The Tourism Improvement and Development District Act, P.L. 1992, C. 165, authorized municipalities in Cape May County to require certain businesses to collect an additional 2% retail sales tax on tourism-related retail sales and/or pay a tourism development fee. At present, businesses in Wildwood, North Wildwood, and Wildwood Crest are affected.
Tourism-related sales include the following items (if also taxable under the Sales and Use Tax Act): Room rental in hotels, motels, or boarding houses; food and drink sold by caterers, restaurants, taverns, and similar establishments (not including vending machine sales); admission charges to amusements such as movie theaters; sporting, drama, or musical events, and amusement rides; and cover charges by nightclubs and cabarets.)
Effective January 1, 2017, businesses in Wildwood, North Wildwood, and Wildwood Crest collect a 2% Cape May Tourism Tax and a 6.875% New Jersey Sales Tax on tourism-related sales. (Combined rate, 8.875%) This is in addition to the 1.85% Tourism Assessment and the 3.15% State Occupancy Fee on hotel occupancies. Please note that these rates are scheduled to decrease on January 1, 2018. The State will adjust rate schedules at that time.
An update to the ST-375, Cape May County Tourism Sales Tax Collection Schedule, is available.
Disposition of Revenues
The State Treasurer collects revenues and places them in a special reserve fund to pay principal and interest on bonds and notes issued by the tourism authority for tourism promotion projects and activities. The Division of Taxation administers the 1.85% tourism assessment. The State deposits revenues collected in a tourism assessment fund.