New Tax on Short Terms Property Rentals Threatens Shore Communities

An Article By; Scott P. Borsack, Esq.  While most of us were distracted by the potential for a New Jersey government shutdown over Governor Murphy’s demand for revisions to the so-called millionaire’s tax this past fall, one tax provision found its way into the compromise legislation without much attention. Dubbed the “Airbnb” tax, the New Jersey legislature has adopted a tax of 11.6 percent of the fee paid for rentals of less than 14 days completed without a realtor. The tax applies to rentals statewide but its likely impact will be greatest felt in the shore…