Update, July 24. On Friday, July 21st, Governor Christie vetoed this legislation.
Ask the Governor to Sign A-4587/S-2574, Transient Accommodations/Home Sharing
The League supports this bill which will extend the State sales and use tax and hotel and motel occupancy fee on transient accommodations; and, authorizes various municipal taxes and fees on transient accommodations.
The bill passed the General Assembly on May 22 by a vote of 45-29. It passed the State Senate on June 19 by a vote of 25-13. The Governor has until August 3, or the first Assembly quorum after that date, to act.
Why the League supports A-4587/S-2574:
- This is not a new tax, but rather the logical extension of the existing statutes. A-4587 provides tax parity in the accommodation marketplace by taking into account the sharing economies and appropriately provides additional revenues for municipalities.
- Transient accommodations are potentially receiving an unfair competitive advantage over traditional hotels and motels. When the current relevant statutes were adopted, the concept of a “sharing economy” was certainly not contemplated. In this new era of sharing economies, transient accommodations are becoming more commonplace, but are not subject to the same various sales and use taxes as hotels and motels.
- The increase in transient accommodations place administrative and enforcement burdens on municipalities. Any increase in revenue derived from the extension of the existing tax may offset the costs to municipalities and to property taxpayers.
- We are joined in support of this legislation by one of the major players in the industry, AirBnB.
What you can do?
Please contact the Governor’s office (609-292-6000 or by clicking here) and ask him to sign A-4587/S-2574 into law.
Contacts: Michael Cerra, Assistant Executive Director, email@example.com, 609-695-3481 x120.
Lori Buckelew, Senior Legislative Analyst, firstname.lastname@example.org, 609-695-3481 x112.