🎯 STRisker: Bulletin - Ocean City, NJ
New Fee on the Shore: Ocean City OKs STR Tax - City Approves 3% on Rentals
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New Fee on the Shore: Ocean City OKs STR Tax
Ocean City is dialing up the cost of a coastal getaway—but only slightly. On Thursday night, the City Council narrowly passed a new 3% tax on short-term rentals booked via platforms like Airbnb and VRBO. While the vote came in at 4–3, the impact could ripple through New Jersey’s favorite beach town for seasons to come.
The new tax applies exclusively to rentals made through online marketplaces, where booking activity has spiked in recent years. Unlike traditional Saturday-to-Saturday stays, these platforms often enable shorter, more flexible visits—and that, says Councilman Jody Levchuk, comes with added pressure on city services.
“It’s not just about tourism,” Levchuk noted. “It’s about managing the wear and tear on the town with more turnover and more usage.”
But not everyone’s thrilled. Visitors like Bobby Mesmer say vacationing is pricey enough as is. Others, like Laura Fox, believe the tax is a fair trade for supporting the community: “Three percent going back to the city—it makes sense.”
Councilman Dave Winslow tried to ease concerns by breaking down the math: a $2,500 rental would see just a $75 hike. “Most people are not going to leave Ocean City for $75,” he said.
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Still, the ordinance might not be the last word. Airbnb fired back with a statement suggesting the tax might be illegal under state law if not applied equally to all lodging—hotels, motels, and short-term rentals alike. Their public policy team argues that singling out online STRs could lead to litigation and hurt the very economy the city relies on. According to Airbnb, STRs generated nearly $1.3 billion in economic activity across New Jersey.
The new tax is set to take effect in 90 days, meaning its real impact will likely show up next summer. Whether vacationers will pay up without complaint—or whether legal challenges will delay the rollout—remains to be seen.
Either way, Ocean City’s decision puts it among a growing list of municipalities taking a closer look at how the STR boom affects their communities—and their coffers.
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