Airbnb Amendment on Governor’s Desk

Bill Would Exempt Homeowners From Collecting the Tax
By Maria Scandale | Jul 10, 2019

Surf City, NJ — A bill that would exempt homeowners from paying the new Airbnb tax is on Gov. Murphy’s desk. It affects accommodations being rented directly from shore homeowners. NJ A4814 makes transient accommodation taxes and fees applicable only if the rental is obtained through a marketplace or if it is a professionally managed unit.

If the bill becomes law, homeowners who rent their properties by dealing directly with a client – rather than using a website or other marketplace to contract and collect payment for rentals – would not have to collect the tax, as the Philadelphia Inquirer summarized in its own update. Homes rented through licensed real estate brokers were already exempt.

On July 2, the group The New Jersey Shore Rentals Coalition called for Murphy to “correct the Airbnb tax on personal bookings and provide instant tax relief to vacationers renting a shore home directly from a shore rental homeowner this summer.” The coalition is phrasing its call based on the probability that homeowners would pass the tax (totaling more than 11 percent) on to the vacationing renters of the transient accommodations.

Legislation A4814/S3851 unanimously passed both the N.J. Assembly and Senate in fast action “to correct the unintended consequences of the 2018 NJ Transient Tax which left vacationers paying over 11.625% tax on their vacation stays when renting a home directly from a homeowner,” said the coalition in a press release July 2.

The NJ Shore Rental Coalition, composed of homeowners who rent directly, has been the driving force behind correcting the law on the century-old family vacation tradition.

The coalition recognizes Assemblywoman Joann Downey and Sens. Vin Gopal, John McKeon and Bob Andrzejczak, who diligently worked with leadership in moving this bill through the Legislature.

The bill currently awaits Murphy’s signature to become law.

“Every day that passes with this tax imposed is less money for families to spend while now on vacation at the shore. ... The governor should not wait another moment. 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,” said Denise Payne, president of NJ Shore Rental Coalition.

The coalition invites those who want to reach out to the governor and ask that he immediately sign A4814 to call 609-292-6000 or go to constituent.relations@nj.gov. The coalition’s website is NJShoreTax.com. —M.S.

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