Education - Maryland Institute for Literacy and Equity - Establishment
Summary
HB1277 requires the Department of Natural Resources, beginning in fiscal year 2027, to assess and collect an 8% hotel rental surcharge on rental units at the Savage River Lodge in Garrett County. The department must remit the surcharge proceeds to the Comptroller, who will distribute them to Garrett County. The bill is a targeted revenue measure tied to a specific state-owned or state-regulated lodging property rather than a broad statewide tax change.
Under the bill, Garrett County must use the portion of the surcharge attributable to the first 6% rate to designate funds for county promotion, while the amount attributable to the surcharge above 6% must go to the county general fund. The act takes effect July 1, 2025, but the surcharge collection begins later, in fiscal year 2027. The bill adds a new section to the Natural Resources Article, creating a specific statutory framework for collecting and distributing lodging surcharge revenue from the Savage River Lodge.
Impact
HB1277 amends the Natural Resources Article by adding a new section that directs the Department of Natural Resources to impose and collect a hotel rental surcharge at the Savage River Lodge and route the revenue through the Comptroller to Garrett County. It creates a dedicated revenue stream for the county and specifies how the county must allocate the funds between promotion and the general fund. The bill affects the Department of Natural Resources, the Comptroller, Garrett County, and lodging customers at the Savage River Lodge, but does not create a general statewide hotel tax.
Sentiment
The bill appears to have been broadly supported in the House, passing third reading with 133 yeas and 2 nays. The committee report was favorable with amendments, suggesting the measure was generally acceptable to legislators but required some technical or policy adjustments before passage. No committee transcript was provided, so the available record shows strong overall support with limited opposition.
Contention
The main point of contention is likely the imposition of a new 8% surcharge on rental units at the Savage River Lodge, which directly affects lodging customers and the lodge’s pricing structure. Another possible issue is the earmarking of revenue for county promotion and the general fund, which may raise questions about local use of state-collected funds and whether the surcharge is appropriately targeted. The near-unanimous vote indicates any objections were limited and did not prevent passage.