Through a new ordinance, the Ocean City, NJ City Council is looking to place a ~3% tax on online shore rentals through platforms like Airbnb and VRBO. According to reports, the new tax increases could generate ~$1,800,000 for the city.

City Council President Pete Madden said the tax would not apply to hotels, which opposed the original ordinance that was introduced in December. The new ordinance specifically targets rentals through “transient space marketplaces” (fancy term for Airbnb/VRBO)

Although some rental property owners may not welcome the change, there are currently zero local taxes on rentals booked through these online platforms. It’s important to note that hotel visitors already pay +5% in taxes, through the “state occupancy tax”.

If the ordinance is approved, there will be a public hearing and final vote, scheduled for July 17th. Click here to subscribe to the OCNJ Current so you don’t miss our updates.