Cape May Bed and Breakfasts Closing

Cape May, New Jersey, long a haven for beautiful bed and breakfasts, is seeing many innkeepers get out of the business. Numerous B&Bs have been converted to rental units or condos, according to an article in The Press of Atlantic City. One innkeeper blames a 7 percent tax increase enacted in 2003 for a dramatic increase in complaints from guests. That tax is on top of the state's 6 percent sales tax, for a total tax of 13 percent. The innkeeper goes so far as to predict that in a decade, few if any bed and breakfasts will survive in Cape May.