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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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THIS PAGE CONTAINS LEGAL ISSUES AND RESEARCH SUPPORTING THE PROPOSITION THAT THE TAX APPLIES TO HOME OWNERS, REALTORS AND ANYONE WHO RECEIVES PAYMENT FOR PROVIDING ACCOMMODATIONS FOR LESS THAN 90 CONTINUOUS DAYS.
INSTRUCTIONS FOR NEW JERSEY HOTEL AND MOTEL STATE OCCUPANCY FEE AND MUNICIPAL OCCUPANCY TAX RETURN This return is to be used to report the state occupancy fee and municipal occupancy tax due as per P.L 2003, c. 104. http://199.20.64.195/treasury/taxation/pdf/other_forms/hm100.pdf A hotel/motel is a building regularly used and kept open for the lodging of guests, including bed and breakfasts, inns, etc. The State Occupancy Fee is imposed on the room rentals that are currently subject to the New Jersey sales tax (7% as of July 15, 2006) and is in addition to the sales tax. (Key term "Building or portion of it") (no reference whatsoever to licensed facilities or properties pursuant to the department of community affairs designation)
http://www.state.nj.us/dca/codes/lt/pdf/t_i_r.pdf Pg 28 Causes for Eviction The New Jersey Eviction Act applies to all residential rental properties, including mobile homes, and land in a mobile home park, except owner-occupied two- or three-family dwellings, hotels, motels, and other dwellings housing transient or seasonal tenants. Permanently occupied units held in trust on behalf of a developmentally disabled immediate family member are also exempt.(86) The Rooming and Boarding House regulations adopted by the Department of Community Affairs make it applicable to rooming and boarding houses as well and also provide that notice for residents of those buildings must be given to the county welfare board three (3) days before an eviction action ( Key term transient and Seasonal applies equally to motels and OTHER DWELLINGS equally)
INSTRUCTIONS FOR NEW JERSEY HOTEL AND MOTEL STATE OCCUPANCY FEE AND MUNICIPAL OCCUPANCY TAX RETURN This return is to be used to report the state occupancy fee and municipal occupancy tax due as per P.L 2003, c. 104. http://199.20.64.195/treasury/taxation/pdf/other_forms/hm100.pdf
A hotel/motel is a building regularly used and kept open for the lodging of guests, including bed and breakfasts, inns, etc. The State Occupancy Fee is imposed on the room rentals that are currently subject to the New Jersey sales tax (7% as of July 15, 2006) and is in addition to the sales tax. (Key term "Building or portion of it") (no reference whatsoever to licensed facilities or properties pursuant to the department of community affairs designation)
OTHER JURISDICTIONS CLEARLY INCLUDE HOME, CONDO AND OTHER SO CALLED "SEASONAL RENTALS UNDER THE TAX LAWS" EXAMPLES BELOW http://dor.wa.gov/docs/pubs/industspecific/homerentals.pdf Washington state: Many property owners are not aware that they may be required by law to collect and remit retail sales tax, and possibly other lodging taxes, if they rent out their homes for periods of less than 30 days. Such short term rentals are referred to as transient rentals. This fact sheet contains important information for persons who rent out their personal homes, including condominiums and time share units, located in Washington
FLORIDA http://dor.myflorida.com/dor/taxes/res_real_property.html
Sales and Use Tax on Rental of Living or Sleeping Accommodations What landlords and innkeepers need to know.
What is Taxable?
Sales tax is due at the rate of 6 percent on charges or room rates paid in exchange for the right to use or occupy living or sleeping accommodations. Florida law refers to these living or sleeping accommodations as "transient accommodations." Persons who rent or lease any of the following types of transient accommodations must collect sales tax and remit it to the Department of Revenue:
http://www.revenue.state.co.us/fyi/html/sales11.html Colorado Department of Revenue, Taxpayer Service DivisionFYI Sales 11Taxes Due On Unit Rentals of Hotels, Motels, Bed-and-Breakfasts, Condominiums & Time Shares (Revised 03/06) NOTE: All links to Department of Revenue (DOR) forms referenced in this document require you to have the free Adobe Acrobat Reader software. FYI tax publications referenced in this FYI have a direct link Web page link to them. GENERAL INFORMATION This FYI contains sales tax information for owners and managers of units rented for less than 30 consecutive days. This includes hotels, motels, bed-and-breakfast inns, condominiums, campsites, and time shares of any lodging unit. If you own short-term lodging units, any rental of a unit for less than 30 consecutive days is taxable and you are required to collect and remit sales tax. [§39-26-104 (1) (f) and 39-26-102 (11) C.R.S.] If a lodging owner or a management company sells rooms to an out-of-state travel agency, sales tax is due from the local owner or manager even if the out-of-state travel agency is reselling some or all of the rooms to the user or to another travel agency. The 30-day rental rule applies to any customer who pays for the room, as long as the customer is not a broker or travel agent who is reimbursed by the occupant. Example: If a company rents a room for 30 consecutive days, but four different people from that company stay in the room, each at different times within the 30 days, the room charges are non-taxable because one entity rented the room. The Department of Revenue policy is not to restrict the 30-day rental to an individual or the same room, but to 30 consecutive days of paid use by any single payor or customer.
Lake of the Ozarks House Rental ~ Lakefront Vacation Rental http://www.vrbo.com/56214 (Missouri, USA) Accommodations: House - 4 Bedrooms + Convertible bed(s) - 3 Baths - (Sleeps 10-14) All Reservations subject to a 10.225% Occ./Sales Tax & $90 Cleaning fee 50% Deposit due upon reservation
http://www.maine.gov/revenue/salesuse/Casualrentals.pdf
STATE OF MAINE MAINE REVENUE SERVICES 24 STATE HOUSE STATION AUGUSTA, MAINE 04333-0024
JOHN ELIAS BALDACCI GOVERNOR
JEROME D. GERARD ACTING EXECUTIVE DIRECTOR
Law Change Effective July 1, 2005 Casual Rentals of Living Quarters subject to 7% Sales Tax A person who owns a house, cottage, condominium unit, vacation home, camp or any other place kept, used, maintained, advertised or held out to the public as a place where living quarters are offered for rent to transient guests or tenants is required to register with MRS and collect and remit sales tax on such rentals at the rate of 7% beginning July 1, 2005. A person does not need to register nor collect tax if total rentals are for fewer than 15 days each calendar year
TITLE : TITLE 54 TAXATION
54:32B-2. Definitions.
(j) Hotel means a building or portion of it which is regularly used and kept open as such for the lodging of guests. The term ~hotel~ includes an apartment hotel, a motel, boarding house or club, whether or not meals are served. (k) ~Occupancy~ means the use or possession or the right to the use or possession, of any room in a hotel. (l) ~Occupant~ means a person who, for a consideration, uses, possesses, or has the right to use or possess, any room in a hotel under any lease, concession, permit, right of access, license to use or other agreement, or otherwise. (m) ~Permanent resident~ means any occupant of any room or rooms in a hotel for at least 90 consecutive days shall be considered a permanent resident with regard to the period of such occupancy. (n) ~Room~ means any room or rooms of any kind in any part or portion of a hotel, which is available for or let out for any purpose other than a place of assembly. (o) ~Admission charge~ means the amount paid for admission, including any service charge and any charge for entertainment or amusement or for the use of facilities therefor. (p) ~Amusement charge~ means any admission charge, dues or charge of roof garden, cabaret or other similar place. (q) ~Charge of a roof garden, cabaret or other similar place~ means any charge made for admission, refreshment, service, or merchandise at a roof garden, cabaret or other similar place. (r) ~Dramatic or musical arts admission charge~ means any admission charge paid for admission to a theater, opera house, concert hall or other hall or place of assembly for a live, dramatic, choreographic or musical performance. (s) ~Lessor~ means any person who is the owner, licensee, or lessee of any premises or tangible personal property which the person leases, subleases, or grants a license to use to other persons. (t) ~Place of amusement~ means any place where any facilities for entertainment, amusement, or sports are provided. (u) ~Casual sale~ means an isolated or occasional sale of an item of tangible personal property by a person who is not regularly engaged in the business of making retail sales of such property where the item was obtained by the person making the sale, through purchase or otherwise, for the person@s own use. (v) ~Motor vehicle~ includes all vehicles propelled otherwise than by muscular power (excepting such vehicles as run only upon rails or tracks), trailers, semitrailers, house trailers, or any other type of vehicle drawn by a motor-driven vehicle, and motorcycles, designed for operation on the public highways. (w) ~Persons required to collect tax~ or ~persons required to collect any tax imposed by this act~ includes: every seller of tangible personal property or services; every recipient of amusement charges; every operator of a hotel; and every seller of telecommunications. Said terms shall also include any officer or employee of a corporation or of a dissolved corporation who as such officer or employee is under a duty to act for such corporation in complying with any requirement of this act and any member of a partnership. (x) ~Customer~ includes: every purchaser of tangible personal property or services; every patron paying or liable for the payment of any amusement charge; and every occupant of a room or rooms in a hotel. (y) ~Property and services the use of which is subject to tax~ includes: (1) all property sold to a person within the State, whether or not the sale is made within the State, the use of which property is subject to tax under section 6 or will become subject to tax when such property is received by or comes into the possession or control of such person within the State; (2) all services rendered to a person within the State, whether or not such services are performed within the State, upon tangible personal property the use of which is subject to tax under section 6 or will become subject to tax when such property is distributed within the State or is received by or comes into possession or control of such person within the State; (3) intrastate or interstate telecommunications sourced to this State pursuant to section 29 of P.L.2005, c.126 (C.54:32B-3.4); (4) (Deleted by amendment, P.L.1995, c.184); (5) energy sold, exchanged or delivered in this State for use in this State; (6) utility service sold, exchanged or delivered in this State for use in this State; (7) direct mail processing services in connection with direct mail distributed in this State; and (8) (Deleted by amendment, P.L.2005, c.126). (z) ~Director ~ means the Director of the Division of Taxation of the State Department of the Treasury, or any officer, employee or agency of the Division of Taxation in the Department of the Treasury duly authorized by the director (directly, or indirectly by one or more redelegations of authority) to perform the functions mentioned or described in this act. (aa) ~Lease or rental~ means any transfer of possession or control of tangible personal property for a fixed or indeterminate term for consideration. A ~lease or rental~ may include future options to purchase or extend. (1) ~Lease or rental~ does not include: (A) A transfer of possession or control of property under a security agreement or deferred payment plan that requires the transfer of title upon completion of the required payments; (B) A transfer of possession or control of property under an agreement that requires the transfer of title upon completion of required payments and payment of an option price does not exceed the greater of $100 or one percent of the total required payments; or (C) Providing tangible personal property along with an operator for a fixed or indeterminate period of time. A condition of this exclusion is that the operator is necessary for the equipment to perform as designed. For the purpose of this subparagraph, an operator must do more than maintain, inspect, or set-up the tangible personal property. (2) ~Lease or rental~ does include agreements covering motor vehicles and trailers where the amount of consideration may be increased or decreased by reference to the amount realized upon sale or disposition of the property as defined in 26 U.S.C. s.7701(h)(1). (3) The definition of ~lease or rental~ provided in this subsection shall be used for the purposes of this act regardless of whether a transaction is characterized as a lease or rental under generally accepted accounting principles, the federal Internal Revenue Code or other provisions of federal, state or local law. (bb) (Deleted by amendment, P.L.2005, c.126). (cc) ~Telecommunications~ means the act or privilege of originating or receiving messages or information through the use of any kind of one-way or two-way communication; including but not limited to voice, video, facsimile, teletypewriter, computer, mobile telecommunications service or any other type of communication; using electronic or electromagnetic methods, and all services and equipment provided in connection therewith or by means thereof. ~Telecommunications~ shall not include: (1) one-way radio or television broadcasting transmissions available universally to the general public without a fee; (2) purchases of telecommunications by a telecommunications provider for use as a component part of telecommunications provided to an ultimate retail consumer who (A) originates or terminates the taxable end-to-end communications or (B) pays charges exempt from taxation pursuant to paragraph (5) of this subsection; (3) services provided by a person, or by that person@s wholly owned subsidiary, not engaged in the business of rendering or offering telecommunications services to the public, for private and exclusive use within its organization, provided however, that ~telecommunications~ shall include the sale of telecommunications services attributable to the excess unused telecommunications capacity of that person to another; (4) charges in the nature of subscription fees paid by subscribers for cable television service; (5) charges subject to the local calling rate paid by inserting coins into a coin operated telecommunications device available to the public; and (6) purchases of telecommunications using a prepaid calling service. (dd) ~Interstate telecommunication~ means any telecommunication that originates or terminates inside this State, including international telecommunication. In the case of mobile telecommunications service, ~interstate telecommunication~ means any mobile telecommunications service that originates in one state and terminates in another state, territory, or foreign country that is provided to a customer with a place of primary use in this State. (ee) ~Intrastate telecommunication~ means any telecommunication that originates and terminates within this State. In the case of mobile telecommunications service, ~intrastate telecommunication~ means any mobile telecommunications service that originates and terminates within the same state that is provided to a customer with a place of primary use in this State. (ff) ~Natural gas~ means any gaseous fuel distributed through a pipeline system. (gg) ~Energy~ means natural gas or electricity. (hh) ~Utility service~ means the transportation or transmission of natural gas or electricity by means of mains, wires, lines or pipes, to users or customers. (ii) ~Self-generation unit~ means a facility located on the user@s property, or on property purchased or leased from the user by the person owning the self-generation unit and such property is contiguous to the user@s property, which generates electricity to be used only by that user on the user@s property and is not transported to the user over wires that cross a property line or public thoroughfare unless the property line or public thoroughfare merely bifurcates the user@s or self-generation unit owner@s otherwise contiguous property. (jj) ~Co-generation facility~ means a facility the primary purpose of which is the sequential production of electricity and steam or other forms of useful energy which are used for industrial or commercial heating or cooling purposes and which is designated by the Federal Energy Regulatory Commission, or its successor, as a ~qualifying facility~ pursuant to the provisions of the ~Public Utility Regulatory Policies Act of 1978,~ Pub.L.95-617. (kk) ~Non-utility~ means a company engaged in the sale, exchange or transfer of natural gas that was not subject to the provisions of P.L.1940, c.5 (C.54:30A-49 et seq.) prior to December 31, 1997. (ll) ~Pre-paid calling service~ means the right to purchase exclusively telecommunications services, that must be paid for in advance, that enables the origination of calls using an access number or authorization code, whether manually or electronically dialed; provided, that the remaining amount of units of service that have been pre-paid shall be known by the service provider on a continuous basis. (mm) ~Mobile telecommunications service~ means commercial mobile radio service, as defined in section 20.3 of title 47 of the Code of Federal Regulations as in effect on June 1, 1999. (nn) ~Place of primary use~ means the street address representative of where the customer@s use of the mobile telecommunications service primarily occurs, which shall be the residential street address or the primary business street address of the customer and within the licensed service area of the home service provider. For the purposes of determining the primary place of use, the terms used shall have the meanings provided pursuant to the federal ~Mobile Telecommunications Sourcing Act,@@ 4 U.S.C. s.124 (Pub.L.106-252). (oo) (1)~Sales price~ is the measure subject to sales tax and means the total amount of consideration, including cash, credit, property, and services, for which personal property or services are sold, leased, or rented, valued in money, whether received in money or otherwise, without any deduction for the following: (A) The seller@s cost of the property sold; (B) The cost of materials used, labor or service cost, interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller; (C) Charges by the seller for any services necessary to complete the sale; (D) Delivery charges, unless separately stated on the invoice, bill or similar document given to purchaser; (E) Installation charges; and (F) The value of exempt personal property given to the purchaser where taxable and exempt personal property have been bundled together and sold by the seller as a single product or piece of merchandise. (2) ~Sales price~ does not include: (A) Discounts, including cash, term, or coupons that are not reimbursed by a third party, that are allowed by a seller and taken by a purchaser on a sale; (B) Interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser; (C) Any taxes legally imposed directly on the consumer that are separately stated on the invoice, bill of sale, or similar document given to the purchaser; (D) The amount of sales price for which food stamps have been properly tendered in full or part payment pursuant to the federal Food Stamp Act of 1977, Pub.L. 95-113 (7 U.S.C. s.2011 et seq.); or (E) Credit for any trade-in of property of the same kind accepted in part payment and intended for resale if the amount is separately stated on the invoice, bill of sale, or similar document given to the purchaser. (pp) ~Purchase price~ means the measure subject to use tax and has the same meaning as ~sales price.~ (qq) ~Sales tax~ means the tax imposed on certain transactions pursuant to the provisions of the ~Sales and Use Tax Act,~ P.L.1966, c.30 (C.54:32B-1 et seq.). (rr) ~Delivery charges~ means charges by the seller for preparation and delivery to a location designated by the purchaser of personal property or services including, but not limited to, transportation, shipping, postage, handling, crating, and packing. If a shipment includes both exempt and taxable property, the seller should allocate the delivery charge by using: (1) a percentage based on the total sales price of the taxable property compared to the total sales price of all property in the shipment; or (2) a percentage based on the total weight of the taxable property compared to the total weight of all property in the shipment. (ss) ~Direct mail~ means printed material delivered or distributed by United States mail or other delivery service to a mass audience or to addresses on a mailing list provided by the purchaser or at the direction of the purchaser in cases in which the cost of the items are not billed directly to the recipients. ~Direct mail~ includes tangible personal property supplied directly or indirectly by the purchaser to the direct mail seller for inclusion in the package containing the printed material. ~Direct mail~ does not include multiple items of printed material delivered to a single address. (tt) ~Streamlined Sales and Use Tax Agreement~ means the agreement entered into as governed and authorized by the ~Uniform Sales and Use Tax Administration Act,~ P.L.2001, c.431 (C.54:32B-44 et seq.). (uu) ~Alcoholic beverages~ means beverages that are suitable for human consumption and contain one-half of one percent or more of alcohol by volume. L.1966,c.30,s.2; amended 1968, c.106, s.1; 1972, c.27, s.1; 1980, c.61, s.1; 1987, c.254; 1989, c.123, s.1; 1990, c.40, s.1; 1993, c.10, s.1; 1995, c.184, s.1; 1997, c.162, s.17; 1998, c.99, s.1; 1999, c.248, s.1; 2002, c.45, s.1; 2005, c.126, s.1. 54:32B-2.1. Filing of list of persons excluded from tax on telecommunications; required A person required to collect the tax imposed by subsection (f) of section 3 of P.L.1966, c.30 (C.54:32B-3) shall within 30 days of the operative date of this section, and annually as prescribed by the director thereafter, file with the director a list of the known names and addresses of persons that the person required to collect the tax provides telecommunications excluded from taxation pursuant to paragraph (2) of subsection (cc) of section 2 of P.L.1966, c.30 (C.54:32B-2). L.1990,c.40,s.8. THURSDAY, FEBRUARY 15, 2007 Share the tax: Tourism commission co-chair suggests By CHRISTOPHER SOUTH Cape May Star and Wave
City Council recently passed a resolution requesting the state legislature to amend the law to allow the room tax to be applied to seasonal and short term rentals of single-family homes. The city has been charging a 2-percent room tax on hotel, motels and guesthouses since July 1, 2004.
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