CAPE MAY – City council heard good news on almost all fronts at its Oct. 4 meeting. Beach tag sales were up for the year as was the occupancy tax revenue. One focus of discussion was the revenue from the newly restructured, tiered residential rental property licenses.
Just prior to the start of the 2022 summer season, the city moved to a fee structure for residential rental mercantile licenses that created six categories of license based on the size of the rental property.
A report from Dennis Crowley of the city’s Municipal Taxation and Revenue Advisory Committee (MTRAC) showed that 1,041 licenses were issued in 2022, earning the city $148,000 in revenue. That’s a big increase when compared with $69,000 in revenue for 2021, prior to the tiered fee structure being enacted.
Crowley said that despite the better performance under the new structure in 2022, the city has not yet identified the entire universe of rental properties that should be licensed. Many properties still exist in the transient short term rental marketplace without city knowledge. More comprehensive investigation and enforcement will be needed in 2023 as the city continues to improve compliance with its changes in licensing and fees.
The presentation was focused on the revenue generated by the new licensing requirements. But the requirements themselves also had a genesis in the need for the city to ensure the completion of proper safety inspections as an increasing number of property owners have succumbed to the allure of online transient rental opportunities.
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