Editor's Note: This Chapter 15A to be adopted in the Princeton Code.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
The municipality does hereby impose a tax, at a uniform percentage rate of 1% on charges of rent for every occupancy on or after July 1, 2003, but before July 1, 2004, and 3% on charges of rent for every occupancy on or after July 1, 2004, on a room or rooms in a hotel subject to taxation pursuant to the New Jersey State Sales Tax, more specifically set forth in subsection (d) of section 3 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-3). Upon the effective date of Article VIII of Chapter B16 of this Code, there shall also be a tax of 3% of charges of rent on a room or rooms in a transient accommodation subject to taxation pursuant to the New Jersey State Sales Tax, more specifically set forth in subsection (d) of section 3 of P.L. 1966, c. 30 (N.J.S.A. 54:32B-3). A tax imposed under this section shall be in addition to any other tax or fee imposed pursuant to statute or local ordinance or resolution by the municipality. Any unpaid taxes under this chapter shall be subject to interest at a rate of 5% per annum.
The terms used in this chapter, including but not limited to "hotel," "occupancy," "room," "transient accommodation" and "transient space marketplaces," shall be as defined in N.J.S.A. 54:32B-2.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
A copy of this chapter and any amendment thereto shall be transmitted upon adoption or amendment to the State Treasurer, along with a list of the names and addresses of all hotels, motels and transient accommodations located within the municipality. This chapter or any amendment thereto shall take effect on the first day of the first full month occurring 30 days after the date of transmittal to the State Treasurer during calendar year 2003 and on the first day of the first full month occurring 90 days after the date of transmittal to the State Treasurer for any amendments adopted in calendar year 2004 and thereafter.
Princeton shall annually provide to the State Treasurer, no later than January 1 of each year, a list of the names and addresses of all hotels, motels and transient accommodations located in the municipality, as well as the name and address of any hotel, motel or transient accommodation that commences operation after January 1 of any year.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
The occupancy tax established under this chapter shall be administered in conformance with Section 4 of Chapter 114 of the Laws of 2003 as follows:
(a) 
All taxes imposed by this chapter shall be paid by the purchaser or guest renting a hotel, motel or transient accommodation room;
(b) 
A hotel establishment, motel or transient accommodation (hereinafter "vendor") shall not assume or absorb any tax imposed by this chapter;
(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 hotel, motel or transient accommodation guest, 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 the representation or advertisement continues shall be deemed a separate offense; and
(e) 
Any violation of this section shall be subject to the penalties provided for in § B1-6 of this Code. Each violation of a provision of this section shall be considered a separate offense and a separate offense shall be deemed committed on each day during which or on which a violation occurs or continues.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
(a) 
A tax imposed pursuant to this chapter shall be collected on behalf of the municipality by the person collecting the rent from the hotel or transient accommodation customer.
(b) 
Each vendor or person required to collect a tax imposed by the chapter shall be personally liable for the tax imposed, collected or required to be collected hereunder. Any such vendor or person shall have the same right in respect to collecting the tax from a customer or hotel or transient accommodation guest as if the tax were a part of the rent and payable at the same time; provided, however, that the chief fiscal officer of the municipality shall be joined as a party in any action or proceeding brought to collect the tax.
(c) 
Notwithstanding any other provision of law or administrative action to the contrary, transient space marketplaces shall be required to collect and pay on behalf of persons engaged in the business of providing transient accommodations located in this state the tax for transactions through the transient space marketplace. For not less than four years following the end of the calendar year in which the transaction occurred, the transient space marketplace shall maintain the following data for those transactions consummated through the transient space marketplace:
(1) 
The name of the person who provided the transient accommodation;
(2) 
The name of the customer who procured occupancy of the transient accommodation;
(3) 
The address, including any unit designation, of the transient accommodation;
(4) 
The dates and nightly rates for which the consumer procured occupancy of the transient accommodation;
(5) 
The municipal transient accommodation registration number, if applicable;
(6) 
A statement as to whether such booking services will be provided in connection with (i) short-term rental of the entirety of such unit, (ii) short-term rental of part of such unit, but not the entirety of such unit, and/or (iii) short-term rental of the entirety of such unit, or part thereof, in which a non-short-term occupant will continue to occupy such unit for the duration of such short-term rental;
(7) 
The individualized name or number of each such advertisement or listing connected to such unit and the uniform resource locator (URL) for each such listing or advertisement, where applicable; and
(8) 
Such other information as the Division of Taxation may by rule require.
[Ord. No. 2014-14]
(a) 
A person required to collect a tax imposed pursuant to the provisions of this chapter shall, on or before the dates required pursuant to section 17 of P.L. 1966, c.30 (C.54:32B-17), forward to the Director of the Division of Taxation in the New Jersey Department of the Treasury (hereinafter the "Director"), the tax collected in the preceding month and make and file a return for the preceding month with the Director on any form and containing any information as the Director shall prescribe as necessary to determine liability for the tax in the preceding month during which the person was required to collect the tax.
(b) 
The Director may permit or require returns to be made covering other periods and upon any dates as the Director may specify. In addition, the Director may require payments of tax liability at any intervals and based upon any classifications as the director may designate. In prescribing any other periods to be covered by the return or intervals or classifications for payment of tax liability, the Director may take into account the dollar volume of tax involved as well as the need for ensuring the prompt and orderly collection of the tax imposed.
(c) 
The Director may require amended returns to be filed within 20 days after notice and to contain the information specified in the notice.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
(a) 
The Director shall collect and administer any tax imposed pursuant to the provisions of Section 3 of Chapter 114 of the Laws of 2003. In carrying out the provisions of this section, the Director shall have all the powers granted in P.L. 1966, c. 30 (N.J.S.A. 54:32B-1 et seq.).
(b) 
The Director shall determine and certify to the State Treasurer on a quarterly or more frequent basis, as prescribed by the State Treasurer, the amount of revenues collected for the municipality pursuant to Section 3 of Chapter 114 of the Laws of 2003.
(c) 
The State Treasurer, upon the certification of the Director and upon the warrant of the State Comptroller, shall pay and distribute to the municipality on a quarterly or more frequent basis, as prescribed by the State Treasurer, the amount of revenues determined and certified under subsection (b) of this section. The State Treasurer shall include within each distribution of tax revenue a list of all of the hotels, motels and transient accommodations in the municipality that submitted municipal occupancy tax revenue to the state as required by § B15A-5(a).
(d) 
A tax imposed pursuant to the provisions of this chapter shall be governed by the provisions of the "State Uniform Tax Procedure Law," N.J.S.A. 54:48-1 et seq.
[Ord. No. 2014-14; amended 12-8-2025 by Ord. No. 2025-20]
(a) 
The State Treasurer shall annually provide to the municipality written notification of nonpayment by a hotel, motel or transient accommodation of taxes required to be paid under this chapter. The written notification required shall also authorize the municipality to act as the collection agent for the outstanding balance of taxes due and owing to it in place of the State Treasurer.
(b) 
In the event that the tax imposed under this chapter is not paid as and when due by a hotel, motel or transient accommodation, the unpaid balance, and any interest accruing thereon, shall be a lien on the parcel of real property comprising the hotel, motel or transient accommodation in the same manner as all other unpaid municipal taxes, fees, or other charges. The lien shall be superior and paramount to the interest in such parcel of any owner, lessee, tenant, mortgagee, or other person, except the lien of municipal taxes and shall be on a parity with and deemed equal to the municipal lien on the parcel for unpaid property taxes due and owing in the same year.
(c) 
The municipality shall file in the office of its tax collector a statement showing the amount and due date of the unpaid balance and identifying the lot and block number of the parcel of real property that comprises the delinquent hotel, motel or transient accommodation. The lien shall be enforced as a municipal lien in the same manner as all other municipal liens are enforced.