OC officials want legislation enacted by Jan. 1, so new rates can be set for 2026
The Worcester County Commissioners are proceeding legislatively to consider an increase in the county’s hotel room tax, a move requested by Ocean City officials to generate millions in tourism revenue.
Five of seven commissioners raised their hands at Tuesday’s meeting to affirm their support of a bill that would increase the room tax collection limit from 5% to 6%. Commissioners Jim Bunting (District 6, Bishopville) and Chip Bertino (District 4, Ocean Pines) did not raise their hands.
Ocean City wants the tax increase enacted by Jan. 1, so hotel and motel operators can set new room rates ahead of summer 2026 bookings, according to Mayor Rick Meehan.
While the county and its other municipalities also would benefit financially from a 1% increase, the resort stands to gain the most.
Ocean City could see an estimated $5 million in new room tax revenue, based on fiscal 2025 data, which resort leaders say will mostly go toward tourism and hospitality marketing. It also would help fund new public safety expenses.
To meet that Jan. 1 deadline, however, the commissioners would have to adhere to a strict timeline: legislation to authorize a room tax increase would have to be introduced at the board’s Nov. 18 meeting, along with a public hearing.
The commissioners would have to pass that authorization bill as emergency legislation, meaning it would take effect immediately, instead of the usual 45 days.
While such a bill would authorize the county to increase its room taxation cap by 1%, it doesn’t enact the change. That will require the commissioners to vote again, and it has to be unanimous to take effect.