OCEAN CITY – The introduction of a room tax policy highlighted discussions at a resort work session this week.
On Tuesday, the Mayor and Council were presented with a draft policy that clarifies for what purposes room tax revenues can be used. City Manager Terry McGean said the proposed document resulted from recent budget discussions, during which officials questioned the intent of the town’s room tax ordinance.
“We tried to reflect the spirit and intent of the ordinance that was passed …,” he said. “Again, this is our draft, and we welcome any comments or concerns as to how we interpreted what we believe the ordinance reflected.”
Currently, 42% of room tax revenues are dedicated to promoting the town, while the remainder is used to cover general fund expenses. The formula, approved by the council through an ordinance, also outlines approved expenditures, such as advertising, sponsorships, promotion of special events and more.
In recent years, however, the use of room tax dollars to pay general fund expenses has been a source of contention among council members and staff. And when staff last month presented the council with a list of general fund expenses covered by tourism dollars, officials agreed a policy was needed to outline the appropriate use of advertising funds for destination marketing.
Taxation and spending is all they know how to do!
OC is going to tax the businesses that make vacationing in town out of business. Smart, real smart