A measure to ensure private homeowners – particularly at the Jersey Shore – will not be subject to a 2018 law that extended New Jersey’s sales and occupancy tax to short term rentals was signed into law today by Governor Murphy.
In an effort to level the playing field between hotels, motels and transient accommodations like Airbnb, a 2018 law expanded the State’s 6.625 percent sales and use tax and 5 percent hotel and motel occupancy fee to short-term rentals.
The law (A-4814/4520) will require that transient accommodations only be subject to taxes if the rental is obtained through a marketplace, online or otherwise.
Bill sponsors, Assembly Democrats Joann Downey (D-Monmouth), John McKeon (D-Essex, Morris), John Armato (D-Atlantic), Bruce Land (D-Cape May, Atlantic, Cumberland), Wayne DeAngelo (D-Mercer, Middlesex), Eric Houghtaling (D-Monmouth), Vince Mazzeo (D-Atlantic), Nancy Pinkin (D-Middlesex), Matt Milam (D-Cape May, Atlantic, Cumberland) and Valerie Vainieri Huttle (D-Bergen) released the following joint statement:
“Over the past several months, we’ve listened to Jersey Shore homeowners – many of whom are still recovering from Hurricane Sandy – who are worried they’ll see far less summer guests this season as a result of the short term rental tax. Summer tourism is the heartbeat of the shore, and this law was never intended to hurt the private homeowners who help it grow and thrive.
“The bill signed into law today will help property owners who rely on word of mouth, signs, social media and longstanding customers to keep their rentals booked through the summer. It will help shore businesses keep customers flocking to their doors. And it will help tourists afford to have the vacation of their dreams right here at the Jersey Shore.”