The Division of Taxation has doubled-down on their ridiculous interpretation of the NJ Tax law. When they pulled down their “guidance” publication on the Occupancy tax earlier this week we all assumed they were going to correct their mistaken interpretation of the law and exempt direct-from-owner rentals. Instead, they are attempting to close the “key exchange” loophole by claiming that in order to be exempt, all rentals must be leased through, paid through, and have the keys picked up from, a local Realtor.
While I have a hard time believing that would ever hold up to scrutiny considering the text of the law, we need to move forward. A “clarification” from the Division of Taxation would not have been a guarantee that we’d be exempt anyway as future administrations could have simply re-written it, and a permanent solution was already in the works. That was just plan A.
On to plan B.
Assemblyman DeAngelo has signed on as second prime sponsor with Assemblyman McKeon to Assembly Bill 4520 that was introduced yesterday to address this issue. The bill’s text has not yet been posted but it is titled: “Excludes Transient Accommodations in Shore Counties from various state and local taxes”. It is up to Assembly Speaker Coughlin to move the bill to an issue committee where the chairman will consider posting the bill.
More phone calls
What we need is more phone calls from all of you. WE NEED EVERYONE TO CALL Speaker Coughlin and to express support for bill A-4520!
Please, pick up the phone on Monday and CALL his office. Phone calls are by far the most effective means of expressing yourself to elected officials. If you are unable to call, send an email personally, rather than through a submission form, but a call goes much further.
Tell Speaker Coughlin that you support this bill and ask him to move it to committee.
Here is his contact info:
Assemblyman Craig J. Coughlin (D)
569 Rahway Avenue
Woodbridge, NJ 07095-3480
Spread the Word
Finally….please SHARE THIS MESSAGE with anyone you know, especially if they are NJ Residents. Ask them to call. This isn’t just about saving money on a rental, it is about supporting the Jersey Shore. Every dollar that goes to this tax is a dollar that otherwise would have been spent at a local business. This is the last thing the shore needs as we continue to recover from Sandy.