COUGHLIN & WISNIEWSKI BILL REQUIRING TREASURY DEPARTMENT TO REGULARLY PROVIDE INFORMATION TO MUNICIPALITIES ON HOTEL OCCUPANCY TAXES NOW LAW

(TRENTON) – Legislation Assemblymen Craig J. Coughlin and John Wisniewski sponsored requiring the Division of Taxation to regularly provide information to municipalities concerning hotel occupancy taxes is now law.
“We’ve seen instances of confusion regarding on which hotels and motels reside in specific municipalities and 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 law 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 former law, there were instances where hotel and motels became delinquent in their obligation to municipalities. This will substantially correct that problem.”
Under the law (A-2579), the Division of Taxation will regularly provide a list of all 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 will have to annually provide the Treasury with the names and addresses of all hotel and motels located within the municipality.
Finally, the law will make unpaid occupancy taxes a municipal lien on the real property comprising the delinquent hotel or motel.
The law 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 will authorize the municipality to act as the collection agent for the outstanding balances of taxes due.
The bill was signed into law on Wednesday.