Current through Register Vol. 56, No. 18, September 16, 2024
(a) The following room
and apartment rentals are exempt from luxury tax.
1. The rental of a room or rooms by a person who
resides in it as a permanent resident of Atlantic City. A permanent resident is any
person who:
i. Will occupy a room or rooms under
lease for a term of one year or more; or
ii. Can show a permanency of residence through
other objective factors; such as, voter registration, postal records, driver's
license, work records, etc.
2. The rental of a room or rooms or an apartment
by any person where the rent is paid directly by an agency of New Jersey State,
county, or municipal government, or by any agency of the United States of America.
Where the rent is not paid directly by the governmental agency, it is subject to the
luxury tax.
i. For example: A State government
employee is in Atlantic City on government business. The employee pays for the
occupancy of a room in a motel and the expense will be reimbursed by an agency of
State government. The rental is subject to luxury tax.
3. The room rents received by an exempt
organization. This exemption is limited to rentals that are directly related to the
purpose for which the exempt organization was organized. (See
N.J.A.C.
18:24-9.1)
4. The isolated rental of a room, apartment, or
single family dwelling by a person not engaged in a course of repeated and
successive similar transactions.
5. That
portion of a room rental attributable to the provision of food service to the
occupant or boarder.
6. The rental of
apartments for a period of eight weeks or more.
(b) Every rental of a room or rooms or apartment
is subject to luxury tax unless exempt from tax as provided in (a) above. There is
no exemption from luxury tax by reason of an exemption from sales tax in this State.
For example, an organization that has applied for and received a
New Jersey Exempt Organization Certificate (Form ST-5) arranges for the occupancy of
rooms in a hotel for members attending a convention. The rental charge is invoiced
to and directly paid by the organization. The room rentals are subject to luxury tax
because the law does not provide an exemption for such organizations. However, the
room rentals are not subject to sales tax provided the vendor is given a copy of the
organization's Form ST-5 and payment is made from the organization's funds. (See
N.J.A.C.
18:24-9.12)
