[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):
All taxes imposed by this article shall be paid by the purchaser.
A hotel or motel establishment ("vendor") shall not assume or absorb any tax imposed by this article.
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.
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.
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.
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.
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).