Point Pleasant Beach Approves Airbnb Tax

POINT PLEASANT BEACH – Point Pleasant Beach officials have approved a plan to impose a tax on airbnbs.

Point Pleasant Beach approved an ordinance last week that would impose a 1.5 percent tax to Airbnbs in the town.

The discussion came after state lawmakers approved legislation compelling owners who put their homes, or rooms, up for short-term rent to collect the state's 6.625 sales tax and 5 percent occupancy tax.

Under the new law, local towns also can also charge taxes of up to 3 percent.

"We exercised an option from the state after they implemented theirs. We were allowed to take 3 percent, but wanted to start at a lower percentage after listening to some homeowners who had concerns," said Councilman Paul Kanitra. "We'll be re-evaluating it after we see how it works this first summer."

The state law (A-1753) imposes the same taxes and fees that hotels and motels currently must pay to the state on "transient accommodations," or residences used as temporary lodging.

The law also imposes the following taxes and fees where applicable: the hotel occupancy fee, the Atlantic City luxury tax, the Atlantic City promotion fee, the Cape May County tourism sales tax, the Cape May County tourism assessment, the municipal occupancy tax, the sports and entertainment facility tax and the Meadowlands regional hotel use assessment.

"Our laws need to be updated to keep up with changes brought about by new technology," said Assemblywoman Annette Quijano, D-Union. "The fact that taxes are not paid for stays at locations rented through sites like Airbnb but are applied to stays in hotels is an unfair advantage that hurts the hospitality industry and takes funding away from municipalities for important programs. This bill levels the playing field and provides tax fairness for the entire hospitality industry in New Jersey."

"We can't allow rules to apply to one business but not another when they essentially provide the same service," said Assemblywoman Vainieri Huttle, D-Bergen. "Accommodations booked through sites like Airbnb are used like hotel rooms. They should be subject to the same obligation."

Under the Point Pleasant Beach plan, the "Hotel and Motel Room Occupancy Tax" would be fixed at a uniform percentage rate of 1.5 percent on charges of rent for every occupancy of a transient accommodation.