Legislators to consider overriding Hogan’s hotel tax veto
A bill vetoed by Gov. Larry Hogan in 2015 that would have forced online travel websites to pay the same sales tax rates as hotels may crop up again soon. The bill was supported by hotel companies, including Bethesda-based Marriott International. The companies pointed out that the playing field is uneven because websites such as Travelocity and Expedia buy blocks of hotel room at discounted rates and then only pay sales tax on the discounted rate, rather than what they charge the customer. The discrepancy results in the state receiving an estimated $3 million to $5 million less in taxes each year.
Overriding the governor’s veto is also a priority for Montgomery County legislators who are trying to keep Marriott from moving out of the county. State Sen. Richard Madaleno (D-Kensington) urged his colleagues to support the override at a December economic development meeting with county officials at the Silver Spring Library. He said the bill was Marriott’s No. 1 legislative priority.
“We have to override that veto,” Madaleno said. “If we don’t override that veto we may as well gift-wrap a new Marriott headquarters to D.C. because D.C. has passed that bill.”
On Tuesday, The Baltimore Sun published an editorial urging Maryland legislators to override all of the governor’s vetoes from the 2015 session, including the veto of the hotel bill. Miller said Tuesday he plans to schedule votes Thursday on veto overrides.
Bridges Fitness & Yoga opens pop-up studio
Spin, yoga, strength training and Pilates classes are now being held throughout the day at the newly opened pop-up studio for Bridges Fitness & Yoga. The new fitness center is operating out of a studio at the corner of Wisconsin and Montgomery avenues in Bethesda until it can complete renovations at the historic U.S. Post Office across the street, where it plans to be permanently located. A charter membership, which provides access to each class, is $129 per month, while drop-in group class rates are $28 each, according to the Bridges website.
Fantasy sports websites under fire in Maryland
Maryland is joining the hot-button debate about whether daily fantasy sports websites are gambling operations. In December, Comptroller Peter Franchot, Attorney General Brian Frosh and aides for Gov. Larry Hogan met to discuss the legality of the websites, which allow users to place bets and win money based on how athletes perform in actual games. In a letter issued last week, Frosh’s office wrote that day-betting on fantasy sports is not authorized by Maryland law, although traditional, season-long fantasy sports leagues are authorized. The letter asked that the General Assembly analyze the issues surrounding daily fantasy betting. Del. Eric Luedtke, co-chairman of the General Assembly’s Joint Committee on Gaming Oversight, told The Washington Post that the committee plans to examine the legality of the websites during this year’s General Assembly. On Monday, state Senate President Mike Miller told The Baltimore Sun that popular websites sites such as Draftkings and FanDuel either need to stop operating here or propose legislation to make their operations legal, according to The Baltimore Sun.
