🎯 STRisker: Bulletin - Ocean City, NJ
Ocean City’s Tax in Turbulence: Airbnb Fights Back Over 3% Fee
Conflict, Cash, and Clicks: Ocean City’s STR Tax Battle
Ocean City’s attempt to cash in on short-term rental bookings through a new 3% occupancy tax has quickly turned into a courtroom-style clash. Passed on July 17 by a narrow 4–3 City Council vote, the ordinance applies only to “transient accommodations” like Airbnb and Vrbo rentals — not hotels, motels, or realtor-booked lodgings.
Airbnb’s legal team fired back in August, arguing the move violates New Jersey law by unfairly targeting online platforms. The company’s latest salvo goes further, accusing two council members — Pete Madden and Jody Levchuk — of conflicts of interest due to their real estate connections. Madden owns a Sotheby’s Realty franchise, while Levchuk manages rental properties in town. Airbnb claims they should’ve recused themselves, saying their votes were decisive in passing the tax.
Social Listening 🎧: Podcast
Policy talk doesn’t just happen in the news cycle—it can also live in long-form audio. STRisker’s Podcast Signal turns hours of episodes into actionable insight, indexing transcripts so you can surface key mentions of STRs, ordinances, and local decision-makers in seconds.
Both councilmen deny any wrongdoing. Madden dismissed the claim as a “reach,” while Levchuk suggested Airbnb’s letter was an attempt to retaliate after the tax passed. Still, Airbnb’s argument underscores its larger goal: overturning the ordinance before it takes effect.
City officials estimate the new tax could bring in $1.8 million annually — extra revenue they say will ease the burden on local taxpayers without hiking property taxes. The measure comes after over $60 million in online bookings were recorded in Ocean City last year. Yet opponents argue it’s inconsistent, since hotels and motels (already paying state-level taxes) are exempt.
The first draft of the ordinance included hotels, but that version was scrapped after strong opposition from the hotel industry and local chamber. Council members supporting the revised measure call it a “balanced compromise,” while critics like Councilman Sean Barnes argue it creates an uneven playing field and could drive visitors away.
Airbnb insists the tax will hurt the local tourism economy by making vacations less affordable for regional families. The ordinance now sits with the New Jersey Treasury Department for review, expected to wrap up within 90 days. But as legal threats linger and council ethics are questioned, Ocean City’s “fair share” tax may face rough seas before it ever reaches shore.
Stay Updated with STRisker
STRisker offers tools and features to keep you updated with the Short-Term Rental movement across the U.S.
👍 We’d love your feedback.
We're always looking for ways to improve Bulletins.
Was this one useful to you? Other topics you'd like to see get covered?
✉️ Just reply directly to this email. We read and respond to every message!
-Will McClure
🙋 P.S.
Know someone else who should be reading this Bulletin? Feel free to forward this along. We want to make sure operators and stakeholders are aware of regulatory changes in their area.