Overview: Are Short-Term Rentals Allowed in Leonardtown, MD?

YES, short-term rentals are permitted in Leonardtown, MD, subject to specific licensing requirements and regulatory compliance. As the county seat of St. Mary's County, Leonardtown operates under the county's comprehensive zoning framework while requiring additional local permits for short-term rental operations.

How to Start a Short-Term Rental Business in Leonardtown

Starting a short-term rental business in Leonardtown requires a systematic approach to ensure full compliance with local regulations:

1. Pre-Application Phase

• Property Zoning Verification: Confirm your property's zoning classification allows short-term rental use
• HOA/Co-op Review: Contact your landlord and review lease agreements, as hosts are bound by co-op or HOA rules
• Financial Readiness: Prepare for tax obligations including state and county accommodation taxes

2. Licensing Process

• Apply for Short-Term Rental License: Submit application to the St. Mary's County Department of Planning and Zoning
• Complete Required Inspections: Ensure property meets all applicable safety and health standards
• Obtain Certificate of Occupancy: Required before operations can commence

3. Tax Registration and Setup

• Register for State Sales Tax: 6% Maryland sales tax (automatically collected by platforms like Airbnb)
• Register for County Accommodations Tax: 5% St. Mary's County Public Accommodations Tax
• Platform Registration: Register with Airbnb, VRBO, or other platforms

Required Documents, Permits, Licenses, and Guidelines

Primary Licensing Requirements

1. Short-Term Rental License (issued by Department of Planning and Zoning)
2. Zoning Permit (required before any building or structure use)
3. Building Permit (if structural modifications needed)
4. Certificate of Occupancy (must be issued before operations begin)

Supporting Documentation

• Plot Plan: Scaled drawing showing property dimensions, structures, parking, and relation to property lines
• Health Department Certificate: Confirmation of water supply and sewage disposal compliance
• Property Deed or Lease Agreement: Proof of ownership or legal right to operate
• Tax Registration: State sales tax and county accommodations tax registration

Property Standards Compliance

• Safety Inspections: Meet all applicable building, electrical, plumbing, and fire safety codes
• Environmental Compliance: May require environmental permits depending on property location
• Accessibility Standards: Comply with ADA requirements as applicable

Specific Regulations for Short-Term Rentals

State-Level Regulations (Maryland)

• Sales Tax: 6% of listing price including cleaning fees (collected by Airbnb)
• Business Registration: May require state business registration
• Building Codes: Must comply with Maryland building, electrical, plumbing, and safety codes

County-Level Regulations (St. Mary's County)

• Public Accommodations Tax: 5% of listing price including cleaning fees
• Zoning Compliance: Must comply with St. Mary's County Comprehensive Zoning Ordinance
• Conditional Use Permits: May be required in certain zoning districts
• Critical Area Regulations: Additional restrictions for properties near waterways

Municipal Considerations (Leonardtown)

• Local Licensing: Short-term rental license from Department of Planning and Zoning
• Local Taxes: May have additional municipal taxes beyond county requirements
• Local Ordinances: Subject to Leonardtown municipal regulations

Zoning District Considerations

• Permitted Uses: Check specific zoning district for short-term rental allowance
• Density Requirements: Compliance with residential density standards
• Parking Requirements: Off-street parking standards apply
• Buffer Requirements: Setback and buffer requirements vary by zoning district

Operational Restrictions

• Occupancy Limits: Maximum occupancy based on property size and zoning
• Noise Ordinances: Compliance with county noise regulations
• Business Hours: Potential restrictions on check-in/check-out times
• Signage: County signage regulations apply

Tax Obligations and Compliance

State Taxes

• Maryland Sales Tax: 6% collected by Airbnb on behalf of hosts
• Filing Requirements: State tax returns required even when collected by platform

County Taxes

• St. Mary's County Public Accommodations Tax: 5% of booking price
• Remittance Forms: Available through St. Mary's County Finance Department
• Filing Frequency: As determined by county regulations

Additional Considerations

• Business Personal Property Tax: May apply to rental furnishings and equipment
• Income Tax: Rental income subject to federal and state income taxes
• Record Keeping: Maintain detailed records of all rental income and expenses

Contact Information

Primary Local Authority

St. Mary's County Department of Planning and Zoning

• Address: 23150 Leonard Hall Drive, Leonardtown, MD 20650
• Phone: (301) 475-4200
• Website: www.stmaryscountymd.gov

Tax Administration

St. Mary's County Finance Department

• Contact: Becky Trossbach
• Email: becky.trossbach@stmarysmd.com
• Phone: (301) 475-4200
• Website: www.stmarysmd.com/finance

State Resources

Maryland Comptroller

• Website: www.marylandtaxes.gov
• Phone: 1-800-MD-TAXES

Health Department

St. Mary's County Health Department

• Phone: (301) 475-4330
• Website: www.smchd.org

Additional Contacts

St. Mary's County Board of Appeals

• Phone: (301) 475-4200

Important Compliance Timeline

1. Property Acquisition: Verify zoning compliance before purchase
2. License Application: Submit 60-90 days before planned operations
3. Inspections: Schedule 30-45 days before operations
4. Tax Registration: Complete before first booking
5. Platform Setup: Complete after all permits obtained

Source Pages and References

1. St. Mary's County Public Accommodations Tax Information

   • Source: Airbnb Help Center - St. Mary's County, MD
   • Direct Link: County Finance Department
   • Tax Form: Fillable Public Accommodations Tax Form

2. St. Mary's County Comprehensive Zoning Ordinance

   • Source: St. Mary's County Zoning Ordinance PDF
   • Authority: Article 66B of the Annotated Code of Maryland

3. Local Market and Licensing Information

   • Source: Summer Management Company - Leonardtown Market Guide

Key Takeaways for STR Investors

• Full Compliance Required: Leonardtown requires comprehensive licensing and compliance
• Tax-Friendly: Clear tax structure with defined rates and collection procedures
• Seasonal Market: Strong summer demand with winter off-peak opportunities
• Regulatory Support: Established framework through county planning department
• Professional Management Recommended: Complex regulatory environment suggests professional management may be beneficial

Disclaimer: This guide is based on information available as of 2025. Regulations may change, and investors should verify current requirements with local authorities before making investment decisions.