[Adopted 11-7-2016 by Ord. No. 46-2016]
It is the purpose of this article to implement the provision
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
similar establishment subject to taxation pursuant to Subsection (d)
Section 3 of P.L. 1966, c. 30, N.J.S.A. 54:32B-3 (sales tax), 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.
As used in this article, the following terms shall have the
meanings indicated:
Any establishment, public or private, engaged in the business
of furnishing or providing rooms and overnight camping facilities
intended or designed for dwelling, lodging or sleeping purposes to
transient guests, which establishment consists of two or more guest
rooms but does not include any hospital, convalescent or nursing home
or sanitarium or any hotel-like facility operated by or in connection
with a hospital or medical clinic providing rooms exclusively for
patients and their families.
A "hotel" with individual entrances from the exterior of
the building to each room or unit.
A transient guest of a hotel or motel.
There is hereby established a hotel and motel room occupancy
tax in the City of East Orange, which shall be fixed at a uniform
percentage rate of 3% on charges of rent for every occupancy of a
hotel or motel in the City of East Orange in a hotel or motel subject
to taxation pursuant to Subsection (d) of Section 3 of P.L. 1966,
c. 30, 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 shall be administered
in conformity with the statutory requirements of P.L. 2003, c. 114
(N.J.S.A. 40:48F-2):
A.
All taxes imposed by this article shall be paid by the purchaser.
B.
A hotel or motel establishment ("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 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 a
minimum of $1,000.
The tax imposed by this article shall be collected on behalf
of the City of East Orange 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 City of East Orange shall
be joined as a party in any action or proceeding brought to collect
the tax.
A.
Every person required to collect the tax shall, on or before the
28th day of each month, make and file a return for the preceding month
with the Director of the Division of Taxation ("Director") in the
New Jersey Department of the Treasury and submit all collected funds
to the Director in accordance with the general reporting requirements
of N.J.S.A. 54:32B-17.
B.
The State Treasurer shall pay and distribute to each municipality
the amount of revenues certified by the director of the Division of
Taxation.
The hotel and motel room occupancy tax authorized 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 Section
9, P.L. 1966, c. 30 (N.J.S.A. 54:32B-9).
