ROCKVILLE, Md., Nov. 10, 2026, Today, the Council passed Bill 42-26, Transient Lodging Facilities – Short Term Residential Rental, Online Platform Compliance, led by Councilmember Shebra Evans, who serves on the Government Operations and Fiscal Policy Committee and the Education and Culture Committee. The goal of the legislation is to reduce the amount of revenue lost when short-term residential rentals operate without adhering to the current Montgomery County licensing and fee structure.
“The passage of Bill 42-26 is an important step for the County, ensuring that short-term residential rental operators meet their licensing and tax obligations,” said Councilmember Evans. “Everyone who operates a business in the county must adhere to the same rules. This legislation strengthens accountability and allows the County to collect revenue that can be directed toward services our residents depend on.”
The bill requires that a short-term rental platform verify that a rental license from the County exists before listing that short-term rental. It also requires the Department of Housing and Community Affairs (DHCA) to provide an electronic system for verifying short-term rental licenses, which must be publicly accessible on the department’s website.
Additionally, online rental platforms will be required to submit an annual report regarding rental occupancy in the County. Penalties for noncompliance by a short-term rental platform will be established.
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The legislation was cosponsored by Council President Natali Fani-Gonzalez, Council Vice President Marilyn Balcombe, and Councilmembers Kate Stewart, Kristin Mink, Laurie-Anne Sayles and Dawn Luedtke.
Bill 42-26 will become effective July 1, 2027, to provide time for DHCA to onboard the electronic verification system. The Council staff report and bill can be viewed here.
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