Beach Tag Transfer Ban Unconstitutional

CAPE MAY, N.J. - April 29, 2002 — In a victory for summer visitors, a judge Monday struck down as unconstitutional a city ordinance banning hotels from providing complimentary beach tags to their guests.

Superior Court Judge Raymond A. Batten said the ordinance, which was enacted to stop the reuse of beach tags, was "undeniably a violation of equal protection" provisions contained in the U.S. Constitution because it imposed no such restriction on people who buy beach tags and then share them with visiting relatives and friends.

He also ordered the city to establish a separate bank account and accounting system for its beach operation beginning in 2003.

Beach tags are small badges sold by shore municipalities that charge for use of their beaches. Clipped onto swimsuits and beach chairs, they signify to beach tag inspectors that the owner has paid the fee.

For more than 20 years, the transfer of tags-from one person to another, or from a hotel operator to a guest-was permitted. Most hotels and inns that bought the tags passed them on to guess at no charge.

But two years ago, the city began scrutinizing the practice because it was losing about $100,000 on beach operations. The idea was to capture the revenue lost every time a new guest checked in and was provided with a beach tag by the hotel, instead of having to buy one for himself from the city.

The money raised by beach tag sales wasn't enough to cover the cost of beach maintenance, lifeguard protection and other services, city officials said.

At first, the city enacted a new provision calling for the creation of commercial beach tags, which cost $22 apiece, as opposed to the $13 charge for regular tags.

But last year, the city adopted a new ordinance banning the transfer of tags for commercial gain and eliminating the commercial tag designation.

Hotel operators went to court, saying it was unconstitutional to allow homeowners to share their beach tags but prevent hotels and others from doing the same.

"Tourism is the lifeblood of Cape May, and it was bad for business," said Francesca Geores, co-owner of the Inn at Journey's End, a five-unit B&B. "We got complaints from guests who thought the city was becoming unfriendly to tourism. We tried for a political solution, tried to impress upon City Council that it was arbitrary, but they wouldn't listen. So we had to seek a legal solution."

As part of the ruling, Batten also struck down a provision limiting beach tag sales to five per person. And he extended the deadline for buying tags at the pre-season price of $13 to June 15, from May 1. After that, they will cost $17.

City officials were disappointed.

"He made his decision and we'll have to abide by it," said Mayor Jerome Inderwies.

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Author: 6 ABC-AP