FY2022 Adopted Operating and Capital Budget

FY2022 Adopted Budget Fund Budgets

Hotel Room Rental Tax

Hotel Room Rental Tax Hotel Rental Tax was implemented in FY2005, providing dedicated funding for the Tourism Council. A Memorandum of Understanding (MOU) was established that required the Tourism Council to provide funding to certain tourism related agencies in amounts similar to that previously provided by Frederick County. Bill No. 16 13, which became effective October 29, 2016, increased the hotel tax from 3% to 5%, and a new MOU was signed. After dedicating a County administrative fee, the new MOU sets aside 10% of the revenue stream to fund existing debt service, 12.5% for the Main Streets matching program, 12.5% for the Tourism Reinvestment in Promotion & Product (TRIPP) Program, 12.5% for county promotion via a Destination & Development Fund, and 62.5% for the Tourism Council's marketing & operations budget. Budget Highlights The FY22 budget is consistent with the FY21 Adopted Budget with only minor changes. However, this fund is expected to experience a decline in actual revenue collected for FY21 and FY22 related to the pandemic and subsequently less hotel rooms being rented.

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