Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Increases maximum permissible rate of hotel occupancy tax authorized to be imposed in certain municipalities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the rate of hotel occupancy taxes in certain municipalities and amending P.L.1981, c.77.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.1981, c.77 (C.40:48E-3) is amended to read as follows:
3. The governing body of any city of the first class or the governing body of any city of the second class in which there is located a terminal of an international airport may make, amend, repeal and enforce an ordinance imposing in the city a tax, not to exceed [6%] 10%, on charges for the use or occupation of rooms in hotels which tax shall be in addition to any other tax imposed by law.
(cf: P.L.1991, c.23, s.3)
2. This act shall take effect immediately.
STATEMENT
This bill would increase the maximum permissible rate of the hotel tax authorized to be imposed in cities of the first class and certain cities of the second class.
Under the current provisions of section 3 of P.L.1981, c.77, (C.40:48E-3), the governing body of any city of the first class (currently Newark and Jersey City), or the governing body of any city of the second class in which there is located a terminal of an international airport (currently Elizabeth) are permitted to impose a hotel occupancy tax of not more than 6% on the occupancy of hotel rooms. This bill would amend N.J.S.A.40:48E-3 to increase the maximum amount of that permissive hotel occupancy tax to 10%, to provide additional local non-property tax revenue.