About the Tax
Transient Occupancy (lodging or room) Tax is a tax on the rentals of hotels, motels, guest rooms, campgrounds, and other temporary lodging of no more than 30 days. This is a 5% tax which is assessed to the consumer and collected by the business. The business then reports and pay the amounts collected on a monthly basis to the commissioner of the revenue’s office.
Note: 3% of this tax is used to promote tourism in Caroline County.