OCEAN CITY – Ocean City’s electorate will have the opportunity to vote on an ordinance passed late last year that will scale up the percentage of room tax revenue dedicated to marketing after the town’s elections board this week ratified the number of signatures in a petition for referendum.
In December, the Mayor and Council narrowly passed an ordinance altering the formula for how a percentage of room tax generated in the resort is distributed to marketing and advertising. By way of background, Ocean City’s room tax in 2019 was raised from 4.5% to 5% with about 44% percent of the revenue dedicated to marketing and advertising and 56% dedicated to the town’s general fund to help offset the increased cost of tourism, including fire and police services, public works, and salaries and overtime from the growing list of special events, particularly in the offseason.
In December, a divided council approved an ordinance that would gradually scale up the percentage of room tax revenue dedicated to destination marketing, advertising, promotions, sponsorships, special events and the like over the coming years. For example, for fiscal year 2023, 2% of the room tax revenue would be dedicated to destination marketing, with that figure increasing to 2.1% in fiscal year 2024 and 2.2% in fiscal year 2025.
Local resident and former councilman Vince Gisriel from the beginning publicly challenged the ordinance on the grounds the scaled increases in the amount of room tax dedicated under the broad umbrella of marketing and advertising would exponentially grow those budgets at a rate faster than the general fund growth. To that end, in December, Gisriel sent a letter and a draft petition for a referendum on the room tax ordinance to the city solicitor for approval.
The city solicitor approved the draft petition on the room tax ordinance, setting in motion a 40-day window in which Gisriel and the petitioners would need to acquire the requisite number of signatures to bring the question to referendum. The city charter requires signatures representing 40% of those who voted in the last municipal election to put the referendum question on the ballot in the next municipal election.
Vote NO!
I have already voted with my wallet and I no longer choose OC as my vacation destination. Beaches are much better down south and the appreciate the business.