Borough of South River, NJ Article III Hotel, Motel and Guesthouse Room Occupancy Tax

[Adopted 9-8-2003 by Ord. No. 2003-29 (Ch. 176, Art. IV, of the 1977 Code)]

§ 306-17 Purpose.

It is the purpose of this article to implement the provisions of P.L. 2003, c. 114, (N.J.S.A. 40:48F-1 et seq.) which authorizes the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate not to exceed 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and not to exceed 3% on charges of rent for every occupancy on or after July 1, 2004, of a room or rooms in a hotel, motel or established guesthouse subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40 (N.J.S.A. 54:32B-3) which shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon occupancy of a hotel, motel or established guesthouse.

§ 306-18 Tax rate percentage established.

There is hereby established a hotel, motel, and established guesthouse occupancy tax in the Borough of South River which shall be fixed at a uniform percentage rate of 1% on charges of rent for every occupancy of a hotel, motel or established guesthouse in the Borough of South River on or after July 1, 2003, but before July 1, 2004, and 3% on charges of rent for every occupancy of a hotel, motel or established guesthouse in the Borough of South River on or after July 1, 2004, of a room or rooms in a hotel subject to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966, c. 40, N.J.S.A. 54:32B-3 (sales tax).

§ 306-19 Additional nature of tax.

The hotel, motel and established guesthouse occupancy tax shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by any governmental entity upon the occupancy in a hotel, motel or established guesthouse.

§ 306-20 Assumption of tax by vendor prohibited; penalty.

In accordance with the requirements of P.L. 2003, c. 114:

A. All taxes imposed by this article shall be paid by the purchaser.

B. A vendor shall not assume or absorb any tax imposed by this article.

C. A vendor shall not in any manner advertise or hold out to any person or to the public in general, in any manner, directly or indirectly, that the tax will be assumed or absorbed by the vendor, that the tax will not be separately charged and stated to the customer or that the tax will be refunded to the customer.

D. Each assumption or absorption by a vendor of the tax shall be deemed a separate offense, and each representation or advertisement by a vendor for each day that the representation or advertisement continues shall be deemed a separate offense.

E. The penalty for violation of the foregoing provisions shall be as provided in Chapter 1, Article I, General Penalty, for each offense.

§ 306-21 Collection of tax.

The tax imposed by this article shall be collected on behalf of the Borough of South River by the person collecting the rent from the hotel, motel or established guesthouse customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such person shall have the same right in respect to collecting the tax from a customer as if the tax were a part of the rent and payable at the same time, provided that the Chief Financial Officer of the Borough of South River shall be joined as a party in any action or proceeding brought to collect the tax.