New Jersey imposes Sales Tax on hotel and motel occupancies. The current Sales Tax rate is 6.625%.
For Sales Tax purposes, a “hotel/motel” is a building that is regularly used and kept open for the lodging of occupants, is typically maintained by on-site management with front desk reception, and includes customary services, such as maid services and room service.
A room, group of rooms, or other living or sleeping space used as a place of assembly is exempt from Sales Tax.
Returns (Form HM-100) are filed on a monthly basis (20th day of the month following the month for which tax is due).
Monthly distributions of the locally enacted Hotel Motel Occupancy Tax will be sent to each municipality electronically to the same bank account number used for State Aid payments.
If a municipality wants to change their banking information for payments issued by the State, review the Electronic Payment Authorization For Automatic Deposits (ACH Credits) Form for further information.
As a result of concern on the part of municipalities, we have assembled a list of the possible reasons for discrepancies in local distribution. Some of the local shortcomings result from one or more of the following, which may be under the control of the State of New Jersey:
Some discrepancies not under the State's control:
We will continue to improve on the distribution of these moneys to the municipalities that have enacted a local ordinance.
N.J.A.C. 18:24, N.J.S.A. 40:48F-5, P.L. 2010, c.55, P.L. 2018, c. 49