Citing the short-term rental tax enacted last year, shore homeowners and businesses say they’re bringing in less money at the height of the summer season.
Despite being steps from the shore during the summer season, some shore rentals sit unused and empty. The owners say a tax on short-term rentals that went into effect in 2018 is to blame. The tax adds a nearly 12% surcharge on all short-term rentals lasting less than 90 days and was originally designed to make reservations made through home-sharing platforms like Airbnb and VRBO subject to the same taxes as hotels and motels.
Begging for action, shore rental owners sent a letter this week urging Gov. Phil Murphy to a sign a bipartisan bill to tweak the bill’s language. They’ve railed against the law requesting an exemption, saying it’s drastically hurt their ability to rent and unfairly carved out the tax for real estate brokers. And there’s a trickle-down effect, say business owners. Vacant weekly rentals mean less money spent at local shops.
In this file photo, a summer rental sign is seen in front of a home just one block from the ocean, in Belmar, N.J. (Mel Evans/AP Photo, file)
New Jersey lawmakers are moving to exempt many Shore-goers from an unpopular new tax on home rentals, but it’s still unclear when the change would take effect — and who exactly it would help.
A vocal group of renters and owners has been pushing for the change since last year, when lawmakers worked with Gov. Phil Murphy, a Democrat, to create a nearly 12% tax on short-term rentals.
The law was intended to make accommodations booked through online marketplaces such as Airbnb subject to the same taxes as hotels and motels.
But the way the “Airbnb tax” was written, it applies to all rentals lasting less than 90 days not booked through a real estate broker, including Shore properties filled with the help of yard signs, classified ads, Facebook groups or personal connections.
The Assembly voted unanimously this week to approve a measure, A-4814, that would make the tax apply only to rentals arranged through marketplaces where bookings can be offered, reserved and paid.
That would spare renters who arrange their stays directly with property owners. The change would take effect immediately upon being signed into law by the governor, according to the bill.
But Sen. Vin Gopal, a Democrat from Monmouth County sponsoring a companion bill in the upper house, said he wants to amend the measure so the exemption applies more narrowly to owners with two or fewer units and their guests.
And under his bill, the change would not take effect “until the first day of the first calendar quarter beginning at least 60 days following the date of enactment” — meaning Oct. 1 at the earliest.
Asked which version would be the one eventually sent to the governor, Gopal said he didn’t know.
Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)
The public will hear from Orsted and PSEG representatives in a live-streamed meeting at 7 p.m. Monday, March 7, when officials will explain the project and their intention to utilize an area of Ocean City for an underground transmission line.
Each of the 99 wind turbines proposed in the project, called Ocean Wind, are roughly 900 feet tall and would stretch down the coast from Atlantic City to Stone Harbor about 15 miles offshore, passing by Ocean City in the process.
The company filed a petition on Feb. 2 with the state Board of Public Utilities to utilize an area of Ocean City to install a transmission line.
Cape May County and Ocean City officials told OCNJDaily.com on Feb. 3 that they are reviewing the petition.
The project is in the planning and permitting phase and is slated for completion by 2024.
On Monday, Cape May County Administrator Kevin Lare said, “The county will have representation on the hearing March 7.”
Lare noted that the county is “continuing internal, deliberative discussions among the Board of County Commissioners.”
Over the last couple of years since Orsted approached Ocean City about the transmission line, and hosted forums about the project in the resort, there have been opponents to the plan as well as proponents.
An audience listens to Orsted representatives during the last forum in Ocean City in November.
There have been concerns over what the project could mean for marine life, the fishing industry, and if there will be bird strikes due to the turbines. Additionally, there are concerns that the wind farms will negatively affect real estate values, seasonal rentals, the tourist industry, drive up taxes, and increase the region’s energy bills.
Rental sign in Belmar, a block from the beach. Mel Evans AP photo
Criticism from some Republican lawmakers met NJ Gov. Phil Murphy’s signing today of a bill to provide tax relief to Jersey shore home renters
By Frank Brill, EnviroPolitics Editor
New Jersey Governor Phil Murphy today signed into law (A4814) which seeks to provide relief for many shore homeowners who rent out their properties during the summer. It amends the transient accommodations law, enacted in 2018, to narrow the scope of rentals subject to taxation.
The bill was sent to the governor at the beginning of this summer vacation season. Numerous lawmakers representing shore towns have been urging him ever since to sign it.
In apparent anticipation of criticism over the time it took to act, a news release announcing the signing said:
“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.
Republican Senator Declan O’Scanlon of Monmouth County called the signing “way too late.”
“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.”
Assemblywoman Serena DiMaso, also a Republican, added this zinger: “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,”
Primary sponsors of the legislation include Democratic Assembly members Joann Downey, John McKeon, John Armato, Bruce Land, Wayne DeAngelo, Eric Houghtaling, Vincent Mazzeo, Nancy Pinkin, Matthew Milam, Valerie Vainieri Huttle, and Senators Vin Gopal and Bob Andrzejczak.
Their joint response was far more positive.
“Over the past several months, we’ve listened to Jersey Shore homeowners – many of whom are still recovering from Hurricane Sandy – who 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.”
“The bill signed into law today will help property owners who rely on word of mouth, signs, social media and longstanding customers to keep their rentals booked through the summer. It will help shore businesses keep customers flocking to their doors. And it will help tourists afford to have the vacation of their dreams right here at the Jersey Shore,” the sponsors continued.
Are you a Jersey shore property owner who rents during summers? What’s your opinion?Share it in the block below
