Proposed Hotel Tax Would Fund Fire Departments In NJ Cities Like Newark

NEWARK, NJ — A proposed state law that would fund fire departments in large cities like Newark by adding an extra tax on hotels has made its way to the desk of Gov. Phil Murphy.

According to its sponsors – Sen. Teresa Ruiz and Assemblywoman Eliana Pintor Marin – the bill was crafted with New Jersey’s largest city specifically in mind.

Here’s how it would work if it gets a signature from Murphy, the Democratic lawmakers said:

“The bill, S-4475, imposes a daily, $3 per room surcharge on the occupancy of a room in a municipality classified as a first-class city and in which an international airport is located. Under New Jersey statute, a ‘city of the first class’ is defined as a municipality with more than 150,000 residents.”

Newark is currently the only first-class city with an international airport in the state, Ruiz and Pintor Marin noted.

Here’s where the money would go, the lawmakers said:

“The bill requires the Director of the Division of Taxation to collect the surcharge and deposit all surcharge revenues into a dedicated fire service trust fund. Surcharge revenues would be remitted to the municipality monthly, and revenues could be expended to support the hiring, retention, and training of fire service employees, the acquisition of fire service equipment, and the undertaking of capital improvements that would improve the municipality’s fire service capabilities.”

The state Office of Legislative Services estimates that the bill will result in a local revenue increase for Newark of $960,000 to $1.1 million in calendar year 2025 and a revenue increase of $2.9 million to $3.4 million in calendar years 2026 and 2027.

The bill – S-4475/A-5688 – passed votes in the New Jersey Senate and Assembly on June 30.

“As New Jersey’s largest city and a national gateway that is home to one of the country’s busiest airports, a major port, and the intersection of our two statewide highways, it’s critical that Newark’s firefighters have the equipment, staffing, and training they need to protect themselves, our communities, and the millions of visitors who pass through our area each year,” Ruiz and Pintor Marin said in a joint statement.

“This funding will strengthen Newark’s ability to respond effectively to emergencies, save lives, and meet the increasing needs of a growing city that serves as a vital economic and cultural hub for greater New Jersey,” the lawmakers said.

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