Legislation Details

Reference No. CB-004-2015    Draft No.
Type: Council Bill Status: Enacted
Meeting Body County Council
Meeting Date 3/31/2015
Introduced Date 3/10/2015 Public Hearing Date 3/31/2015 - 10:00 AM
Effective date: 6/4/2015    
Title: AN ACT CONCERNING HOTEL AND MOTEL TAX for the purpose of clarifying that the full amount of the consideration paid to a room remarketer through an internet transaction is subject to the County's hotel tax.
Proposers/Sponsors: Mary A. Lehman, Dannielle M. Glaros, Karen R. Toles, Deni L. Taveras, Todd M. Turner
Code sections: 10-219.01 - , 10-221 -
Attachments: 1. B2015004 DR 2, 2. CB-4-2015 AIS, 3. CB-04-2015 Report
Contact: Colette R. Gresham, Legislative Officer
Title
AN ACT CONCERNING HOTEL AND MOTEL TAX for the purpose of clarifying that the full amount of the consideration paid to a room remarketer through an internet transaction is subject to the County's hotel tax.
Background
Room remarketers, or online hotel booking companies, are currently only paying the hotel tax on rooms that they reserve directly from a hotel or motel in Prince George's County.  If the room is re-rented by the room remarketer to a person at a higher rate, the hotel tax is not being collected on that higher rate.  Many counties around the country have had lawsuits with these online hotel booking companies, while others have passed legislation to close this loophole.  The proposed legislation would amend the County's hotel tax law to close the loophole and cover the final cost an occupant pays to a room remarketer as opposed to just the initial cost paid by the room remarketer to rent the room.