Legislators of Both Parties Present Views on ‘Airbnb Tax’

Below are opposing releases from state Republican and Democratic legislators regarding the so-called “Airbnb tax.”
REPUBLICANS
GOP efforts to fix Airbnb tax voted down by Democrats as summer tourism season begins
TRENTON– Ahead of the Memorial Day weekend and the unofficial start to summer, Assemblyman Hal Wirths and Assemblywoman Serena DiMaso fought to protect consumers and the tourism industry from the so-called “Airbnb tax.” Last July, Gov. Murphy and the Democrat-controlled legislature passed a law that applied an 11.6 surcharge on short-term rentals not booked through a real estate agency.
The Assembly voted on legislation yesterday to limit the scope of the Airbnb tax to rentals obtained through a marketplace, but Wirths and DiMaso say it doesn’t go far enough. The tourism industry is starting to feel the consequences of the tax as short-term rentals at the Jersey Shore struggle and vacationers choose less expensive destinations.
“New Jersey is one of the most expensive places, if not the most expensive place, to rent a house through a marketplace,” stated Wirths (R-Sussex). “By leaving the marketplace at full tax, it’s going to have a negative impact on the entire state of New Jersey from Cape May to Sussex County. This is a supplement income for people to offset their extremely high property taxes.”
Wirths’ plea to eliminate the tax entirely on the floor of the Assembly was voted down 44-28.
“In Monmouth County alone, tourism is a $2.5 billion business employing more than 30,000 residents. In 2018, we had 8.6 million visitors,” said DiMaso (R-Monmouth). “Services such as Airbnb have the potential to draw more visitors to the Jersey Shore and the additional tax can only hurt our residents who took a risk and made an investment on rental property.”
DiMaso urged legislators to exempt the Jersey Shore communities, including Monmouth, Ocean, Atlantic, and Cape May counties, from the tax. Her amendments were rejected 46-26.
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DEMOCRATS
Land, Milam Bill to Protect Shore Homeowners from Short Term Rental Tax Passes Full Assembly
VINELAND – A measure approved by the full Assembly May 23 aims to ensure private homeowners – particularly at the Jersey Shore – will not be subject to a 2018 law that extended New Jersey’s sales and occupancy tax to short term rentals. The bill passed 77-0.
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 legislation (A-4814/4520) would require that transient accommodations only be subject to taxes if the rental is obtained through a marketplace, online or otherwise.
Assembly Democrats Bruce Land and Matt Milam (both D-1st) co-sponsored the measure. The Assemblymen issued the following statements May 24 heading into Memorial Day Weekend:
Land: “Jersey Shore homeowners – many of whom are still recovering from Hurricane Sandy – are worried they’ll see far less summer guests this season as a result of the short term rental tax. 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. Passage of our legislation is great news for Jersey Shore homeowners in Cape May, Atlantic and Cumberland counties.”
Milam: “The legislation approved Thursday will greatly help property owners keep their rentals booked through the summer. It will also help shore businesses keep customers flocking to their doors. With summer quickly approaching, the Legislature will continue to do everything possible to make sure the 2019 Jersey Shore tourism season is the best yet.”