New Jersey: New Hotel Use Assessment in the Meadowlands
- Mar 5, 2015 | Gail Cole
A new hotel use assessment takes effect in the Meadowlands District of New Jersey, effective March 1, 2015. The new tax is the result of the passage of Assembly Bill 3969, summarized as the Hackensack Meadowlands Agency Consolidation Act, the Hackensack Meadowlands Transportation Planning District Act of 2014, and the New Jersey Meadowlands Tax Relief Act.
The 3% tax is imposed on “the rent for the occupancy of every room in every hotel located in the Meadowlands district, including any hotels located on land owned by the State.” The tax is in addition to other local taxes, including sales tax and the state hotel tax. It must be remitted to the Division of Taxation “not later than the 10th day of each month based on the occupancy of rooms in that hotel during the previous calendar month.”
The hotel use assessment is expected to generate between $6.9 million and $10.3 million annually for participating municipalities, which include Jersey City, Ridgefield and Rutherford. This should relieve the tax burden of area businesses and residents.
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