CAPE MAY – After years of inaction by previous city officials, the Cape May City Council June 15 adopted an ordinance raising the municipal hotel and motel occupancy tax from 2% to 3%and extending the tax to transitory short-term rental properties often booked through online apps, like Airbnb. The ordinance requires the new tax be paid by the user.
Given the need for state approval, the ordinance will likely not be effective until after Jan. 1, 2022. The city did not want the new ordinance to have any impact on the current summer.
Deciding if regulations are needed for short-term transient rentals is an issue of debate in municipalities across the county. In Cape May, the call to extend the occupancy tax to such properties was a goal of the city’s recently activated Municipal Taxation and Revenue Advisory Committee, which supported the move. The increase has long been urged by the city’s Taxpayers’ Association.
