Caroline County, MD Hotel Rental Tax

[1]

This legislative bill called for creating new Article X; however Article X was not available. Therefore, in the codification of this law, Article XI was designated for Hotel Rental Tax.

The board shall impose a tax on a transient charge paid to a hotel located in Caroline County and that tax rate shall be 5% of the transient charge.

A person shall pay the hotel rental tax to the hotel when the person pays the transient charge.

(1)

A hotel shall:

(a)

Give the 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

(b)

Collect the hotel rental tax from the person who pays the transient charge.

(2)

A hotel holds hotel rental tax collected in trust for Caroline County until the hotel pays the tax to Caroline County as required hereunder.

(3)

A hotel shall complete, sign and file a hotel rental tax return with Caroline County on or before the tenth day of each month.

(4)

A hotel rental tax return shall be made on the form that Caroline County requires and shall contain the information the County requires, including the amount of:

(a)

Transient charges paid to the hotel during the prior calendar month; and

(b)

The hotel rental tax required to be collected during the prior calendar month.

(5)

A hotel shall pay to Caroline County the tax collected for a calendar month with the return that covers that month.

(6)

A hotel is allowed a discount of 1 1/2% of the gross amount of the hotel rental tax collected for administrative costs if, on or before the tenth day of each month, the hotel:

(a)

Files the hotel rental tax return; and

(b)

Pays the hotel rental tax.

(7)

If a hotel fails to pay the hotel rental tax as required under this Article, the hotel shall pay interest on the unpaid tax from the date on which the hotel is required to pay the tax to the date that the tax is paid. The interest rate for each month is 1/2%.

(8)

If a hotel fails to pay the hotel rental tax to Caroline County within one month after the payment is due, the hotel shall pay a tax penalty of 10% on the unpaid tax.

(9)

Caroline County may file a civil action to collect unpaid hotel rental tax; also, any unpaid hotel rental tax in Caroline County is a lien against the real and personal property of the person owing the tax and is collectible in the same manner as the property tax may be collected under the Tax-Property Article of the Annotated Code of Maryland.

(10)

The Comptroller of Maryland shall supply to the board information in aid of verification of liability for the hotel rental tax. The Comptroller of Maryland may make a reasonable charge for this assistance, which shall be paid by the board and treated as a part of the reasonable costs of collecting the tax.

(11)

Caroline County shall manage the hotel rental tax to provide for orderly, systematic and thorough administration of the hotel rental tax and may adopt regulations that are consistent with this Article and conform to the applicable provisions and regulations for the sales and use tax under Title 11 of the Tax-General Article of the Annotated Code of Maryland.

(12)

To cover the revenue that the County Comptroller collects under this Article, the board may increase the surety bond required for the Comptroller. The board shall treat any additional premium due to a surety bond increase allowed under this Article as a hotel rental tax administrative cost.

[Amended 5-8-2007 by Bill No. 2007-1; 10-9-2007 by Bill No. 2007-5]

(13)

The board, in order to protect the revenues to be generated by the hotel rental tax, may require a hotel collecting the tax to file with the board a surety bond issued by a surety company authorized to do business in the State of Maryland and approved by the State Insurance Commissioner as to solvency and responsibility, in such amount or amounts from time to time as the board may fix to secure the payment of the tax due which may become due from the hotel collecting the tax. If the board determines that the hotel is to file such a bond, the board shall give notice to the hotel to that effect specifying the amount of bond required; the bond shall be filed within five days after receiving the notice, unless within that period the hotel requests, in writing, a hearing before the board, at which hearing the necessity, propriety and amount of the bond shall be determined by the board. This determination is final and shall be complied with within 15 days after the hotel collecting the tax receives notice thereof.

(14)

In lieu of the bond required, securities approved by the board or cash in such amount as the board prescribes may be deposited, which shall be kept in the custody of the board. The board, at any time without notice to the depositor of the securities or cash, may apply them to any hotel rental tax due, and for that purpose the securities may be sold by the board at public or private sale, without notice to the depositor of the securities.