ST. MICHAELS, MD - Talbot County’s longstanding debate over raising its accommodations tax is gaining momentum as the county moves closer to making a decision.
Currently set at 4%, the accommodations tax has not been adjusted in 20 years, making it the lowest in Maryland. The county is now considering increasing the tax to 6%.
"That's because things have increased in price. We haven't raised our tax in 20 years, and we are the lowest in the state of Maryland," said Cassandra Vanhooser, Talbot County’s director of tourism.
If approved, the tax increase would raise the cost for visitors staying in hotels, Inn's, or bed-and-breakfasts. According to Vanhooser, municipalities including Easton, St. Michaels, Oxford, Trappe, and Queen Anne have expressed support for the proposal.
However, some business owners, like Will Workman, who operates the George Brooks House in St. Michaels, are concerned about the potential impact on tourism.
"That's another $10 that's added into the cost of staying here in St. Michaels or this area, so you got to realize we're competing with other places here on the Eastern Shore," Workman said.
Workman also believes the tax should be more broadly applied to other tourism-related businesses.
"We would like a tax increase to apply to all the other businesses that benefit from tourism. So the restaurants, the bars, the boat trips, etc.," he said.
If the tax increase moves forward, the county plans to allocate the additional revenue toward marketing and economic development efforts. Municipalities intend to use their portion of the funds for services utilized by visitors, such as police, garbage collection, and road maintenance.
Local businesses worry the proposed hike could deter tourists from visiting. Raising the accommodations tax requires state approval, and the county council must first vote to request state support. That vote is scheduled for Tuesday, Dec. 10.