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Today, Councilmember Shebra Evans introduced Bill 42-26, Transient Lodging Facilities – Short Term Residential Rental – Online Platform Compliance. The bill seeks to reduce the amount of revenue that is lost when Short-Term Residential Rentals (STTRs) operate without adhering to the current County licensing and fee structure that is in place.
Bill 42-26 would require a short-term rental platform to verify a rental license before listing a short-term rental in the County and prohibit the platform from collecting or processing payment for an unlicensed rental. Penalties would be established for non-compliance. Additionally, the Department of Housing and Community Affairs would be required to provide an electronic system to verify short-term rental licenses, and online rental platforms would be required to submit an annual report regarding rental occupancy in the County.
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“A report by the Office of the Inspector General (OIG) shared at an Audit Committee meeting this summer revealed that previously, more than 85 percent of short-term residential rentals in the County were operating without a license and the County was not receiving the taxes that were owed,” said Councilmember Evans. “According to the OIG, these lost revenues could approach close to $1 million per year. Bill 42-26 helps ensure that Montgomery County receives the fees owed from all STTRs operating in the County, thereby generating revenue that could be used to support much needed services for Montgomery County residents.”
The public hearing for Bill 42-26 is scheduled for Oct. 6. More information is available in the staff report.
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Read the original article at mcgov
