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’