Senate Passes SB 190 to ensure tax parity with online travel agencies
“The travel and tourism industry, of which lodging is a significant component, is a key driver of the economy in Maryland. In 2014, Maryland hotels, motels, resorts, and lodges generated $1.2 billion in tax revenue for local and state governments. More importantly, the lodging industry supports approximately 24,000 jobs and is responsible for $787 million in annual wages. Every new job and every new hotel room is an investment in the people of Maryland.
“SB 190 ensures every company is paying what it already owes, closing a loophole that has been exploited by out-of-state companies whose business model includes non-remittance of certain taxes collected from consumers. The Senate has taken an important step in clarifying the state’s laws, and there is no reason to wait on the courts to act in protecting Maryland’s taxpayers.
“The future of Maryland’s hotel industry is very promising. To continue this positive momentum, however, it is important that the lodging industry be able to compete on a level playing field. We urge the House to move swiftly to pass this bill, which will help fund essential public services and do so without a tax increase,” said Katherine Lugar, president and CEO of the American Hotel and Lodging Association.
Serving the hospitality industry for more than a century, the American Hotel & Lodging Association (AH&LA) is the sole national association representing all segments of the 1.8 million-employee U.S. lodging industry, including hotel owners, REITs, chains, franchisees, management companies, independent properties, state hotel associations, and industry suppliers. Headquartered in Washington, D.C., AH&LA provides focused advocacy, communications support, and educational resources for an industry generating $155.5 billion in annual sales from 4.9 million guestrooms.