Easton council supportive of potential spike in hotel tax rate

EASTON — A plan to increase the accommodation tax rate in Talbot County was presented to the Easton Town Council at Tuesday night’s meeting.

Cassandra Vanhooser, the county’s director of economic development and tourism, recommended the increase to the council. It would raise the accommodation tax, or hotel tax, from 4% to 6% in the county.

“Anybody who’s renting a room to someone for less than four months who’s considered a ‘transient’ would be required to collect accommodations tax,” Vanhooser said.

Vanhooser pointed out that Talbot County’s rate is the lowest in the state. Around $2 million was collected throughout the county in accommodation taxes in fiscal year 2024. If the rate had been 6%, that total would have increased to just above the $3 million mark.

She noted the success of the county in the tourism industry. Despite the rate remaining stagnant since 2004, Talbot County has more than doubled its accommodation tax revenue.

“We consider this as an indicator of our success as a tourism destination,” Vanhooser said. “We know people are coming here. We know we’re commanding a premium price, and people are willing to pay that.”

In order to raise the rate, the county needs to ask state delegates this October to bring the proposed change to the General Assembly next year. The county is looking for support from three towns, including Easton, in order to move forward.

The towns of Easton, St. Michaels and Oxford collect revenues from the 4% tax on all hotels and short-term rentals within respective town limits or within a mile of those limits. The county collects the tax from lodgings that don’t fall in or within a mile of town limits.

“The county would like to hear a vote from you on whether you would support this or not, because obviously, we don’t want to go to the state legislature and ask for something that you do not support,” Vanhooser said.

Ward 2 Councilmember Don Abbatiello asked if the county reached out to hotels in the area for feedback on the spike. Vanhooser said the county’s tourism board has hotel representation, adding that the county is aiming to reach out to all hotels as a courtesy.

After a short discussion, the council voiced support for the proposed increase, unanimously voting in favor. No formal resolution was required for the agenda item.

“Talbot County obviously is not unique,” Ward 3 Councilmember David Montgomery said. “But we have attractions that are not matched by our neighbors, and for that reason, I fully support raising this to 6%.”