More media reporting on the “rental tax”. It sounds like we are close. The first step is to get the Treasury Department (division of Taxation) to put out new “guidance” on the tax. I believe that enough legislators have gotten involved and have “asked” Treasury to change their interpretation. They refer to it as a clarification of the law….where the legislature says “here is what the law was intended to do”.
In an article posted today by NJ 101.5 Treasury Department spokeswoman Jennifer Sciortino had this to say about the law:
The goal of this policy change is to level the playing field statewide between existing hotels and motels and transient accommodations conducted through new online marketplaces. This law is not expected to apply to the vast majority of reported short-term shore rentals. We are in the process of reworking the guidance issued by Taxation to alleviate any confusion.
LBI’s local weekly The Sandpaper noted that State Sen. Robert W. Singer (R-30th), deputy minority leader, was quoted this week as saying the rule is “still under discussion.”
Channel 12 news also stated it was told by legislators the law might not go to enforcement because of backlash and vagueness surrounding it.
Sounds like a clarification is in the works. We won’t know until they publish new guidance, but it is a good sign. But that can’t be the end. Because this clarification and guidance isn’t “law” there is nothing stopping future administrations or Treasurers from issuing different guidance on the law and going back to the “everyone pays” interpretation. That’s why we are still pushing for new legislation to amend the law to permanently exempt short term rentals-by-owner from the tax.
Check back here for more updates coming soon (hopefully).