MD HB1278

Expands the definition of "hotel" in Garrett County to include transient vacation rental units (single buildings with up to 8 bedrooms and maximum occupancy of 20 individuals)

Requires short-term rental platforms (like Airbnb, VRBO) and property managers who facilitate rentals and collect payments to collect and remit hotel rental taxes on behalf of property owners

Subjects short-term rental platforms and managers to the same penalties as hotels for failure to comply with tax collection requirements

Increases the interest rate on unpaid hotel rental taxes in Garrett County from 0.5% to 1% per month, aligning it with Cecil, Dorchester, Talbot, Washington, and Wicomico counties

Takes effect July 1, 2025