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, 2018, businesses in Wildwood, North Wildwood, and Wildwood Crest collect a 2% Cape May Tourism Tax and a 6.625% New Jersey Sales Tax on tourism-related sales. (Combined rate, 8.625%) This is in addition to the 1.85% Tourism Assessment and the 3.15% State Occupancy Fee on hotel occupancies.
An update to the ST-375, Cape May County Tourism Sales Tax Collection Schedule, is available. 99 kb
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.