New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 24 - SALES AND USE TAX ACT
Subchapter 3 - HOTEL ROOM OCCUPANCY SUBJECT TO SALES TAX
Section 18:24-3.6 - Permanent residents
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Any occupant of any room or rooms in a hotel for at least 90 consecutive days is considered a permanent resident with regard to the period of such occupancy. There is no tax on the rent for occupancy of a hotel room by a permanent resident. A hotel operator must collect the tax from an occupant until the occupancy reaches 90 consecutive days. When continuous occupancy has reached 90 days, the sales tax is no longer imposed and the tax previously collected is refundable to the occupant. If the tax is not refunded to the occupant by the hotel operator, the occupant may apply directly to the Division of Taxation for a refund. (See N.J.A.C. 18:2-5, Refunds, for general information concerning refund claims.)
(b) If an upfront rental agreement exists between the parties for a rental duration of 90 days or more, sales tax is not required to be charged by the hotel operator on the rental. If the occupant vacates the hotel in less than 90 days, tax is due on the full rental stay.
(c) A business can be deemed a permanent resident when it contracts for a room for use by an employee, customer, client, or other authorized person, as long as the duration meets the 90-day threshold. The contracting business can maintain its permanent resident status even where the room or rooms are not occupied by the same party throughout the rental period.
(d) The change of rooms within the same hotel does not alter a person's or business's status as a permanent resident nor interrupt the number of consecutive days necessary in order to establish permanent residency.
(e) A permanent resident who transfers from one hotel to another hotel, whether or not the hotels are run by the same operator, loses permanent-resident status. The occupant does not continue as a permanent resident at the second establishment until meeting the required 90-day requirement.
