This Notice is to supplement the information in the Notice to New Jersey Lodging Facilities, dated 7/8/03 and revised 7/25/03, the State Occupancy Fee and the Municipal Occupancy Tax is not imposed on the rental of a room to a guest who qualifies as a permanent resident
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The Sales & Use Tax Act imposes tax on "the rent for every occupancy of a room or rooms in a hotel in this State, except that the tax shall not be imposed upon (1) a permanent resident
, or (2) where the rent is not more than $2 per day." N.J.S.A. 54:32B-3(d)
With regard to a permanent resident
, the law states "any occupant of any room in a hotel for at least 90 consecutive days shall be considered a permanent resident with regard to the period of such occupancy." N.J.S.A. 54:32B- 2(m)
Therefore, sales tax is not imposed on the rental charge for a room occupied by a permanent resident. Since the State Occupancy Fee and the Municipal Occupancy Tax are administered in conjunction with the New Jersey Sales & Use Tax Act, the State Occupancy Fee and Municipal Occupancy Tax are also not due in this situation.
The State Occupancy Fee is effective for occupancies on and after August 1, 2003. If a guest occupied a room at the lodging facility for 90 consecutive days prior to August 1, 2003, the guest qualifies as a permanent resident. The facility is not required to collect the sales tax, the State Occupancy Fee, or the Municipal Occupancy Tax, for the remaining period of occupancy. The guest may apply for a refund as described below.
If the 90-day requirement is met after August 1, 2003, the lodging facility may credit to the guest's account the sales tax, the State Occupancy Fee or the Municipal Occupancy Tax, if applicable, if it has not yet been reported and remitted to the State. Alternatively, the guest may apply directly to the New Jersey Division of Taxation for a refund of the sales tax, the State Occupancy Fee, or the Municipal Occupancy Tax.
The Claim for Refund (Form A-3730) can be obtained by calling the Division's Customer Service Center at 609-292-6400 or downloading the form
from the Division's Web site.
Additional questions can be directed to the Regulatory Services Branch, (609) 292-5995 or via e-mail