TRENTON, N.J. — New Jersey vacation rentals booked through online services such as Airbnb would be subject to the same state and local occupancy taxes as hotel and motel rooms under a bill introduced in state Assembly.
Assemblywomen Valerie Vainieri Huttle and Annette Quijano, both Democrats, have co-sponsored the measure, which would impose on such rentals a 7 percent sales tax, a 5 percent occupancy fee and up to a 6 percent municipal occupancy tax — the same as what is imposed on motels and hotels.
“This is all about fairness,” Quijano said in a statement. “There is nothing fair about one company having to pay certain fees while another one that provides essentially the same service is exempt.”
Airbnb could not be reached for comment.
On its website, Airbnb tells people renting out property that such rentals can be subject to occupancy tax and that “the obligation to remit the taxes to the government usually falls on the host.”
The Assembly measure, introduced Monday, is the legislature’s latest attempt to regulate the so-called sharing economy services provided by individuals through online services and mobile phone applications.
Lawmakers have been trying for nearly two years to come up with regulations on ride-hailing services such as Uber and Lyft.
This latest proposal comes after Airbnb officials reached agreements with officials in Jersey City and Newark that allow residents to rent out their homes through the online service while imposing a 6 percent municipal occupancy tax.
Jersey City was the first city in New Jersey to enact such a law, late last year. Newark approved a similar law earlier this year.
Jersey City Mayor Steve Fulop said Tuesday that in the first six months after the law went into effect, the city took in about $450,000 in additional hotel tax revenue.
On any given day, Fulop said there are about 400 Jersey City locations available on Airbnb.
“It’s essentially as if we created a whole new large hotel without construction,” he said.
Huttle cited the Jersey City and Newark agreements as part of the reason to create a statewide standard.
