6
12/2019
Transitional Rule - On and After October 1, 2018 to August 8, 2019
Sales Tax, the State Occupancy Fee, and the Meadowlands Regional Hotel Use
Assessment, if applicable, are to be charged on the rental of any transient accommodation
(including all direct rentals by the owner and all rentals that were not solely consummated
through a transient space marketplace) occurring on and after October 1, 2018, until
August 8, 2019, regardless of any prior lease, contract, or other rental agreement. If a
rental starts prior to October 1, 2018, and ends after October 1, 2018, but before August
8, 2019, the applicable taxes, fees, and assessments must be charged based on the
number of days falling in the taxable period.
Example: Renter rents a vacation home from September 28, 2018, to October 4, 2018, for
$2,100. Since part of the rental takes place after October 1, 2018, Sales Tax and the State
Occupancy Fee must be collected based on the number of days falling in the taxable
period ($2,100/7 = $300 x 4 days = $1,200)*. The invoice, bill, or other receipt issued to
Renter states:
Weekly Rental $2,100
Sales Tax ($1,200* x 6.625%) $79.50
State Occupancy Fee ($1,200* x 5%) $60
Total $2,239.50
The same concept applies in Atlantic City, Millville, Wildwood, Wildwood Crest, North
Wildwood, or any other municipality which amends or adopts an ordinance that imposes
the Municipal Occupancy Tax, Sports and Entertainment Facility Tax - Millville, Atlantic
City Luxury Tax, the Atlantic City Promotion Fee, or the Cape May County Tourism Tax and
Assessment on the rental of transient accommodations (see below for information
regarding each of these municipal taxes, assessments, and fees).
Transitional Rule - On and After August 9, 2019, for Rentals that are not Obtained
Through a Transient Space Marketplace or is not a Professionally Managed Unit
On and after August 9, 2019, taxes, assessments, and fees are not due if the rental is not
obtained through a transient space marketplace or if it is not a professionally managed
unit. If such a rental starts prior to August 9, 2019, and ends on or after August 9, 2019,
the applicable taxes, assessments, and fees must be charged based on the number of days
falling in the taxable period.
State and Local Taxes, Fees, and Assessments that may Apply to the Rental of
Transient Accommodations
All rentals of transient accommodations obtained through a transient space marketplace
or that is a professionally managed unit are subject to Sales Tax and the State Occupancy
Fee. Additional taxes, fees, or assessments may also apply, depending on the location of
the transient accommodation.