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Finally Governor Murphy Signs Legislation Easing Taxation on Shore Rentals


photo by ArtChick

Governor Waits till the second week in August to repeal new renters tax

the staff of the Ridgewood blog

Ridgewood NJ,  Governor Phil Murphy today signed legislation (A-4814) amending the transient accommodations law enacted last summer to provide relief for many shore renters by narrowing the scope of rentals that are subject to taxation. The administration conducted a thorough legal and technical review to ensure that the legislation, as written, was not only feasible to implement, but more closely mirrors the original intent, which was to create parity throughout the rental industry by extending the existing tax on hotels and motels to certain short-term rentals, such as those done through online marketplaces. “Our shore economy adds tremendous vitality and dynamism to New Jersey,” said Governor Murphy.

Too little too late?

Senator Declan O’Scanlon and Assemblywoman Serena DiMaso issued a statement following Governor Murphy’s announcement that he would repeal the misguided short-term rental tax:

“The Governor made the right call in repealing this short-term rental tax–and we acknowledge that–however it comes way too late,” said O’Scanlon. “We are in August at this point, summer is nearly over and most of the damage of this ill-conceived aspect of this tax has been done. The Governor and his policy folks need to recognize when something is emergent and do their homework up front, so they’re ready to take action the minute such bills land on his desk. This was a total failure of administrative planning and it likely, needlessly, cost the New Jersey economy millions of dollars.”

“While I applaud the Governor signing this bill, it’s been on his desk since June 27th, and it is now August 9th,” DiMaso continued. “Many families have already been deterred from renting down the shore, and the number who might do so in the next three weeks of summer surely cannot make up the amount of revenue lost this tourism season.”

“Tourism contributes $44 billion annually to the New Jersey economy, particularly tourism at the shore. Tying the hands of our local shore economies with this short-term rental tax was irresponsible and completely, easily avoidable. I praise the Governor for seeing the light on this issue, but that won’t bring back the millions that shore economies have lost this summer in potential revenue,” said O’Scanlon.

“I’m happy our voices were heard, it’s just unfortunate that the Governor didn’t elect to sign this repeal before he set off for his Italian vacation in July,” DiMaso concluded.

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