COUGHLIN & WISNIEWSKI BILL REQUIRING TREASURY DEPARTMENT TO REGULARLY PROVIDE CERTAIN INFORMATION TO MUNICIPALITIES CONCERNING HOTEL OCCUPANCY TAXES ADVANCING TOWARD LAW

(TRENTON) – Legislation Assemblymen Craig J. Coughlin and John Wisniewski sponsored requiring the Division of Taxation to regularly provide certain information to municipalities concerning hotel occupancy taxes is advancing toward law.
“In the past, we have seen instances of confusion regarding which hotels and motels reside in specific municipalities. We have seen occupancy taxes delivered to the wrong municipalities.” said Coughlin (D-Middlesex). “Requiring the Treasury Department to regularly update municipalities and vice versa will hopefully eliminate any oversights and properly ensure that our state’s hotels and motels are paying their occupancy taxes on time.”
“The hotel occupancy tax, which I supported when it was originally introduced, has benefitted countless municipalities throughout the state of New Jersey. This bill will insure that the municipality that participates in this program will collect all of the tax revenue to which it is entitled.” said Wisniewski (D-Middlesex). “Under existing law, there have been instances where hotel & motels have become delinquent in their obligation to municipalities. This bill will substantially correct that problem.”
Under the bill (A-2579), the Division of Taxation would regularly provide a list of all of the hotels and motels in the municipality that submitted municipal occupancy tax revenue to the State for the period comprising the hotel tax distribution.
Additionally, every municipality that has adopted an ordinance imposing the occupancy tax would now have to annually provide the Treasury with the names and addresses of all hotel and motels located within the municipality.
Finally, the bill would make unpaid occupancy taxes a municipal lien on the real property comprising the delinquent hotel or motel. The bill requires the State Treasurer to provide a municipality written notification of nonpayment by a hotel or motel of taxes to be paid. The written notification would authorize the municipality to act as the collection agent for the outstanding balances of taxes due.
The bill was recently passed by both the General Assembly and Senate and now goes to the Governor for his signature.