N.J.S.A. 40:48F-1 authorizes any New Jersey municipality, other than Newark, Jersey City, Atlantic City, Wildwood, Wildwood Crest, and North Wildwood, to adopt an ordinance imposing a municipal tax of up to 3% on the rent charged for the occupancy of a room or rooms in a hotel that is subject to the New Jersey Sales Tax under N.J.S.A. 54:32B-3(d). When imposed, the Municipal Occupancy Tax is in addition to the State Occupancy Fee and the New Jersey Sales Tax.
Atlantic City, Newark, Jersey City, Wildwood, North Wildwood, and Wildwood Crest are prohibited from enacting a Municipal Occupancy Tax because those municipalities already impose local taxes or fees on hotel/motel occupancies. The State Occupancy Fee is imposed at a lower rate in those areas. In Atlantic City, Newark and Jersey City, it is 1%; in the Wildwoods, it is 3.15%.
Lodging facilities on the Municipal Occupancy Tax List will collect the Municipal Occupancy Tax at the 3% rate and the State Occupancy Fee at the 5% rate, except where a lower rate is noted in parentheses, or where a later effective date is indicated.