[Adopted 3-25-2004 by Ord. No. 6-2004[1]; amended in its entirety 3-9-2023 by Ord. No. 9-2023]
[1]
Editor's Note: This ordinance was adopted as Article V of Ch. 169 but renumbered for codification purposes.
It is the purpose of this article to implement the provisions of N.J.S.A. 54:32D-1 et seq., as amended, to hotels, motels and short-term rentals, which authorizes the governing body of a municipality to adopt an ordinance imposing a tax at a uniform percentage rate on charges of rent for every occupancy of a room or rooms in a hotel or motel or a short-term rental subject to taxation pursuant to N.J.S.A. 54:32B-3(d), which 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 or motel room or a short-term rental.
As used in this article, the following terms shall have the meanings indicated:
APARTMENT or DWELLING UNIT
Any room or rooms or suite or apartment thereof, whether furnished or unfurnished, which is occupied or intended, arranged, or designed to be occupied for sleeping and dwelling purposes by one or more persons, excluding the owner thereof, and shall include all privileges, services, furnishings, furniture, equipment, facilities and improvements connected with the use or occupancy thereof; and which shall include a single-family residence designed for use by one family or household unit for living and sleeping purposes.
PROFESSIONALLY MANAGED UNIT
An apartment or dwelling unit that is offered for rent that is directly or indirectly owned or controlled by a person offering for rent two or more other units during the calendar year.
SHORT-TERM RENTAL
A transient accommodation with a lease of less than 90 consecutive days.
TRANSIENT ACCOMMODATION
An apartment or dwelling unit that is obtained through a transient space marketplace or is a professionally managed unit. It does not include a rental transaction where a licensed real estate broker performs all the services necessary to carry out the rental.
TRANSIENT SPACE MARKETPLACE
Any electronic or internet-based advertising form used for the purpose of renting or leasing a transient accommodation wherein the payment for the accommodation is made through a means provided by the marketplace or travel agency, either directly or indirectly, regardless of which person or entity receives the payment, and where the contracting for the accommodation is made through the marketplace or travel agency.
There is hereby established a hotel and motel room and short-term rental occupancy tax in the City of Somers Point, which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a hotel or motel room or short-term rental in the City of Somers Point in a hotel or motel subject to taxation pursuant to N.J.S.A. 54:32B-3(d).
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 or motel room or a short-term rental.
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 N.J.S.A. 54:32B-9(a).
In accordance with the requirements of N.J.S.A. 54:32D-1 et seq.:
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 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 provision shall be up to $500 or 90 days in jail, or both, at the discretion of the Judge of the Municipal Court, for each offense.
The tax imposed by this article shall be collected on behalf of the City by the person or entity collecting the rent from the hotel or motel or short-term rental 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 shall be joined as a party in any action or proceeding brought to collect the tax.
From and after the effective date of this article, the hotel and motel occupancy tax revenue shall be included within the annual budget, and a dollar amount not less than 33 1/3% of the hotel and motel occupancy tax revenue received by the City of Somers Point during the preceding calendar year or $50,000, whichever is less, shall be included within the next annual budget as a line item to fund the Somers Point Economic Development Advisory Committee. All expenditures of the Somers Point Economic Development Advisory Committee shall, however, remain subject to review by and approval of the governing body.