OCEAN CITY – With little discussion, resort officials this week approved on first-reading an ordinance aimed at ensuring all rental properties in Ocean City are acquiring the appropriate rental business license and remitting room tax.
The Mayor and Council had before them on Monday an ordinance for first reading intent on shoring up the rental license and room tax remittance issues. For the last few years, Ocean City has been working on code changes that will help ensure all rental properties in the resort are acquiring rental licenses regardless of how the properties are rented, whether it’s through a traditional rental agency, online or through the proliferating third-party platforms such as Airbnb, VRBO or similar internet sites. The second part of the equation is ensuring rental properties are remitting room tax and sales tax, which are sent to the county and come back to the resort based on an established formula.
Resort staff has been working with Worcester County officials on both sides of the equation in an effort to make sure the rental housing codes for both jurisdictions jibe. Heretofore, the town and county rental codes have not been in synch. With the changes the county has made, there is now an opportunity to alter that and make sure licenses are being acquired and room tax is being collected, especially with the non-traditional rental formats.
The changes presented in the ordinance on Monday include that requirements would apply to all housing types, and rental advertisements would have to include the town’s license control number and require certification of tax payments. In addition, there are sections that apply to fines and penalties, according to Planning and Community Development Director Bill Neville.
“The Mayor and Council seeks to improve the compliance of all property owners, hosting platforms and property managers in obtaining the required license for rental housing units, and to assist with the collection of applicable room tax payment by Worcester County,” he said at a meeting late last month. “To address the unique challenges of monitoring and enforcing these requirements for properties advertised through internet services and social media, town code amendments are proposed to require that all advertisements include the town license control number assigned to each property owner.”
Nothing but government intrusion and enhancing their revenue stream!