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NEW JERSEY STATUTE DEFINITION WHAT IS A HOTEL NJ Realtors Report Negative Impact of Taxing Tourists
Other States Seasonal Rental Tax NJ #1 Tax Increasing State in the Nation, Again STATE TAKING BACK TOURISM PROMOTION DOLLARS GOVERNOR TO RAISE TAXES EVEN HIGHER A NEW TAX MUNICIPAL PARKING FEES
MOTEL CRISIS POINT PLEASANT BEACH NJ State Of NJ Div. of Taxation Investigates Seasonal Rental Owners 03/20/05 COMPLIANCE AND COLLECTION UNDERWAY NJ League of Municipalities Targets Seasonal Rental Homes, Condo's for Taxation
12/5/04 Increase taxes including occupancy taxes
TOURISM FAILURE Jersey Shore Links
Avon Belmar Bradley Beach Cape May Point Pleasant Bch
Seaside Heights Spring Lake Long Beach Island Southern Ocean Chamber of Commerce
Manasquan Wildwood
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HOTEL HOMES (aka, Seasonal Rentals)
It was clearly the wrong time to reduce the hotel tax, having said that it is also the right time to level the playing field between seasonal rentals who are operated in large part as one big hotel, just check out ward realty site at the following link, http://www.ward-realty.com/index.php?s=rentals&a=results&city=Point+Pleasant+Beach&type=&period=&pets=&number=&occupancy=&bedrooms=0&bathrooms=0&halfbaths=0 Other examples of homes offered for rent weekly at http://njhoteltax.com/njra_report.htm. The term seasonal rental was never a mistaken term; it was used to describe a rental which encompassed the entire season, Memorial Day to Labor Day. This period exceeds 90 days which is the state of NJ time period outside of which taxes do not have to be collected. This 90 day exception includes Motels and Hotels who rent for the entire season. Hotels and Motels renting out units as “Seasonal Rentals” (in excess of 90 days), do not collect sales, lodging or municipal tax. The “Seasonal Rental” term no longer accurately describes a home offered for rent weekly, weekends and many cases daily. Many of the Hotel Homes, as I think they should now be called rent to multiple individuals who divide up the cost as is the case in several located on Arnold Ave. between 17 unrelated young individuals who park a dozen cars along the streets and over the property and leave behind 30 plus bags of garbage days before pickup. Can you in all honesty maintain that Hotel home (aka, “Seasonal Rentals”), should not be defined as a business. Other states recognize homes and condos as hotel operations and apply the state resort taxes to them; you can find many of the links to these states by clicking on this link http://njhoteltax.com/seasonal_rentals.htm
The 100 Million generated by a fairly applied 7% tax to Hotel Homes (aka, Seasonal Rentals) is a number derived from the combined number of homes in all the counties along the Jersey Shore. The $250, 000 locally is a conservative number based on very low weekly rates published in a report commissioned by the New Jersey Association of Realtors. We utilized those numbers in an effort to stay away from any dispute over the accuracy of our projections however for this conversation I would estimate that the revenue for the beach would be much closer to $450,000.00. The link to the NJAR study follows; http://njhoteltax.com/Reports/Seasonal_Rental_Report.pdf I also think some clarification is necessary regarding perceptions that the Motel, Hotel operations in Point Pleasant Beach is seeing full occupancy. The statistics and the truth is that rates have dropped in an effort to attract overnight customers and occupancy some 30%. The loss in business in partly attributable to the economy however in large part a product of the shift and increase in the number of day trippers and the reluctance of families wanting to be surround by the masses of day trippers while staying overnight in a Hotel.
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