Point Pleasant Beach Airbnb Tax Went Uncollected In 2019

POINT PLEASANT BEACH – A municipal tax on Airbnbs went uncollected last year because the borough didn't comply with state guidelines, officials said.

The Borough Council approved a tax of 1.5 percent, but state officials later updated the law and said that the tax had to be 3 percent, according to Mayor Paul Kanitra.

Kanitra said the state unsuccessfully attempted to notify his predecessor, former Mayor Stephen Reid, about the update.

"The state reached out to our former mayor numerous times," Kanitra said. "Finally this year, with a new administration, they reached out to town hall again in January and we finally realized what had happened."

Reid told The Ocean Star that he had not heard from anyone.

The state law (A-1753) imposes the same taxes and fees that hotels and motels currently must pay to the state on "transient accommodations," or residences used as temporary lodging.

The law also imposes the following taxes and fees where applicable: the hotel occupancy fee, the Atlantic City luxury tax, the Atlantic City promotion fee, the Cape May County tourism sales tax, the Cape May County tourism assessment, the municipal occupancy tax, the sports and entertainment facility tax and the Meadowlands regional hotel use assessment.

"Our laws need to be updated to keep up with changes brought about by new technology," said Assemblywoman Annette Quijano, D-Union. "The fact that taxes are not paid for stays at locations rented through sites like Airbnb but are applied to stays in hotels is an unfair advantage that hurts the hospitality industry and takes funding away from municipalities for important programs. This bill levels the playing field and provides tax fairness for the entire hospitality industry in New Jersey."

"We can't allow rules to apply to one business but not another when they essentially provide the same service," said Assemblywoman Vainieri Huttle, D-Bergen. "Accommodations booked through sites like Airbnb are used like hotel rooms. They should be subject to the same obligation."