More New NJ Taxes Going Into Effect Right Now
TRENTON — New Jersey's 4.3 cent-per-gallon tax increase is getting all the attention but four other taxes also go up or will be collected starting Monday.
INTERNET SALES TAX:
Following a Supreme Court ruling, New Jersey is expected to take in $188 million on all internet sales. Previously, the tax could be collected from companies that had a physical presence in the state. Nine other states will also begin collecting on internet sales on Monday.
A 12 to 15 percent tax on homes rented though Airbnb or similar services goes into effect but likely won't be collected just yet as the Division of Taxation has to issue guidance as not to impact Jersey Shore rentals. The tax was vaguely worded and was not intended to hurt Jersey Shore rentals, officials say. $17 million is expected to be raised.
“On an average $5,000 a week vacation rental on Long Beach Island, you’re talking about adding $600 or more on tax on top of that, which could push travelers to other states looking for a cheaper vacation experience,” Duane Watlington of Vacation Rentals LBI said. New Jersey will become one of the last to apply occupancy and sales taxes to short-term rentals brokered through online sites like Airbnb.
“The goal of this policy change is to level the playing field statewide between existing hotels and motels and transient accommodations conducted through new online marketplaces,” said Treasury Department spokeswoman Jennifer Sciortino. “This law is not expected to apply to the vast majority of reported short-term shore rentals. We are in the process of reworking the guidance issued by Taxation to alleviate any confusion.”
E-CIGARETTE LIQUID NICOTINE
The assembly passed a bill recently that would impose a $0.10 per fluid milliliter tax for the sale of liquid nicotine. The Office of Legislative Services estimates the tax could mean more than $4 million in revenue for the 2019 fiscal year and more than $6 million the next two years.
This reported includes previously reporting by Michael Symons and Adam Hochron