[Adopted 4-2-2024 by Bill No. 3-2024[1]]
[1]
Editor's Note: This bill also repealed former Art. III, Hotel Rental Tax, adopted 12-22-1992, as amended 9-7-2004 by Bill No. 2-2004.
A. 
The Board of County Commissioners may impose, by resolution, a tax on a transient charge paid to a short-term rental located in Kent County as authorized by and consistent with the provisions of the Annotated Code of Maryland, Local Government Article § 20-403.
B. 
As used in this article, the following words have the meaning indicated:
COLLECTING AUTHORITY
The County Chief Finance Officer.
COUNTY
Kent County, Maryland, or the County Commissioners of Kent County, Maryland.
OWNER or OPERATOR
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.
SHORT-TERM RENTAL
An establishment that offers sleeping accommodations for compensation as defined in the Annotated Code of Maryland, Local Government Article § 20-401, and § 152-16 of this Code.
(1) 
"Short-term rental" includes, but is not limited to:
(a) 
An apartment;
(b) 
A cottage;
(c) 
A hostelry;
(d) 
A hotel;
(e) 
An inn;
(f) 
A motel;
(g) 
A rooming house;
(h) 
A tourist home;
(i) 
A residential rental, including those facilitated by a hosting platform or booking service; or
(j) 
An outdoor retreat.
SHORT-TERM RENTAL TAX
A tax on a transient charge.
TRANSIENT CHARGE
A charge for sleeping accommodations for a period not exceeding four consecutive months but does not include any charge for services or accommodations other than sleeping accommodations.
The following procedures consistent with § 20-406 et seq. of the Local Government Article of the Annotated Code of Maryland shall be followed.
A. 
The short-term rental, owner, or operator shall give a person who is required to pay a transient charge a bill that identifies the transient charge as a separate item from any other charge and collect the short-term rental tax from the person who pays the transient charge.
B. 
A person shall pay the short-term rental tax to the short-term rental, owner, or operator when the person pays the transient charge.
C. 
The short-term rental tax shall be held in trust by the short-term rental, owner, or operator until remitted to the County as required by this article.
D. 
A short-term rental, owner, or operator shall complete, sign, and file a short-term rental tax report, on the form and in the manner the County requires, and remit the full tax due on or before the 21st day of each month for the preceding month.
E. 
The remitter of the short-term rental tax, for administrative costs, may retain 1.5% of the gross amount of short-term rental tax collected if, on or before the due date, the short-term rental:
(1) 
Files a completed short-term rental tax report; and
(2) 
Pays the short-term rental tax to the County.
F. 
If a short-term rental, owner, or operator fails to pay the short-term rental tax as required above, the short-term rental, owner, or operator shall pay 0.5% interest on the unpaid tax from the date which the tax was due until the date the tax is paid.
G. 
If a short-term rental, owner, or operator fails to pay the short-term rental tax within one month after the payment is due, the short-term rental, owner, or operator shall pay a tax penalty of 10% of the unpaid tax.
A. 
All revenue generated by the short-term rental tax shall be distributed by the 30th day of the calendar month as follows:
(1) 
For a short-term rental property located in a municipality:
(a) 
Ten percent to the general fund of the County for the administrative costs of collection of the tax; and
(b) 
Ninety percent to the municipality in which the short-term rental property is located.
(2) 
For a short-term rental property located outside of the corporate boundaries of a municipality: 100% to the general fund of the County.
B. 
The County Commissioners may adopt regulations consistent with Title 20 of the Local Government Article of the Annotated Code of Maryland, and Title 11 of the Tax-General Article of the Annotated Code of Maryland, to provide orderly, systematic, and thorough administration of the short-term rental tax.
C. 
Short-term rentals as defined above in § 152-16, shall be in compliance with all County and municipal regulations, licensing, and ordinances, where applicable, to include but not limited to memorandums of understanding, fee structures, adopted regulations, and land use ordinances.