OCEAN CITY, Md. - Worcester County is moving ahead with a proposal to raise the hotel room tax rate from 5 percent to 6 percent, a change county staff say would align with new state authority and could be in place ahead of an upcoming tourism season if approved. An emergency bill to lift the county’s maximum allowable rate was introduced at the Oct. 21 commissioners meeting, with public hearings planned for Nov. 18.
The discussion follows enabling legislation approved in Annapolis in 2024, which granted Eastern Shore code counties the option to increase their hotel rental tax to as high as 6 percent. County staff outlined a timeline that includes introducing the emergency bill, advertising the hearings, and taking final votes on Nov. 18.
Under a draft of the bill, the county’s code would be amended to allow a rate up to 6 percent on transient lodging, including hotels, motels, condominiums, cottages and similar accommodations. Any resolution setting a rate above 3 percent requires the unanimous consent of all seven commissioners.
Industry leaders say the tax is paid by visitors, not local businesses, and argue Ocean City would remain competitive with other East Coast destinations at 6 percent. County officials have framed the potential increase as a way to support tourism operations, marketing, and core services that see heavy use during peak months, including law enforcement and emergency response. The county has not set final allocations, which would be determined by subsequent action if the rate is raised.
Commissioners said the measure needs unanimous support to pass, describing continued outreach between county leaders and Ocean City officials. Some commissioners characterized the revenue impact as substantial for the resort area and modest for the county’s general fund, but emphasized the regional benefits tied to tourism. Public comment will be taken at the November hearings before any votes are cast.
If the emergency bill is adopted on Nov. 18 and a follow-on vote sets the new rate, county staff indicated the change could take effect before the next tourism season. Officials also noted that meeting the timeline requires both introduction and advertisement steps to stay on schedule for November action.
The county’s hotel room tax applies to transient stays in resort areas within Worcester County. The proposed change would not set the rate automatically, but would raise the ceiling that commissioners may adopt after public notice and hearing.
The Nov. 18 hearings are expected to include back-to-back items: public testimony on the emergency bill that raises the maximum rate, followed by a hearing on whether to increase the room tax itself. A two-step vote would be required, with a supermajority needed for the emergency bill and a unanimous vote to set any rate above 3 percent.