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Inspector General warns Maryland MPIA limits could hinder county oversight; STRR audit finds 85% of listings unlicensed

Montgomery County Council Audit Committee · June 25, 2026
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Summary

The Montgomery County Inspector General told the Audit Committee that an Attorney General interpretation of the Maryland Public Information Act is restricting OIG access to records; the OIG's STRR audit found roughly 1,309 broker‑listed short‑term rentals unregistered with the county and potential uncollected taxes of about $196,000 in 2023.

The Montgomery County Inspector General told the Audit Committee that a Maryland Attorney General opinion has led state law to be applied in a way that limits the OIG's access to county records under the Maryland Public Information Act, complicating investigations and subpoenas. "Our office was denied a record that we had gotten just months before," the Inspector General said, adding that the issue will likely require work with county leaders and the delegation in Annapolis.

The OIG also briefed the committee on a October 2024 audit of short‑term residential rentals (STRR). Using listings subpoenaed from Airbnb and Vrbo for calendar year 2023, auditors identified 1,472 broker listings in Montgomery County and found only 177 matches in the county registration system — about 85% operating without a county license. "There were 1,309 properties that weren't registered with the County," the Inspector General said.

The audit estimated at least $196,000 in transient‑tax revenue potentially uncollected in 2023 from those broker listings; the OIG noted additional penalties and other noncompliance could raise the annual impact toward $1,000,000. The OIG issued four recommendations to strengthen enforcement and program administration; two recommendations were closed after DHCA relaunched the registration system, and two remain open pending formal procedures and a maintained master list of properties.

Kimberly Williams, a division chief in the Department of Housing and Community Affairs, described corrective steps DHCA took after assuming responsibility for the program in October 2024: fixes to the host‑compliance (Granicus) system, standard operating procedures, targeted hiring (including an IT specialist), outreach to owners, and an executive regulation that became effective June 12, 2026. "We have been tracking the short term rental listings since October 2024," Williams said, and reported that tracked unlicensed properties fell from roughly 700 in October 2024 to about 330 in April 2026.

Finance Director Mike Covey told the committee the county currently receives most STRR tax revenue in lump‑sum remittances from large platform aggregators, which provide little owner‑level backup. "They remit the taxes in large lump sums," Covey said. He recommended a new county finance/audit system or state reporting changes that would give local tax administrators the owner‑level detail needed to reconcile remittances and verify license compliance.

The committee asked staff to prepare a memo for the incoming county executive and new council members listing outstanding audit items, including the STRR recommendations, so the next administration can track progress. The Audit Committee did not take any formal votes on these items during the meeting.