# Local Government (GLG)

## Title 20. Taxes and Development Impact Fees

### Subtitle 4. Hotel Rental Taxes

#### Section 20-415

(a) Except as otherwise provided in this part, a code county, Cecil County, Garrett County, or St. Mary's County shall distribute the hotel rental tax revenue as follows:

  (1) a reasonable sum for hotel rental tax administrative costs to the general fund of the county;

  (2) after the distribution in item (1) of this subsection, the revenue attributable to a hotel located in a municipality to the municipality; and

  (3) the remaining balance to the general fund of the county.

(b) Cecil County may not deduct more than 5% of the revenue for administrative costs under subsection (a)(1) of this section.

(c)

  (1) From the part of the balance under subsection (a)(3) of this section that is attributable to a tax rate of 6% or less, Garrett County shall designate a portion for the promotion of the county.

  (2) If Garrett County imposes a tax rate greater than 6%, the part of the balance under subsection (a)(3) of this section that is attributable to the rate greater than 6% shall be distributed to the general fund of the county.

(d) If a Western Maryland code county imposes a tax rate greater than 5%, the revenue attributable to the rate greater than 5% and attributable to a hotel located in a municipality shall be distributed to the general fund of the county.

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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)