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Atlantic City Air BnB Rentals Now Getting Taxed, Realtors Still Exempt.

Atlantic City Air BnB. Short Term Rentals

New Jersey is finally taxing Airbnb. Most states, including Pennsylvania and New York, already tax these kinds of short-term rentals that are transacted online.

This could add 12% – 15% to the cost of an Airbnb rental. Hotels and motels already pay stuff like this.

What is Airbnb? It connects homeowners who want to rent out their space, with those looking for a place to stay. Kinda like what Uber does for driving.

Sound good so far….. but wait. Why is NJ taxing one set of rental providers, while giving others (real estate) a pass?

NJ Senators Chris Brown & Jeff Van Drew don’t want to tax Airbnb rentals.

Are Brown and Van Drew picking winners and losers in the NJ rental wars? This might explain why we’re seeing Van Drew TV ads paid for by NAR, the National Association of Realtors.

That pesky Realtor exemption.

Why tax one set of rental operators, while giving others a free pass?

Real estate brokers are still being protected. Not being taxed on approx 50% of all short term rentals in New Jersey.

  • Chris Brown defends against taxing Airbnb, thinks they need help to grow the market.
  • Jeff Van Drew believes Airbnb needs tax breaks to make tourism more competitive.

This past summer in South Jersey, those who rented their homes by leveraging Airbnb, made $30.6 million. That’s about 100% more than they made in the Summer 2017. The number of AirBnB renters exploded too. Almost doubled year-over-year, soaring to almost 140,000 renters.

Atlantic City Air BnB. Short Term Rentals

This year, the NJ State Legislature voted to tax Airbnb-style rentals. It also voted to place hotel and motel occupancy fees and other taxes and fees on so-called transient accommodations, Airbnb and other online short-term rental services.

‘I’m not sure how the real estate lobby got a carve out’

‘individual owners who rent are now on the hook to collect tax and occupancy fees from their tenants’

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  1. From Tom Bottley: Levels the playing field? Are you kidding me? You ignore the fact the rentals through realtors are exempt from this tax while homeowners who rent directly need to impose it. You need to reevaluate your assertions considering this offensive and discriminatory realtor exemption.
    Let’s talk about fairness and principle. Is it fair to exclude realtor rentals while taxing everyone else? Is the state giving preferential treatment to the realtors? Are they showing favoritism and picking winners? Damn right they are!
    Tax no one, or tax everyone…That would make sense.

  2. From: David Lasnick. For the purposes of discussion let us accept as truth of the statement that nearly all other states impose an occupancy tax on short term rentals. The elephant in the room, the thing not discussed in this editorial, was the finely crafted exemption to this tax provided to licensed real estate brokers. This is a section of the market I have heard represents 50% of all transient occupancy stays in the State. It puts a lie to all of the reasoning in this editorial justifying this tax if the legislature then goes and exempts 50% of the market from paying it. Could it be because real estate brokers used to control close to 100% of the market? I wonder. If the state legislature wants a level playing field then do it. Eliminate the real state broker exemption and see how long they can continue to justify their 12 or 13% commissions and outdated reservation systems.

  3. From Nancy Notaro: The realtor exemption. It simply isn’t fair to subject one set of providers to a set of taxes, fees and regulations while giving others who provide the same service a complete pass. It also would undermine the hospitality industry to give preferential treatment to one segment of it.”

  4. Disastrous for industry and local economy. Fewer visitors, less money to buy homes, less money to hire help, less money to repair homes… no point, just money grab

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