Occupancy Tax Proposal Fails In Ocean City

OCEAN CITY, NJ — A three percent occupancy tax will not be imposed on rental properties in Ocean City after a vote failed at the latest City Council meeting.

The tax would have applied to rental properties on online marketplaces, like Airbnb and VRBO, but hotels and motels were added due to Council wanting to be consistent. Read more: New Fees On Rental Properties Proposed In Ocean City

However, that addition contributed to why the vote failed. The proposal saw significant pushback from the local hotel and motel industry.

"Timing is everything," said Pete Voudouris, president of the Flanders Hotel. "And in my opinion, as I spoke to you, this isn't a great time."

He said that raising fees now would be wrong as many people are on tight budgets and asked Council not to adopt the ordinance.

"Perhaps most important is the overall impact this will have on the entire city," said Karen Barlow, representing the Beach Club Hotel and Beach Club Suites. "If we increase rates by an additional three percent tax, guests will likely stay fewer nights, and therefore there will be less spending in Ocean City and a negative overall impact on revenue for the community."

Michele Gillian, executive director of the Ocean City Regional Chamber of Commerce, also asked for the tax to be reconsidered, citing the chamber's support of local hotels and motels.

"Our hotels and motels are such an asset to Ocean City, and we want people to keep coming to America's greatest family resort," she said.

After hearing the concerns of the industry, City Council voted the ordinance down.