The New Jersey Division of Taxation has issued a notice on legislation that created the New Jersey Meadowlands Tax Relief Act, which imposes a Meadowlands regional hotel use assessment of 3% of the rent charged for the occupancy of every hotel room located in the Meadowlands District, including any hotels located on state-owned land, beginning on or after March 1, 2015. The assessment is imposed on room rentals that are currently subject to the sales tax and is in addition to the sales tax, the state hotel/motel state occupancy fee, and the municipal occupancy tax, as well as any other tax or fee imposed by local ordinance on hotel occupancies. The assessment must be separately stated on any bill, receipt, invoice or similar document that the hotel provides to the occupant.
Taxpayers must report and remit the assessment on a monthly basis. Occupancies prior to March 1, 2015, are not subject to the hotel use assessment. If a taxable occupancy begins before March 1, 2015, only the rent for occupancy for March 1 and after is subject to assessment. The first return, covering the period of March 1, 2015, through March 31, 2015, is due on or before April 10, 2015.
Exemptions to the assessment: The Meadowlands regional hotel use assessment is not imposed on the rental of a room when the purchaser, user, or consumer is a New Jersey or federal agency, instrumentality, or political subdivision, or the United Nations, or any other international organization of which the United States is a member. Other exempt organizations, such as religious, educational, and charitable organizations that may qualify for exemption from New Jersey sales and use tax on purchases (Form ST-5 holders), are not exempt from the hotel use assessment. Notice, New Jersey Division of Taxation, February 27, 2015