Andrzejczak, Land, Milam Bill to Exempt Private Short-Term Rentals from Added Taxes Becomes Law

TRENTON -Legislation sponsored by Sen. Robert “Bob” Andrzejczak, Assemblyman Bruce Land and Assemblyman Matthew Milam, (all D-1st) that would make transient accommodation taxes and fees only applicable if rented through a marketplace, was signed into law Aug. 9.
 According to a release, “The law was originally intended to apply to major commercial companies such as Airbnb but it ended up hurting private renters up and down the shore,” stated Andrzejczak. “Folks that have been renting their shore homes to the same families for years aren’t doing it to make a fortune but more so to offset the cost of home ownership. The original law was never meant to hurt independent renters and luckily this legislation will correct things so that it no longer does. I am grateful Gov. Murphy saw the value in this and took action on the bill.”
Under the law, a transient accommodation will only be subject to taxes and fees if the rental is obtained through a marketplace.
A transient space marketplace is defined as a marketplace or travel agency that offers short term rentals and also provides a means for reserving and paying for the rental – such as online marketplaces like Airbnb and VRBO.
“Jersey Shore homeowners – many of whom are still recovering from Hurricane Sandy – have been worried they’ll see far fewer summer guests this season as a result of the short term rental tax,” stated Land. “Summer tourism is the heartbeat of the shore, and this law was never intended to hurt the private homeowners who help it grow and thrive. The signing of our legislation is great news for Jersey Shore homeowners in Cape May, Atlantic and Cumberland counties.”
“The legislation approved today will greatly help property owners keep their rentals booked through the rest of the summer and into the fall,” stated Milam. “It will also help shore businesses keep customers flocking to their doors. This tax was costing vacationers several hundred dollars, money that could have otherwise been spent on a night out to dinner or at the boardwalk or on a fishing trip. This will put that money back into our local economy rather than sending it to Trenton.”