margate rental ventnor

Murphy Signs Law Protecting Shore Homeowners from Rental Tax

Private homeowners – particularly at the Jersey Shore – will not be subject to a 2018 law that placed extra taxes on short term rentals…. was signed into law today by Governor Phil Murphy.

margate rental ventnor
Rental Taxes

In an effort to level the playing field between hotels, motels and transient accommodations like Airbnb, a 2018 law expanded the State’s 6.625 percent sales and use tax and 5 percent hotel and motel occupancy fee to short-term rentals.

The law will require that transient accommodations only be subject to taxes if the rental is obtained through a marketplace, online or otherwise. ( AirBnb, VRBO, etc)

Sherri Lilienfeld of Apex Prime Realty, a leading real estate agency in Margate and Ventnor said: This is great news for those who rely on summer rental income.

Bill sponsors included Assembly Democrats John Armato and Vince Mazzeo.

From USNEWS: The tax would still apply to certain other short-term rentals, like those made through travel agencies or online marketplaces like Airbnb and VRBO. Under previous law, short-term rentals through online markets like Airbnb were subject to a tax of at least 11.625. But the tax also applied to property owners who rented through personal referrals and collected payments themselves. Under the new law, homeowners managing rentals directly won’t be subject to the tax.

NJ Governor Murphy Signs Law Protecting Downbeach Homeowners from Rental Tax

“The bill signed into law today will help property owners who rely on word of mouth, signs, social media and longstanding customers to keep their rentals booked through the summer. It will help shore businesses keep customers flocking to their doors. And it will help tourists afford to have the vacation of their dreams right here at the Jersey Shore.”

Airbnb law mandates that property owners who rent their homes on a short term basis, must collect NJ state 6.625 sales tax and 5 percent occupancy tax. Local municipalities can add 3% to that total.

Jersey Shore short-term rentals were socked with a 12% surcharge tax. Short-term rentals are less than 90 days.

Murphy kills controversial Shore rental tax.

New law: direct rentals from homeowner via local ads, personal referrals, or signage, will not be subject to the tax if the homeowner is directly collecting the rental payments.

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