Airbnb guests slammed with new $75 fee, but this legal loophole could save your family big

Families planning a beach getaway to Ocean City, New Jersey, may be in for an unpleasant surprise as a new 3% fee is being added to vacation rentals booked through platforms like Airbnb and Vrbo, as per a report. But while the new rule may raise costs for some travelers, there’s one key loophole that could help visitors avoid the charge entirely, according to The Sun report.

New 3% Rental Tax Approved by Narrow Vote In New Jersey

Passed by a narrow 4-3 vote, the new tax means vacationers using online rental sites could see an extra $75 tacked onto a typical $2,500 stay, as per the report. The city says the new fee will go into effect in about 90 days after its passing, as per The Sun report.

What It Means for Ocean City Vacationers

Ocean City's Council has added the tax because consumer demand has gone up for the shore town, according to the report.


Council Member Dave Winslow said in defense of the tax, saying, "It's not astronomical," and then pointed out that, "Say on a $2,500 rental, it's only $75. Most people are not going to leave Ocean City for $75," as quoted in The Sun report.

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Why Ocean City Passed the Tax

City officials argue that a surge in tourism is straining local resources, especially as demand for short-term rentals skyrockets, as per the report. Some homes are now offering one-night weekend stays, which council members say puts additional pressure on services like sanitation, policing, and public maintenance, according to the report.

Council Member Jody Levchuk, who supported the fee, said that as more families visit, more resources are used, as reported by The Sun.

Even last year, the council had tried to pass a similar tax, but the move was squashed, as per the report.

Opposition Says It's ‘Taxing and Taxing’

One of the city council member who voted against the new law, Keith Hartzell said that, “We keep taxing and taxing and taxing," adding that, "It never ends," as quoted in the report.

$60 Million in Online Rentals Last Year Alone

Meanwhile, just last year, over $60 million in Ocean City rentals were processed through online platforms like Airbnb and Vrbo, according to OCNJ Daily.

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Legal Loophole: How Families Can Avoid the Fee

However there is a catch in the new tax and potentially good news for budget-conscious families, the new tax only applies to bookings made through online travel agencies, as per The Sun report. If you book your beach house through a local real estate office, the fee doesn’t apply, according to The Sun report. You can also opt to stay in hotels and motels to exempt from paying the tax, as per the report.

Airbnb Pushes Back

Airbnb has spoken out against the move, warning that the added cost could hurt local businesses and push families out, according to the report.

The platform's public policy manager Alain Xiong-Calmes said in a statement to The US Sun, "In Ocean City, where most guests come from within the New Jersey region, this short-term rental tax risks pricing out families seeking affordable stays," as quoted by in the report.

New Jersey Residents Voice Frustration Online

Even New Jersey resident are unhappy with the move, with residents like Bobby Mesmer saying that "It's getting too expensive across the board," and added that, "The rentals are already expensive enough," as quoted by The Sun.

Some residents even went on social media to express their frustration with the new fee, according to the report. One social media Facebook user said that, "My family has been enjoying OC for years but you have really priced yourself out of the market for a family vacation. We went down for the day last week and there was so much parking," adding, "Obviously, people are not renting this year including us," as quoted in the report.

Another user wrote that, "Stop spending your hard earned money in OC," adding, "Plenty of other places to vacation," as quoted by The Sun.

FAQs

How much will the new Airbnb fee cost me?
It’s a 3% charge, so around $75 on a $2,500 rental.

Can I avoid the tax by booking differently?
Yes. Bookings through local realtors or hotels/motels are exempt.