NJ Sales Tax & Occupancy Tax
In October of 2018, the State of New Jersey passed a law charging sales tax on owner rentals, as well as on rentals made by certain rental companies such as Air BNB, Homeaway, VRBO, etc. According to the new law, owners will be charged a state sales of 5% & an occupancy tax of 6.625% for a total of 11.625% tax on those rentals. If rentals are made through a real estate office, the owner rentals are exempt from this tax.
We are offering to do owner rentals at 5%. This would include our office writing the lease, collecting deposits and paying owners. It is required by the State that all rental money has to go through our escrow account.
If we can assist you in your owner rentals, please let us know. If you have any questions please call and ask for Sharon or Paul. For more information on the tax please click on the link below.