Some property renters no longer need to fret about New Jersey’s ‘Airbnb Tax’ while soaking up the sun at the Jersey Shore anymore! Since New Jersey implemented its new tax that impacted all short-term rentals last October, Governor Phil Murphy has signed a bipartisan bill to undo part of this major ‘Airbnb Tax.’ Here’s who is no longer affected…
As mentioned in our previous blog detailing the ‘Airbnb Tax’ that adds a huge 11.6% tax on short-term rentals, this new bill takes a weight off many shore renters’ shoulders. Previously, this new tax was on any short-term rental of less than 90 days. The only exception was if the property was listed with a real estate agent or broker licensed by the state Real Estate Commission.
Now, if the shore renter manages their rentals themselves, they will no longer be responsible for the tax. This means they can obtain their rentals through personal recommendations, ads in the newspaper or yard signs, for example, and not be liable for this tax. The ‘Airbnb Tax’ will still apply to short-term rentals through other transient accommodations, like Airbnb, to mirror the law’s original intent of leveling the playing field between online booking sites and brick-and-mortar businesses.
All in all, many people will be pleased. We hope some can enjoy the waning days of sun and sand. The Tax Warriors® at Drucker & Scaccetti hope you can get in one more weekend down the shore without the extra costs of the ‘Airbnb Tax’ before the summer is over!