Airbnb situation in NJ

[JerseyBoy]

This is primarily for innkeepers in NJ.
Recently 2 bills were proposed in the NJ legislature dealing with transient room rentals (i.e Airbnb type rentals).
Bill A4441: Requires licensing and regulation of space for accommodation of transient guests.
Bill A4587: Imposes State sales and use tax and hotel and motel occupancy fee on transient accommodations; authorizes various municipal taxes and fees on transient accommodations.
You can look up the complete text of each bill online. I would strongly urge any innkeepers in NJ to write to their representatives in support of these pieces of legislation. Both seem to level the playing field by way of requireing a degree of licensing and possible inspection and also by requiring that the appropriate taxes be paid.
Airbnb sent this out today:
Your voice matters and will help shape the future of home sharing
Hello xxxx,
This is an important moment for home sharing in New Jersey. Our community continues its strong growth, with over 6,100 hosts statewide welcoming 260,000 travelers to the Garden State in 2016. The typical host in the Garden State earns $6,200 a year sharing their home – a vital economic lifeline for many families struggling to pay their bills and make their mortgage.
However, a new bill (A4441) proposed in the State Legislature would make home sharing increasingly difficult in New Jersey by imposing a top-down, one-size-fits-all approach to home sharing, including a complex registration system and a cap on the number of nights that residents can share their own homes.
Email your Assemblymember and Senator NOW and tell them to vote NO on A4441.
Send Email
We need your help to defeat this ill-conceived bill and protect home sharing across New Jersey, from the Wildwoods to Wantage. Will you take a minute to email your Assemblymember and Senator today?
Sharing your own host story with legislators is the most powerful way to show how home sharing is transforming lives in the Garden State. Together, we will ensure that Airbnb continues to thrive throughout New Jersey.
Thank you for your support.
Sincerely,
The Airbnb Team

 

[GoodScout]

I love how their euphemism for a level playing field is "top-down, one-size-fits-all approach."
Mobilize, New Jersey innkeepers. Because your enemies sure are.
I do find it's interesting that they're fighting hard on laws to subject air rentals to the same inspections as us, but aren't mobilizing on the room taxes. Here in Vermont, they settled with the state and now collect them from bookers.

 

[JerseyBoy]

I love how their euphemism for a level playing field is "top-down, one-size-fits-all approach."
Mobilize, New Jersey innkeepers. Because your enemies sure are.
I do find it's interesting that they're fighting hard on laws to subject air rentals to the same inspections as us, but aren't mobilizing on the room taxes. Here in Vermont, they settled with the state and now collect them from bookers..

I'm wondering if they have figured out they will lose the tax battle and are just dealing with it. Having the properties licensed is a different animal and the way I read the legislation is it leaves the licensing somewhat open ended and gives each town some discretion. It more specifically though puts limits on how many days can be rented and may limit residences to only renting 1 room. This kind of legislation could set a difficult precedent for them and actually force them to be the company they keep saying they are.

 

[Lee2014]

Our neighbor asked us about air and what our experience has been. She works at another B&B in town that isn't on air. She says that the newspaper had a "cry story" from an air host how this isn't right to expect air places to be on the same page as B&Bs. (room tax, furniture tax, state tax, fire codes, fire inspection, etc, etc, etc.) In our town more and more B&Bs are joining air and air illegals are getting certified as guest houses, rentals, cottages etc. or leaving air.

 

[Morticia]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

 

[GoodScout]

Private air rentals are our biggest competitor - now taking more business than the inn next door. Had a long talk with our health inspector during our annual inspection (100s for both lodging and restaurant!). Inspectors *really* don't want to start inspecting Air rentals, because coordinating to meet people who may or may not be or live there would be a nightmare. Plus, they can barely handle the load they have now.
That said, once I started pointing out some of the health and safety dangers of a few of the rentals around me that I've seen online, he at least admitted something eventually would have to be done. But probably wouldn't until there was either a complaint or a major event that made the news.
Vermont's proposed changes to it inspection law would require licensing for any rental with 3 or more units. Our state association wants everyone inspected. I'm thinking 2 or more rooms may be the best compromise we can get.

 

[Aussie Innkeeper]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax..

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

Consider this, though...the first time the guest rents the room directly thru Air, and the tax is collected (by Air) and given to the state (supposedly). However, for subsequent return visits to the same Air property, the guest contacts the Air host directly and pays them directly, therefore completely skirting both Air and the tax. Don't let your state allow Air to police themselves!! Push for the requirement of licensing/zoning, etc. of the individual properties themselves!

 

[gillumhouse]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax..

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

Consider this, though...the first time the guest rents the room directly thru Air, and the tax is collected (by Air) and given to the state (supposedly). However, for subsequent return visits to the same Air property, the guest contacts the Air host directly and pays them directly, therefore completely skirting both Air and the tax. Don't let your state allow Air to police themselves!! Push for the requirement of licensing/zoning, etc. of the individual properties themselves!
.

this would be a tax nightmare for me. I pay B & O (Business & Occupation) tax to my City. until July 1 it is 50 cents on $100 GROSS revenue. In July it will $1 per $100. I also pay the State 6% Sales Tax on my revenue. Now, IF AIR was collecting (and we hope actually remitting) the sales tax, how do I convince the State tax office that I am paying the correct amount since the Air revenue will be in my totals but AIR is the one to remit it.

 

[Morticia]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax..

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

Consider this, though...the first time the guest rents the room directly thru Air, and the tax is collected (by Air) and given to the state (supposedly). However, for subsequent return visits to the same Air property, the guest contacts the Air host directly and pays them directly, therefore completely skirting both Air and the tax. Don't let your state allow Air to police themselves!! Push for the requirement of licensing/zoning, etc. of the individual properties themselves!
.

The powers that be in Maine don't care. They don't want more regulations or more state employees. Individual towns are going after regulations.

 

[TheBeachHouse]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax..

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

Consider this, though...the first time the guest rents the room directly thru Air, and the tax is collected (by Air) and given to the state (supposedly). However, for subsequent return visits to the same Air property, the guest contacts the Air host directly and pays them directly, therefore completely skirting both Air and the tax. Don't let your state allow Air to police themselves!! Push for the requirement of licensing/zoning, etc. of the individual properties themselves!
.

The powers that be in Maine don't care. They don't want more regulations or more state employees. Individual towns are going after regulations.
.

Our town could lower property taxes if they collected on all the illegal rentals.

 

[GoodScout]

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax..

It looks like air is going to start collecting lodging tax in Maine. That opens up the tax records to show who air is sending the tax in for. But, unless someone sues the state because they got injured at an unlicensed property no one at the state level is going to pursue licensing. They're getting the big bucks thru the lodging tax.

Consider this, though...the first time the guest rents the room directly thru Air, and the tax is collected (by Air) and given to the state (supposedly). However, for subsequent return visits to the same Air property, the guest contacts the Air host directly and pays them directly, therefore completely skirting both Air and the tax. Don't let your state allow Air to police themselves!! Push for the requirement of licensing/zoning, etc. of the individual properties themselves!
.

The powers that be in Maine don't care. They don't want more regulations or more state employees. Individual towns are going after regulations.
.

Our town could lower property taxes if they collected on all the illegal rentals.
.

Our town could lower property taxes if they collected on all the illegal rentals.

Ours could eliminate them!

 

[gillumhouse]

This was in the PAII Newsletter this morning.