high‑intensity rental activity and set limits in areas with housing shortages. Young cited a statewide estimate of about 8,720 Airbnb/VRBO units and an approximate county exposure of up to 1,400 units based on proportional allocation. The comptroller’s implementation cost was estimated at roughly $1,000,000; state hotel‑tax revenue currently totals about $136,000,000 across counties, and Prince George’s County currently collects about $12.1 million at a 7% rate.

Committee concerns: Council members asked whether the tax would fall selectively on large operators versus small hosts; members expressed concern about a blanket approach that would affect homeowners who rent a single room or a second property as part of household income. County staff said MACo (Maryland Association of Counties) had not yet taken a position and the county executive’s office took no position pending data review.

Action: Council Member Arrieta moved to hold the bill until the committee’s next meeting; Vice Chair Fisher seconded. The clerk recorded an unanimous “aye” and the motion to hold carried 4–0.

Discussion vs. decision: the committee’s vote paused action pending further data and consideration of possible carve‑outs or thresholds for property counts; no county policy change was enacted.

Evidence: staff presentation, committee Q&A and clerk’s roll call appear on the Jan. 28 transcript.