New Jersey Shore Rental Transient Tax
NJ Imposes Taxes on Transient Accommodations
NJ enacted new legislation on July 1, 2018 that imposes a fee on transient accommodations on or after October 1, 2018. The new law imposes Sales Tax, the State Occupancy Fee, and the Meadowlands Regional Hotel Use Assessment on charges associated with the rental of transient accommodations.
Transient accommodation is defined as a room, group of rooms, or other living or sleeping space for the lodging of occupants, including but not limited to residences or buildings used as residences. The definition includes rentals made through “transient space marketplaces” and rentals that are made directly by the homeowner through classified listing sites, local newspaper ads, referrals from friends and family, or placing a sign on the lawn. Transient space marketplaces (e.g., Airbnb, VRBO, etc.) are online marketplaces through which a person may offer transient accommodations or hotel rooms to individuals.
Excluded from the definition of taxable transient accommodations are rentals of property executed by a licensed NJ real estate broker and access to the rental property is obtained by a key held by the licensed broker.
As with any tax legislation, there are exclusions, exceptions and exceptions to the exceptions. To learn more about the rules regarding this new tax, read NJ TB-81R bulletin.
Tax Planning Tip: If you plan to rent your NJ shore home yourself (and not use a NJ licensed real estate broker or transient space marketplace provider, you will be subject to this transient accommodation tax and need to consider that when establishing your rental rates and tax filing requirements.
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About F. Bryan Haarlander, EA, CTRS:
Bryan Haarlander is an IRS licensed Enrolled Agent and who owns and operates a specialized tax services firm serving clients in the western suburbs of Philadelphia, PA, which includes the cities of Chester Springs, Coatesville, Collegeville, Devon, Downingtown, Exton, Frazer, King of Prussia, Paoli, Philadelphia, Phoenixville, Pottstown, Radnor, Reading, Wayne, West Chester in Berks, Chester, Delaware, Montgomery and Philadelphia Counties, as well as clients in Delaware, New Jersey, New York and throughout the continental USA.
A Certified Tax Resolution Specialist, Bryan is well-known for his IRS tax resolution expertise and his book How to Resolve Your IRS Tax Debt Problems.
