Homeowners who privately rent their homes for short periods of time — a common practice at the Jersey Shore — will be exempt from new state taxes if a bill passed unanimously by the Legislature is signed by the governor.
The measure passed the Assembly Thursday and the Senate last week.
The bill exempts property owners who do not use an online marketplace such as Airbnb from a 2018 law that extended New Jersey’s 6.625% sales and use tax and its 5% hotel and motel occupancy fee to short-term rentals.
Sponsors of the legislation included Assemblymen Vince Mazzeo and John Armato, both D-Atlantic; and Bruce Land and Matt Milam, both D-Cape May, Atlantic, Cumberland.
The 2018 law was an effort to level the playing field among hotels, motels and online rental services like Airbnb and VRBO.
The legislation (A-4814/4520) would require that short-term rentals only be subject to taxes if the rental is obtained through a marketplace, online or other type.