Hotel & Motel Tax Remittance Info

Any facility providing short-term lodging (no more than 4 consecutive months) for a fee in Allegany County is required to collect an occupancy tax from persons occupying such rooms at the rate of 8% of the per-diem rental rate charged for each room. This law applies to all “hotel” facilities including residences and tourist homes, not just traditional hotels and motels. See the following definitions as defined in Article 81, Section 411F.

The term hotel, motel, apartment, cottage, or other similar place means any public or private hotel, inn, hostelry, tourist home or house, motel, rooming house, apartment house, cottage of similar lodging place, offering sleeping accommodations or space for one or more persons at a time, and the owner and operator thereof, which for compensation, holds out to furnish or furnishes sleeping accommodations or space to any transient.

These funds are invested back into the community through Allegany County Tourism, the official Destination Marketing Organization, local municipalities, and designated local projects.

What is the Tax Rate:

The Hotel/Motel Tax rate is 8% of the total room rental collected.

Who Pays and Who Collects:

Any visitor who rents a “hotel” for no more than 4 consecutive months in Allegany County must pay the 8% Allegany County Hotel/Motel tax. All lodging facilities are required to file a tax return and remit the occupancy tax on a monthly basis.

Here is a helpful resource on setting up the Lodging Tax in AirBnB:  How does occupancy tax collection and remittance by Airbnb work? - Airbnb Help Center.

Due Date:

A hotel shall complete, sign and file a Hotel and Motel Room Monthly Report on or before the 15th day of each month. The tax return will report activity for the prior month. For example, the December tax return will be due on or before January 15th. You can email Jena Pensyl - jpensyl@alleganygov.org. If you did not collect for the month, or for questions regarding collections

Interest and Penalties:

To avoid any interest and penalty charges, Hotel Room Rental tax returns should be post marked or delivered on or before the 15th of each month. The interest rate for each month or fraction of the month is 0.5%. If a hotel fails to pay the tax within one month after the payment is due, the hotel shall pay a tax penalty of 10% of the unpaid tax in addition to the interest charges.

Mail payment to:

Allegany County Finance Office
701 Kelly Road, Suite 205
Cumberland, MD 21502

Make check payable to Allegany County Commissioners