Changes to Ocean City’s room tax policy will allow
advertising funds to also be used for a future sports complex.
On Monday, the Ocean City Council voted to pass the second reading of an ordinance that changes how the money the city receives from hotel rental tax can be spent. As adopted, the legislation allows advertising funds generated from room tax revenues to also be used for a sports facility.
From the outset, city officials have made it clear that any sports complex the city constructs in the coming years would be funded in partnership with the Maryland Stadium Authority. The city’s portion of that cost would come from room tax revenues generated by hotel and vacation rental stays.
Last year, the city successfully petitioned the Worcester County Commissioners to increase the room tax rate from 5% to 6%. The proposed ordinance brought before the City Council for adoption Monday maintains the previously adopted fund dedication for advertising – 44% of the first 5% of room tax collected, and 40% of the 1% increase – but would make the sports complex project an allowable expenditure.