ST. MICHAELS, MD. - Leaders in Talbot County are contemplating an increase in the accommodation tax, which would raise the cost for visitors staying in hotels and lodging establishments. If approved, the tax would rise from 4% to 6%, impacting guests who stay in local accommodations. However, bed and breakfast owners are concerned about the potential negative impact on their businesses.
Debra Alms, owner of the Hambleton Inn in St. Michaels, expressed significant concern over the proposed tax hike. "The majority of us are already 30 to 40 percent down this year compared to last year in occupancy rates, and we just can't seem to figure out why," Alms said. "I will probably have to close my doors if the increase happens."
Despite these concerns, the town of St. Michaels estimates that the tax increase would generate approximately $425,000 in additional revenue. Dan Spiegel, representing the St. Michaels Historic District Residents Association, emphasized the importance of the hike. "St. Michaels, even though it's a small town, has a big police force and a large town staff to accommodate the needs of increased levels of tourism," Spiegel said.
Spiegel also suggested that the tax hike could potentially benefit small bed and breakfasts in the long run. "One of the ideas on the table is if we increase this accommodation tax and reduce property tax for residents, we would also reduce the property tax for small B&Bs and small hotels," he noted.
The proposal, initiated by Talbot County Council members, would await approval from the St. Michaels commissioners.