Worcester County will see an increase in hotel room tax rate from 5% to 6%
OCEAN CITY, Md. – The Worcester County Commissioners had their bi-weekly meeting Tuesday morning in Snow Hill. One of the biggest topics was the potential hotel room tax rate increase pushed forth by Ocean City Mayor Rick Meehan.
At the meeting, things have been made official, the local room tax will increase from 5% to 6%. This applies to rental of hotels, motels, apartments, condominiums, and other sleeping accommodations.
Mayor Rick Meehan spoke with WMDT immediately following the 7-0 decision. “Here we are today, the resolution was brought forward and it did pass unanimously, which we needed it to do.”
The local tax is in addition to the statewide Maryland sales and use tax of 6%, which means – the combined total tax rate a visitor generally pays will now be at 12%.
Worcester County Commissioner of District 7, Joe Mitrecic, calls it a big money-making opportunity for the popular resort town. “It means a lot for Ocean City, it means about 5 million dollars a year.”
He adds that other areas in the county could see the potential benefits as well.
“You heard Berlin was here, Pocomoke sent a letter, it means money to them, and of course it means about $300,000 to the county.”
Commissioner Mitrecic said $300,000 could go towards things like pay raises for the Sheriff’s Office. The police department wants to add an additional position, and the extra hotel revenue could be used to offset the costs.
The legislation wasn’t simple, officials in Worcester County took time to agree on the increased tax resolution. Many wanted Ocean City to allow the county to use its wastewater sewer pump.
In order for all the officials to vote unanimously, that agreement had to be put into place.
“We are also working with Worcester County, as the county is facing some problems with their sewer districts. The landings and Assateague point, both of those systems are failing,” said Mayor Meehan.
Ocean City officials passed the sewer agreement in the first reading at its Mayor and Council meeting. The allotment now means the Ocean City outfall goes from one million gallons per day, to now one million one-hundred and seventy gallons per day.
Mitrecic tells WMDT, he’s pleased with the outcome.
“It’s a shame that it got tied together, it did, I don’t think it should’ve been, but someone taught me a long time ago, that you win the war, you may lose the battle, but you win the war, and that’s what’s most important.”
The legislation was proposed as emergency law, meaning it will take effect on January 1st, 2026.
