Maryland Comptroller Brooke Lierman is examining short-term rentals statewide to ensure proper tax reporting and collection. The initiative focuses on platforms like Airbnb and Vrbo, following recent legislation that centralizes Maryland short-term rental taxes. Lierman’s office has hired a consultant to scrape publicly available data from these sites, comparing advertised earnings to reported income. This move aims to confirm that all operators pay their fair share, with revenues returning to local jurisdictions.
The General Assembly passed bills this year, including Senate Bill 979, requiring accommodations intermediaries to collect and remit hotel rental taxes directly to the comptroller instead of individual counties. House Bill 87 also addresses taxation, regulation and crimes related to short-term rentals and home amenity rentals, with a hearing held January 28. These laws, effective for 2025, streamline Maryland short-term rental taxes by imposing a 6 percent state sales tax on bookings of 88 nights or less, plus local lodging taxes varying by county.
Lierman discussed the efforts at the Maryland Association of Counties summer conference in Ocean City on August 16, 2025. “There are probably a couple cleanup things that we’d like to do this year that we’ll talk with the sponsors about, but we care very much about making sure that everybody pays their fair share, and then it gets back to you,” she told attendees. “So that will be our central driving force — to make sure that all the taxes are collected and that they are remitted to the appropriate place, and that we’re accounting for that along the way.”
The comptroller highlighted her office’s innovative approach to enforcement. “So, if I see that you have 10 Ocean City rentals that are rented at $500 a night, nine months of the year. And I don’t see that on your tax return, right?” Lierman said. She described the data scraping as potentially the first of its kind nationally, aimed at identifying discrepancies between platform listings and tax filings.
This push for compliance in Maryland short-term rental taxes comes amid growing concerns over unreported income. Platforms with at least 200 bookings or $100,000 in revenue must now collect and remit applicable hotel occupancy taxes to the comptroller. Previously, many intermediaries did not handle local taxes, leading to revenue losses for counties. The changes, backed by the Maryland Association of Counties, delay a full tax overhaul but enhance collection efficiency.
In Southern Maryland, where counties like Calvert, Charles and St. Mary’s feature waterfront properties popular for short-term stays, the new Maryland short-term rental taxes could boost local revenues. Hosts in these areas must navigate state sales tax alongside county-specific lodging taxes, such as Calvert County’s 5 percent room tax or St. Mary’s 2 percent. The region’s proximity to the Chesapeake Bay attracts vacationers, but operators have faced varying local rules. For instance, some Southern Maryland municipalities require licenses for rentals under 30 days, with taxes filed quarterly.
Lierman’s data scraping initiative could uncover underreporting in these counties, where short-term rentals support tourism but strain housing availability. A report from the National Conference of State Legislatures notes that states like Maryland are increasingly taxing short-term rentals through property and lodging mechanisms to capture economic impacts. In Southern Maryland, this means potential increases in funds for schools, roads and public services, as tax proceeds often flow back to selling jurisdictions.
Comparisons to other states reveal similar trends in Maryland short-term rental taxes. Virginia imposes a 5.3 percent state sales tax plus local transient occupancy taxes up to 8 percent, with platforms collecting on behalf of hosts. Pennsylvania requires a 6 percent hotel occupancy tax, and marketplaces like Airbnb remit directly in many localities. New York’s approach includes a 4 percent state tax and additional city levies, with data sharing agreements to aid enforcement. These models influenced Maryland’s legislation, as Lierman mentioned reviewing similar laws elsewhere.
The comptroller’s office emphasizes fairness in Maryland short-term rental taxes. Hosts can deduct expenses like maintenance and utilities on federal returns, but must report all income. Noncompliance risks audits or penalties, with the state providing resources for filing through the comptroller’s website. As of 2025, electronic filing is mandatory for most, simplifying the process but increasing scrutiny.
Local governments in Maryland welcome the centralized collection, which reduces administrative burdens. Worcester County, home to Ocean City, recently saw residents reject a proposed five-night minimum for certain rentals via referendum on August 6, 2025, highlighting tensions between regulation and property rights. In contrast, Southern Maryland counties have focused more on tax compliance than restrictions, with officials monitoring state efforts.
The initiative aligns with broader fiscal priorities under Lierman, who assumed office in 2023 as Maryland’s first female comptroller. Her administration has prioritized transparency, including unclaimed property searches and digital ad tax challenges. A recent court ruling on August 18, 2025, struck down Maryland’s digital ad tax on free speech grounds, but short-term rental enforcement remains unaffected.
For Southern Maryland residents, understanding Maryland short-term rental taxes is key. Hosts should register with the comptroller, collect taxes at booking and remit promptly. Platforms often handle state portions, but local taxes may require separate filings. Resources like Avalara’s MyLodgeTax guide offer county-specific details, aiding compliance.
As tourism rebounds post-pandemic, short-term rentals contribute significantly to Maryland’s economy, generating millions in taxes annually. The National Conference of State Legislatures estimates that proper taxation could add substantial revenue without new levies. In Southern Maryland, this supports initiatives like bay restoration and community events.
Lierman’s proactive stance on Maryland short-term rental taxes ensures equitable contributions, benefiting all residents through reinvested funds. County officials at the MACo conference expressed support, noting the potential for fairer revenue distribution. With regulations still unfolding, hosts are advised to monitor updates from the comptroller’s office.