Owners, what does this mean for you?
The new NJ Occupancy and Sales Tax, known as the “NJ Shore Tax” was implemented in October 2018. This tax is a total of 11.625%, charged to the tenant when booking a rental directly through an owner. A homeowner must collect these taxes, pay and file with the State on a monthly basis and do a reconciliation quarterly. It is believed this will impact the Jersey Shore rental market. Renters may choose less expensive destinations or if they come to LBI they may decide to limit their discretionary spending while on LBI. This will have an impact on all shore businesses. It seem highly unlikely the current administration in Trenton will give up the large windfall these new taxes will bring to them. For more details on the Bill click here. For an easier to digest version, here is a write up from an accountant.
If you do not want to be bothered by this, we offer 2 options:
- Choose your tenants and we are your admin for 5%, Seashell Level
- We handle all aspects for 10-12%, Sand Dollar and Seahorse Level respectively
You can learn more about both of these options here.
If you have questions, feel free to email me at SamOnLBI@gmail.com or call the office at 609-494-1130 and ask for Sam.
There is a grassroots organization that is trying to get the tax repealed, but it seems highly unlikely the current administration in Trenton will give up the large windfall these new taxes will bring to them.
Tenants, what does this mean for you?
As of now, for the summer of 2019, if you rent direct through an owner, you will have to pay an additional tax (unless the owner is going to cover it). If you rent through an agency, you do not have to pay the additional tax. What will happen next year? I do not know.
My main concern is that people are not aware that a rental through an agency is exempt from the tax and that we will have a sharp decline in all rentals this summer which will hurt EVERY business here on LBI.
If you are still looking for a rental, fill out the form below and I can send you some rental options.