Attention LBI Guest New NJ legislation that may increase your vacation rental nearly 12%
Recent NJ legislation will increase your Jersey shore vacation rental nearly 12% unless you book your vacation through Mary Allen Realty. There are many reasons why our guests reserve their LBI vacation through Mary Allen Realty, however, saving money is at the top of the list.
Effective October 1, 2018, a new law imposes sales & use tax (6.625%) as well as a state occupancy fee (5%) charges for the rent of every occupancy of a transient accommodation (short term vacation rentals). If you rent directly from the homeowner, they are required by law to collect 11.625% tax on the transaction. Online travel agencies (OTA) such as Homeaway, VRBO, Airbnb, etc… will collect this tax as well. Mary Allen Realty (MAR), is a licensed real estate brokerage and as such is not required to charge the guest the 11.625% sales & occupancy tax.
Whether you are aware of it or not, OTA’s have been shifting the cost of using their online booking site from the owner to the guest. Using Rent by Owner (RBO), OTA & (MAR)* following example illustrates the cost difference of what the new tax law as well as traditional OTA fees will look like as of Oct 1, 2018:
Vacation Rental Price: 8,000/wk
OTA = Online Travel Agency
RBO = Rent By Owner
MAR = Mary Allen Realty