It is the purpose of this article to implement the provision
of P.L. 2003, c. 114, which authorizes the governing body of a municipality
to adopt an ordinance imposing a tax at a uniform percentage rate
not to exceed 3% on charges of rent for every occupancy of a room
or rooms in a hotel subject to taxation pursuant to Subsection (d)
of § 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 the
occupancy of a hotel room.
There is hereby established a hotel and motel room occupancy
tax in the Township of Montclair which shall be fixed at a uniform
percentage rate of 3% on charges of rent for every occupancy of a
room in the Township of Montclair in a hotel or motel subject to taxation
pursuant to Subsection (d) of § 3 of P.L. 1966, c. 40, N.J.S.A.
54:32B-3 (sales tax).
The hotel and motel room 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 of a hotel
room.
The hotel and motel room occupancy tax authorized herein shall
not be imposed on the rent for an occupancy if the purchaser, user
or consumer is an entity exempt from the tax imposed on an occupancy
under the Sales and Use Tax Act pursuant to Subsection (a) of § 9
of P.L. 1966, c. 30 (N.J.S.A. 54:32B-9).
The hotel and motel room occupancy tax shall be administered
in conformance with the requirements of P.L. 2003, c. 114:
A. All taxes imposed by this article shall be paid by the purchaser.
B. A hotel or motel establishment (hereinafter "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 up
to $1,500 for each offense.
The tax imposed by this article shall be collected on behalf
of the Township by the person collecting the rent from the hotel or
motel 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 Township shall be joined as a party
in any action or proceeding brought to collect the tax.