§ 20-603

Maryland § 20-603

• Jurisdiction: Maryland
• Article glg: Local Government
• Title: 20

Text

§20–603. IN EFFECT

(a) By ordinance, Anne Arundel County may impose a sales or use tax on:

(1) fuel and utilities used by commercial and industrial businesses;

(2) residential, commercial, and industrial telephone service; and

(3) space rentals other than space rentals for the docking or storing of boats.

(b) (1) Any revenues collected under subsection (a)(1) and (2) of this section in the City of Annapolis shall be allocated and distributed in equal amounts to the City of Annapolis and to Anne Arundel County.

(2) Except as otherwise provided in this subsection, any revenue generated in the City of Annapolis from the tax on space rentals shall be collected and retained by the City of Annapolis.

(3) Except as provided in paragraph (6) of this subsection, any revenue generated in the City of Annapolis from the hotel tax shall be collected by Anne Arundel County.

(4) From any revenue generated in the City of Annapolis from the hotel tax, Anne Arundel County shall distribute:

(i) 3% to a special fund to be used only to provide funds to the Annapolis Art in Public Places Commission;

(ii) 3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.;

(iii) 17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.; and

(iv) 3% to the Affordable Housing Trust Fund established under § 20.30.070 of the Code of the City of Annapolis to be used only for housing assistance payments.

(5) After making the distributions required under paragraph (4) of this subsection, the balance of the revenue generated in the City of Annapolis from the hotel tax shall be distributed to the City of Annapolis.

(6) (i) Anne Arundel County may authorize the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax.

(ii) If Anne Arundel County authorizes the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax, the City of Annapolis shall distribute a percentage of the revenue in accordance with paragraph (4) of this subsection and retain the balance of the revenue generated.

(c) (1) From the county’s share of revenue from the hotel tax, Anne Arundel County shall distribute:

(i) 3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.; and

(ii) 17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.

(2) After making the distributions required under paragraph (1) of this subsection, the balance of the county’s share of revenue from the hotel tax shall be credited to the general fund of the county.

(d) (1) On or before November 1 each year, the Annapolis Art in Public Places Commission shall report on its use of hotel tax revenue during the preceding fiscal year to:

(i) the Mayor and City Council of the City of Annapolis; and

(ii) in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing the City of Annapolis.

(2) If the Annapolis Art in Public Places Commission fails to submit the report required under paragraph (1) of this subsection, the City of Annapolis may withhold from appropriation special funds dedicated to the Commission under this section.

(e) (1) On or before November 1 each year, the Arts Council of Anne Arundel County, Inc. and Visit Annapolis and Anne Arundel County, Inc. shall report on their use of hotel tax revenue during the preceding fiscal year to:

(i) the Anne Arundel County Executive;

(ii) the Mayor and City Council of the City of Annapolis; and

(iii) in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing Anne Arundel County.

(2) The County Auditor of Anne Arundel County:

(i) may conduct an audit of the financial records of the Arts Council of Anne Arundel County, Inc. or Visit Annapolis and Anne Arundel County, Inc.; and

(ii) shall report any audit findings under item (i) of this paragraph to the governing body of Anne Arundel County.

(3) (i) The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to the Arts Council of Anne Arundel County under this section if the Council fails to:

1. submit the report required under paragraph (1) of this subsection; or

2. correct any audit findings identified under paragraph (2) of this subsection.

(ii) The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to Visit Annapolis and Anne Arundel County, Inc. under this section if Visit Annapolis and Anne Arundel County, Inc. fails to:

1. submit the report required under paragraph (1) of this subsection; or

2. correct any audit findings identified under paragraph (2) of this subsection.

(f) The hotel tax authorized under this section does not apply to the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that:

(1) is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization;

(2) provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and

(3) does not offer lodging services to the general public.

§20–603. ** TAKES EFFECT JULY 1, 2027 PER CHAPTER 638 OF 2025 **

(a) By ordinance, Anne Arundel County may impose a sales or use tax on:

(1) fuel and utilities used by commercial and industrial businesses;

(2) residential, commercial, and industrial telephone service; and

(3) space rentals other than space rentals for the docking or storing of boats.

(b) (1) Any revenues collected under subsection (a)(1) and (2) of this section in the City of Annapolis shall be allocated and distributed in equal amounts to the City of Annapolis and to Anne Arundel County.

(2) Except as otherwise provided in this subsection, any revenue generated in the City of Annapolis from the tax on space rentals shall be collected and retained by the City of Annapolis.

(3) Except as provided in paragraphs (6) and (7) of this subsection, any revenue generated in the City of Annapolis from the hotel tax shall be collected by Anne Arundel County.

(4) From any revenue generated in the City of Annapolis from the hotel tax, Anne Arundel County shall distribute:

(i) 3% to a special fund to be used only to provide funds to the Annapolis Art in Public Places Commission;

(ii) 3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.;

(iii) 17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.; and

(iv) 3% to the Affordable Housing Trust Fund established under § 20.30.070 of the Code of the City of Annapolis to be used only for housing assistance payments.

(5) After making the distributions required under paragraph (4) of this subsection, the balance of the revenue generated in the City of Annapolis from the hotel tax shall be distributed to the City of Annapolis.

(6) (i) Anne Arundel County may authorize the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax.

(ii) If Anne Arundel County authorizes the City of Annapolis to collect revenue generated in the City of Annapolis from the hotel tax, the City of Annapolis shall distribute a percentage of the revenue in accordance with paragraph (4) of this subsection and retain the balance of the revenue generated.

(7) The Comptroller shall:

(i) collect the hotel tax imposed under subsection (a)(3) of this section from accommodations intermediaries in the manner prescribed in Subtitle 4 of this title and Title 11 of the Tax – General Article; and

(ii) distribute before the last day of the next month the hotel tax revenue collected from accommodations intermediaries during the preceding month in the manner prescribed in this subsection.

(8) To defray the cost of collecting and distributing the hotel tax under this section, the Comptroller may distribute to an administrative cost account an amount not to exceed 1.5% of the hotel tax revenue collected each month on behalf of Anne Arundel County from an accommodations intermediary.

(c) (1) From the county’s share of revenue from the hotel tax, Anne Arundel County shall distribute:

(i) 3% to a special fund to be used only to provide funds to the Arts Council of Anne Arundel County, Inc.; and

(ii) 17% to a special fund to be used only to provide funds to Visit Annapolis and Anne Arundel County, Inc.

(2) After making the distributions required under paragraph (1) of this subsection, the balance of the county’s share of revenue from the hotel tax shall be credited to the general fund of the county.

(d) (1) On or before November 1 each year, the Annapolis Art in Public Places Commission shall report on its use of hotel tax revenue during the preceding fiscal year to:

(i) the Mayor and City Council of the City of Annapolis; and

(ii) in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing the City of Annapolis.

(2) If the Annapolis Art in Public Places Commission fails to submit the report required under paragraph (1) of this subsection, the City of Annapolis may withhold from appropriation special funds dedicated to the Commission under this section.

(e) (1) On or before November 1 each year, the Arts Council of Anne Arundel County, Inc. and Visit Annapolis and Anne Arundel County, Inc. shall report on their use of hotel tax revenue during the preceding fiscal year to:

(i) the Anne Arundel County Executive;

(ii) the Mayor and City Council of the City of Annapolis; and

(iii) in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee, the House Committee on Ways and Means, and the members of the General Assembly representing Anne Arundel County.

(2) The County Auditor of Anne Arundel County:

(i) may conduct an audit of the financial records of the Arts Council of Anne Arundel County, Inc. or Visit Annapolis and Anne Arundel County, Inc.; and

(ii) shall report any audit findings under item (i) of this paragraph to the governing body of Anne Arundel County.

(3) (i) The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to the Arts Council of Anne Arundel County under this section if the Council fails to:

1. submit the report required under paragraph (1) of this subsection; or

2. correct any audit findings identified under paragraph (2) of this subsection.

(ii) The City of Annapolis or Anne Arundel County may withhold from appropriation special funds dedicated to Visit Annapolis and Anne Arundel County, Inc. under this section if Visit Annapolis and Anne Arundel County, Inc. fails to:

1. submit the report required under paragraph (1) of this subsection; or

2. correct any audit findings identified under paragraph (2) of this subsection.

(f) The hotel tax authorized under this section does not apply to the sale of a right to occupy a room or lodgings as a transient guest at a dormitory or other lodging facility that:

(1) is operated solely in support of the headquarters, a training facility, a conference facility, an awards facility, or the campus of a corporation or other organization;

(2) provides lodging solely for employees, contractors, vendors, and other invitees of the corporation that owns the dormitory or lodging facility; and

(3) does not offer lodging services to the general public.