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Room Tax Hike Efforts Underway

OCEAN CITY – Officials say they will make another attempt at enabling legislation to allow the county to increase its room tax rate.

On Monday, City Manager Terry McGean told the Mayor and Council officials have been working with state elected leaders and the town’s lobbyist to reintroduce a bill in the 2024 General Assembly session that would allow Worcester and all other code counties to increase the hotel rental tax rate from 5% to 6%. While legislation failed to pass the Senate last year, he said he was hoping for a better outcome this coming year.

“The mayor and our lobbyist, we’ve been working with various state elected officials since that session to improve the bill’s chances of success,” he said, “and we will be reintroducing that bill in the 2024 session.”

In 2022, the Worcester County Commissioners, at the request of Ocean City, worked with state representatives to pass enabling legislation in the General Assembly that would allow the county to increase its room tax threshold. However, officials discovered the state constitution required Worcester to obtain approval from all other Eastern Shore code counties, including Caroline, Kent and Queen Anne’s counties.

“In 2022, we tried to get the state law changed specifically addressing Worcester County, to allow us to go up to 6%,” McGean explained. “Ultimately, legally, we were not able to do that. The State Department of Legislative Services told us we could not just carve out Worcester County. Any change had to apply to all four of the Eastern Shore code counties.”

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1 thought on “Room Tax Hike Efforts Underway”

  1. No.

    I want to see.tue spreadsheets for Oceans Callin. What concessions were made? Parking lots in the inlet were 50 bucks a day, yet only 10 bucks for bikers and cars? Did the promoter require city to pay them more if they tried to make money?

    3 bars had access to Oceans Callins folks since all were fenced in. Each day a hefty cover charge, yet bikers and cars nada? How much revenue from the buses. Did OC receive any of the gate revenue or food/drink? $18 for 25 ounces of beer….much more for deinks?

    Money made goes to taxes so there is no increases. Increase room tax it trickles down eventually to the few locals we have. Why? Prices for everything else.goes up. Less revenue generated, means more TAXES.

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