AGENDA ITEM #4A
March 15,2016
Introduction
MEMORANDUM
TO: .
FROM:
SUBJECT:
County Council
Jeff Zyontz, Senior Legislative
AnalJ
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.. '
Introduction:
Expedited Bill 6-16,
Taxation - Room Rental and Transient Tax - Definitions
Expedited Bill 6-16, Taxation Room Rental and Transient Tax - Definitions, is scheduled
to be introduced on March 15,2016. The Lead Sponsor is the Council President at the request of
the County Executive. A public hearing is tentatively scheduled for AprilS, 2016 at 1:30 p.m.
Bill 6-16 would clarify the definition of broker to include entities that facilitate or arrange
payment of room rental for sleeping accommodations; and clarify that service fees or broker fees
charged by brokers or other entities for sleeping accommodations are within the definition ofroom
rental for purposes of calculation ofthe
tax.
The Bill would also make editorial changes to locate definitions in alphabetical order and
conform the expression of the definition to code standards.
This packet contains:
Expedited Bill 6-16
Legislative Request Report
F:\LAw\BILLS\1606 Room Rental And Transient Tax\lntro Memo.Docx
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Expedited Bill No. -::----:::6=--1=6'--=""_-:---:
Concerning: Taxation - Room Rental and
Transient Tax - Definitions
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Revised: March 2, 2016 Draft No.
Introduced:
March 15, 2016
Expires:
September 15,2017
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _----:-:_ _ _ _ _ __
Sunset Date:
-,N~o::.l.n!.l:!e
_ _ _ _ __
Ch. _ _ Laws of Mont. Co. _ __
I
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the Request of the County Executive
AN EXPEDITED ACT
to:
(1)
(2)
(3)
clarify the definition of broker to include entities that facilitate or arrange payment
of room rental for sleeping accommodations;
clarify that service fees or broker fees charged by brokers or other entities for
sleeping accommodations are within the definition of room rental for purposes of
calculation ofthe tax; and
generally amend the room rental and transient tax.
By amending
Montgomery County Code
Chapter 52, Taxation
Section 52-16
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
amendment.
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by
Existing law unaffected by bill
The County Council for Montgomery County, Maryland approves thefollowing Act.'
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ExPEDITED BILL
No. 6-16
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Sec. 1. Section 52-16 is amended as follows:
52-16. Room rental and transient tax
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*
(b)
following meanings:
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*
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The following words and phrases, when used in this Section, have the
[Transient: An individual who, for any period of 30 or fewer consecutive
days, actually occupies a sleeping accommodation.]
Broker[:
A] means
~
person, other than the owner or operator of a hotel
or motel, that receives, facilitates or arranges payment, directly,
indirectly, or through an online platform, for hotel or motel
accommodations from a transient who is subject to the tax under
subsection (a).
Director
means the Director of Finance or the Director's designee.
Hotel or motel
means[:
(l)
Any] any hotel, inn, hostelry, tourist home or
house, motel, apartment hotel, rooming house, dwelling unit or other
lodging place that offers for compensation sleeping accommodations in
the County. [(2)] A hotel or motel does not include:
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ill
[(A)] a hospital, medical clinic, nursing home, rest home,
convalescent home, assisted living facility, or home for elderly
individuals; or
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ill
[(B)] a facility owned or leased by an organization that is exempt
from taxation under section 501(c)(3) of the Internal Revenue
Code if the primary use of the facility is other than housing
overnight guests.
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Hotelkeeper[:
A] means!! person that:
(1) owns or operates a hotel or motel; or
(2)
acts as a broker.
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EXPEDITED Bill
No. 6-16
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Room rental[:
The] means the total charge required to be paid by a
transient for a sleeping accommodation. Room rental includes any
service fee, broker's fee, or other charge or fee required to be paid
Qy
the
transient regardless of what the charge is called or how the charge is
designated.
Room rental does not include any optional charge for
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services in addition to the charge for use of sleeping spacej. such as Wi­
Fi access, food, beverage, movie rental, or fitness center access. The
portion ofthe total charge, ifany, that represents
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charge other than room
rental must be separately billed.
Transient
means an individual who, for any period of 30 or fewer
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consecutive days, actually occupies
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sleeping accommodation.
[Director: Director of Finance or the Director's designee.]
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*
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Sec. 2. Expedited Effective Date:
The Council declares that this legislation is
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necessary for the immediate protection ofthe public interest. This Act takes effect on
the date on which it becomes law.
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Approved:
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Nancy Floreen, President, County Council
Date
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Approved:
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Isiah Leggett, County Executive
Date
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LEGISLATIVE REQUEST REPORT
Expedited Bill 6-16
Room Rental and Transient Tax
-
Amendments
Taxation
DESCRIPTION:
This Bill would amend County law by clarifying that portion of the room
rental charge that is subject to the County's Room Rental and Transient Tax.
With the expansion in the number of brokers and the use of different terms to
describe non-discretionary charges to the transient it is necessary to further
clarify the calculation of the transient tax.
To facilitate the efficient and orderly assessment and collection ofthe Room
Rental and Transient Tax.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
Department of Finance
FISCAL IMPACT:
To be requested.
ECONOMIC
IMPACT:
EVALUATION:
To be requested.
Subject to the general oversight of the County Executive and the County
Council.
Unknown.
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Michael 1. Coveyou, Chief, Division of Treasury, Department of Finance
None.
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
None.
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