Back in February this blog asked the question why does Governor Murphy hate the Jersey Shore? At the time the legislature was debating raising the minimum wage to $15 an hour. In another blog post we talked about why the $15 minimum wage is bad for New Jersey. What most New Jerseyans did not anticipate was Murphy’s short tern rental tax. On the same day that Murphy signed the bill to increase the minimum wage to $15 per hour his new short term rental tax went into effect forcing property owners in New Jersey to charge 6.625% state sales tax and a 5% occupancy fee on short-term rentals. The increased minimum wage and short term rental tax are sure to have a damaging long term effect on the Jersey Shore as the cost of a family vacation at the Jersey Shore will increase by hundreds of dollars. Murphy appears more focused on using tax payer resources to assist illegal immigrants than protecting the livelihoods of those who depend on Jersey Shore tourism for their livelihoods. A bill is on the Governor’s desk to repeal the short term rental tax but Murphy has taken no action leaving New Jerseyans to again ask why Governor Murphy hates the Jersey Shore.
The bill has been waiting for Murphy’s signature since June 27th. The Governor’s office has given no estimate as to when he will sign the bill which has already passed in the Legislature.
The intent of the law was to tax AirBnB rentals but was written in a way that it applies to anyone renting their homes out without using a real estate agent or property management service. People who had rented their shore rentals themselves (and in some cases even to the same families) for years now had to charge the combined 11.625% tax.
State Senator Bob Andrzejczak (D-Cape May) told NJ 101.5 radio “Summer rentals by private owners, for this year alone, the numbers have dropped significantly. If the goal was to collect more tax revenue, well, we’re not actually going to be collecting more because we’re going to having less people coming into our state.”
State Senator Declan O’Scanlon (R-Monmouth) told NJ.com “Virtually everybody agrees that’s good policy. If they believe it’s good policy, why not be willing to sign it while it’s impactful? t’s nice to talk about the review process but in a situation like this you accelerate the review process because it’s immediately impactful.”
So why will the governor not sign the bill? NJ.com speculates it’s because every day that Murphy waits to sign the bill the state collections more tax revenues. Whatever the reason we have a Governor who is originally from Massachusetts who seems determined to ruin New Jersey’s economy and chase revenue generating citizens and tourists from the state.
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