(a) Definitions. In this section, the following words have the meanings indicated.
(1) "Additional rent" means the rent paid by an occupant to a remarketer that is in excess of the net rent.
(2) "Collecting authority" means the County Controller except as provided in subsection (k).
(3) "Net rent" means the rent received by an owner or operator from a remarketer.
(4) "Occupant" means a person who uses or occupies a short-term rental.
(5) "Owner or operator" means a person who possesses or has an ownership interest in a short-term rental or is engaged in the business of operating short-term rentals.
(6) "Remarketer" means a person, other than the owner or operator of a short-term rental, who has the right, access, ability, or authority, through an internet transaction or any other means, to offer, reserve, book, arrange for, remarket, distribute, broker, or resell short-term rentals subject to the tax levied under this section, and the term includes a hosting platform. For purposes of this definition, "hosting platform" means an internet-based entity that, in exchange for rent, facilitates reservations and booking transactions of short-term residential rentals.
(7) (i) "Rent" means the consideration paid for the use or occupancy of a short- term rental in the County.
(ii) "Rent" includes both the "net rent" and the "additional rent" when the use or occupancy of a short-term rental is reserved, booked, brokered, or otherwise arranged for by a remarketer and the full amount of the rent is not paid by the occupant directly to the owner or operator.
(iii) "Rent" includes charges for services and booking fees that are a condition of use or occupancy and any amount for which credit is allowed by the owner or operator or remarketer to the occupant.
(iv) "Rent" does not include charges for optional services provided by the owner or operator of a short-term rental to the occupant that are in addition to the charge for use or occupancy and that are set forth separately on the bill presented to the occupant.
(8) "Short-term rental" means a facility that offers sleeping accommodations to the transient public for rent, including a hotel, motel, inn, bed and breakfast home, bed and breakfast inn, rooming house, as defined in § 18-1-101 of this Code, and short-term residential rentals. For purposes of this definition, "short-term residential rental" means the use or occupancy, facilitated by a hosting platform in exchange for rent, of all or part of a dwelling unit to provide accommodations to transient guests for no more than 120 consecutive days in a calendar year.
(b) Levy and amount of tax. There is an occupancy tax levied on the rent paid for the use of a short-term rental in the County. The rate of the tax is 8% of the rent. The occupancy tax levied under this section shall be considered the hotel tax referred to in § 20-603 of the Local Government Article of the State Code.
(c) Calculation and collection; no remarketer. If the full amount of the rent is paid by the occupant directly to the owner or operator of a short-term rental, the owner or operator shall collect the tax from the occupant and remit the tax to the collecting authority as provided in subsection (g).
(d) Calculation and collection; remarketer. If the use or occupancy of a short-term rental is reserved, booked, or otherwise arranged for by a remarketer and the full amount of the rent is not paid by the occupant directly to the owner or operator, the remarketer shall:
(1) for a short-term rental other than a short-term residential rental, collect the tax from the occupant based on the net rent and remit the tax to the owner or operator who shall remit it to the collecting authority as provided in subsection (g);
(2) collect the tax from the occupant based on the additional rent and remit the tax to the collecting authority as provided in subsection (g); and
(3) for a short-term residential rental, collect the tax from the occupant based on the net rent and remit the tax to the collecting authority as provided in subsection (g), but the host shall remit the tax to the collecting authority if the remarketer fails to do so.
(e) Exemptions. The tax does not apply to the rent paid for the use or occupancy of a short- term rental that continues for 120 or more consecutive days, provided that this exemption does not apply to a remarketer that offers, reserves, books, arranges for, remarkets, distributes, brokers, or resells a short-term rental for use or occupancy by others.
(f) Registration. An owner or operator or remarketer that offers, reserves, books, arranges for, remarkets, distributes, brokers, or resells short-term rentals subject to the tax levied under this section shall register with the collecting authority on the form prescribed by the collecting authority.
(g) Remittance and reports. The tax collected by an owner or operator or remarketer shall be remitted to the collecting authority no later than the 25th day of each month. Each month, regardless of whether the tax levied under this section is collected, an owner or operator or remarketer shall file with the collecting authority a fully completed return on forms prescribed by the collecting authority that sets forth the amount of taxes collected during the preceding period and such other information as the collecting authority may require. At the discretion of the Controller, a short-term residential rental owner or operator may be allowed to submit a return on a quarterly basis.
(h) Failure to remit or collect tax; failure to register.
(1) An owner or operator or remarketer that fails to collect, remit, or file a fully completed return for the tax levied by this section within the time prescribed shall be assessed the amount of tax due, interest at the rate of 0.5% for each month or fraction of a month, and a penalty of 10% of the tax due. The interest and penalty shall be collected as part of the tax.
(2) An owner or operator or remarketer that fails to register as required by subsection (f) shall be subject to a civil penalty of $1,000 in addition to any other amount owed under this subsection.
(i) Refunds. If a taxpayer has erroneously, illegally, or unconstitutionally paid the tax levied by this section, the collecting authority shall refund the tax if the refund is applied for in writing within three years after payment of the tax, and if there is good and sufficient grounds for the refund. The application shall be in the form approved by the collecting authority, signed by both the taxpayer and the proper officer of the owner or operator or remarketer, and submitted to the collecting authority.
(j) Sale or transfer of short-term rental. Not less than 10 days before taking possession or control of a short-term rental that is subject to the tax levied by this section, the purchaser, transferee, or assignee shall notify the collecting authority by certified mail of the sale, transfer, conveyance, or assignment. The notice shall set forth the name and mailing address of the purchaser, transferee, or assignee, and the anticipated date of taking possession or control. If notice to the collecting authority is not provided or if the collecting authority informs the purchaser, transferee, or assignee that a possible claim for taxes exists, the sums of money, property, or choses in action, or other consideration in which the purchaser, transferee, or assignee has an interest are subject to a first priority, right, and lien to the County, or the Mayor and Aldermen of the City of Annapolis, as appropriate, for the tax. The purchaser, transferee, or assignee is liable to the extent of the amount of the claim for unpaid taxes due under this section.
(k) Collecting authority. Except as otherwise provided by an agreement executed in accordance with this subsection, the collecting authority for the tax levied by this section is the County Controller. For the tax levied on the occupancy of short-term rentals located in the City of Annapolis, the County may enter into an agreement with the Mayor and Aldermen of the City of Annapolis delegating to the City of Annapolis the authority to act as collecting authority.
(Bill No. 69-11; Bill No. 88-19; Bill No. 38-23)