Governor Murphy Sneaked Another Tax By You
It’s always been difficult to live in New Jersey because of the onerous taxes, restrictions and fees, but due to the fact that we are a creative and industrious lot, we’ve always found a way to make it through.
Traditionally, New Jersey property owners have found a couple of extra bucks by either buying summer rental properties or, more recently, using their already existing properties as short term rentals through Airbnb or similar sites. But even that revenue stream is not safe from the hungry New Jersey tax monster, hungrier now due to a governor who never saw a tax he didn’t like.
One of the greatest advantages of living in the state of New Jersey is our beautiful coastline, and savvy business people (or people just desperate for a few extra bucks) have always been able to take advantage of that by encouraging out-of-staters to come for a visit, enjoy our magnificent beaches and pay them rent.
But when we weren’t paying attention during last year’s budget process, Phil Murphy proposed extending the state’s sales and occupancy tax to transient accommodations like Airbnb and VRBO rentals. Lost in the more of Murphy and the Democrat-led Legislature sniping over bigger taxes such as income taxes and corporate business rates, this new tax unsurprisingly became a fait accompli.
Not only will this affect the property owners, but it could potentially harm the New Jersey economy as well, as people may think twice about spending that summer week in New Jersey. Another penny-wise, pound-foolish move by Murphy and his ilk. (Come to think of it, I don’t even believe that it can be considered “Penny-Wise”.) As usual, Governor Phil Murphy does not understand an intrinsic New Jersey concept; our traditional summer shore rental market which keeps some families’ budgets—not to mention our economy—humming along.