TRENTON, NJ — Shore homeowners who rent directly to vacationers are looking to salvage at least part of the summer from having to collect a new 11.6 percent tax on those short-term rentals.
The state Legislature has passed a bill (A4814) that ensures these homeowners are not subject to a 2018 law that expanded the state’s 6.625 percent sales and use tax, and five percent hotel and motel occupancy fee to short-term rentals — a law that was intended to only apply to Airbnb and other similar marketplace and online services.
Under the bill, approved by both the state Senate and Assembly, language has been changed to place these taxes solely on those types of “transient accommodations."
Now that the measure is sitting on Gov. Phil Murphy’s desk, the New Jersey Shore Rentals Coalition — the driving force behind the legislation — is pushing for him to waste no time in signing it.
“Every day that passes with this tax imposed is less money for families to spend while now on vacation at the Shore. The coalition urges [Murphy] to sign A4814, so that families can come to the shore and rent without having to pay a rental tax,” said Denise Payne, president of the nonprofit coalition, a group of vacation homeowners at the Jersey Shore working with state legislators to fast-track the legislation.
“The governor can immediately take action to make both this summer rental season more affordable for those vacationing in New Jersey,” she said in a statement. “Gov. Murphy is a strong supporter of tourism, and this will help both the renters and small businesses during our short summer season along the shore…Quick action is needed to save what remains of the summer vacation season.”
If Murphy does not act on the measure by August 11 — 45 days from its passage in the Legislature — it automatically becomes law, leaving less than one month before the end of the prime summer rental season.
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