From the Star Ledger:
New rental tax worries some shore renters, homeowners
A new tax in New Jersey on short-term lodging such as Airbnb rentals is rattling some property owners and renters who worry that it could deal a blow to the state’s multi-billion dollar shore tourism industry by pushing people to consider other destinations.
Democratic Gov. Phil Murphy proposed extending the state’s sales and occupancy tax to transient accommodations like Airbnb and VRBO rentals during last year’s budget process, and it flew largely under the radar as Murphy and the Democrat-led Legislature scrapped over bigger taxes such as income taxes and corporate business rates.
But since the 11.625 percent tax — higher in some towns that have their own fees — went into effect late last year, a group of property owners, some from Pennsylvania and New York, have taken their concerns to lawmakers.
The issue is rising to the surface now in particular because many shore rentals are locked up in January. The new tax law requires property owners who let out their homes, including vacation properties along the state’s roughly 130-mile coastline, to collect the tax from short-term renters. In many cases, this is affecting owners and renters who have long-standing arrangements, or who rent by word of mouth or via informal social media posts.
…
Just how many people the new tax will affect is unclear. Payne says the coalition estimates that it could be as high as 6,000. A legislative estimate that accompanied the bill found it would bring in an indeterminate amount of cash.The state’s tourism website estimates overall the shore saw 100 million visitors in 2017 and accounted for about $43 billion in spending.
Murphy’s administration defended the tax as a way to “level the playing field” between hotels, motels and transient accommodations done through online marketplaces like Airbnb, according to a statement from treasury spokeswoman Jennifer Sciortino.
She also pointed out that the law offers short-term renters a way around the tax since transactions through real estate agents are exempt from the tax. That’s a point that rankles owners. Payne called it “discriminatory” and said many owners prefer to deal with their guests directly.
…
Kathy Coccia, 68, is a retired grandmother from Cranford, New Jersey, and has been renting a vacation house in Avalon along with her husband, daughter, son-in-law and two grandkids for the past 10 years. This year, though, when she called to inquire about renting the shore house, she said she was stunned to learn about New Jersey’s new tax on certain rental properties.She said she and her family are considering another destination.
“I feel I’m being taken advantage of,” she said. “It’s a lot. New Jersey asks a lot of its homeowners.”
Frfrfrfrfrfrist
Of the 6 properties I put on the market on 1/2/19 three now have accepted offers. The single greatest trend I have observed since the end of the holiday season is the willingness of buyers to make low ball offers.
On “news” I learned that Channel 5 said that at 6:11 Am it was 31 degrees (brought to you by Columbia bank)
I also learned that MLK is the only Federal Holiday not named after a President. I guess Columbus was a president, and in fact there is only 1 Federal Holiday named after a president, Washington. New Years day, July 4th, Memorial Day, Labor Day, Veterans Day, Thanksgiving, and Christmas are also not named after Presidents.
Also learned more to that KY Catholic school story as there was another protest group that actually was the main cause of issues. Apparently there is an hour tape that gives further background.
The single greatest trend I have observed since the end of the holiday season is the willingness of buyers to make low ball offers.
You sure they aren’t market price offers? :)
Sorry, had to do it.
Property listed 1/2. Offer accepted 1/16. List price $749,900. Initial offer from buyer #1 $690,000. A second offer comes in at 705. Go to highest and best. Offer accepted 750.
Another property listed 1/2. Initial offer $690,000. Asking price 729,900. Offer accepted 723.
Yes, it costs a ton of money to maintain those beaches. Everything should be free, correct? How much it cost to rebuild all those roads and remove all that sand from Sandy? Who paid for it? Maybe get rid of govt and let the individuals pay for this themselves. Then let me hear them cry about taxes and govt.
“Kathy Coccia, 68, is a retired grandmother from Cranford, New Jersey, and has been renting a vacation house in Avalon along with her husband, daughter, son-in-law and two grandkids for the past 10 years. This year, though, when she called to inquire about renting the shore house, she said she was stunned to learn about New Jersey’s new tax on certain rental properties.
She said she and her family are considering another destination.
“I feel I’m being taken advantage of,” she said. “It’s a lot. New Jersey asks a lot of its homeowners.””
I have no problem with the tax, except that Realtors were excluded from it.
If everyone were taxed at the same rate, it would be a non-issue.
But it reaks of political quid pro quo. How much Realtor money went into Murphy’s dark funds, funded other democratic campaigns.
The astounding hypocrisy of building in a loophole to create a protected class of wealthy Realtors. Keep in mind, this came from the Democrats.
This is the stuff that drives me absolutely nuts. The unnecessary damage to the road, the environment and your car are completely and easily preventable. This is the kind of sh1t that gets me mad about the public sector workers. They know exactly what they are doing. If you questioned them, they would say they are just following orders. What about their duty to serve the taxpayer?
There’s only so far these guys can go. In public work, people who question those above them are quickly canned. That’s why tenure, which I was against years ago is very important. It allows me to tell anyone above me to drop dead and do what’s right.
But I’ll give you a case in point. At my last school, they paid some stupid company in Maryland hundreds of thousands of dollars to manage the temperature from a remote location…which IMO is completely absurd. Set the thermostats to 70 and be done with it. The company was absolute crap. They would have the heat blasting in June and my room would be 95. Every morning, they would have to get on the phone with them to correct something. At some point, I got sick of going through the pipeline to get the problem fixed because it would reappear the next morning. So, in the interest of not boiling my students to death and not wasting money, I found a way to bust into the heating unit in my classroom’s wall and turned it off manually. The vice principal told me I’m not allowed to do that but the problem would never be fixed if I didn’t. At some point, I got an email from the assistant superintendent directing me to stop. People high up never fix problems and are likely there because of someone they know.
I’m sure the DOT workers have no option. Stay home? Don’t salt the roads even if they are told to? This blame lays solely on the DOT administration and Murphy. They are overreacting because he got politically killed for his crappy response to the storm. Now he’s overcompensating on the other end and getting killed for that. Is it too much to ask for the administration to take the appropriate actions for each storm that approaches like we have for the past 60 years?
If you are not with the progressive agenda, fake news is your mortal enemy. They will stop at nothing to destroy you. Even a kid.
If your with the progressive agenda, anything can be forgiven. Gay bashing at msnbc, anti semites in the open, covering up rape accusations.
Grim, one purpose of the tax is to go after a black or grey market in rentals. By exempting r/e based bookings, it forces the revenue stream into the light to be taxed.
New Jersey-New York area lost 5,700 millionaires in 2018
https://www.northjersey.com/story/news/new-jersey/2019/01/18/new-jersey-area-lost-5-700-millionaires-2018/2605414002/
Grim, one purpose of the tax is to go after a black or grey market in rentals. By exempting r/e based bookings, it forces the revenue stream into the light to be taxed.
It creates a new, large, black market for word-of-mouth cash rentals.
Elections have consequences, Kathy.
I predict at least a one billion dollar NJ budget shortfall for this fiscal year.
I increased my 401k contribution last year to get a bit more tax savings because of the SALT changes. I bet many others did this as well. Between this and millionaires leaving, the first half of this year should be interestimg to watch the implosion.
“New Jersey-New York area lost 5,700 millionaires in 2018”
30 year, “lowballs” an indicator of an upcoming turn to a buyers market?
If you can where did the second bidder in the highest and best come in? Anywhere near 750?
Lib just a bunch of losers who cannot hack it here! Let them leave! I mean they expect to live in NJ with its state of the art modern infrastructure including the pride of the state NJ Transit and they expect to pay low taxes??!! Bunch of losers!!
The only upside to high taxes and high prices is that it keeps out the riff raff.
Leftwing 735
grim: I have no problem with the tax, except that Realtors were excluded from it.
There’s also a car dealer exemption carved in for car trade-ins. You buy a $50,000 car and pay sales tax. You sell it for $40,000 a year later and the next guy pays sales tax. In other states, you can get your share of the sales tax back on the $40,000. Not in NJ, they set it up so you can only get that back by trading it in and not paying sales tax on the trade-in amount. Sell it privately? You’re SOL.
The only upside to high taxes and high prices is that it keeps out the riff raff.
I used to think so. I considered buying in Hopewell after renting a small house there for a year. Expensive as hell with high taxes. Very similar to Princeton/Montgomery. Top ranked school system as well. We decided against it because the homes were too old and unkept in that area. Meanwhile, right where we considered buying, they erected a gigantic low income apartment complex. They had a home invasion/hostage situation occur within a few months.
Used to see the same stuff in West Windsor. I rented a 1 BR apartment. The section 8 kids would walk around trying to terrorize the workers/residents. I just came off 10 years in the New Brunswick ghetto so I used to just laugh at them. Cops had to stop by on a weekly basis.
But the point does stand, without it, the riff raff does have a major roadblock from moving in and it is limited.
“Housing market shows signs of hope”
https://apple.news/AOnifIcvVQH2pI4zWLe2MxQ
“Home-builder confidence rebounds from 3-year low as housing market catches a break”
https://www.marketwatch.com/story/home-builder-confidence-rebounds-as-housing-market-catches-a-break-2019-01-16
https://www.reuters.com/article/us-lennar-results/lennar-sees-housing-demand-rebounding-shares-up-nearly-10-percent-idUSKCN1P313I
“The message of these two graphs is obvious. Long-term Treasury rates are now as low as they were a year ago, when housing peaked. Mortgage rates aren’t quite there yet, but they aren’t far off. And potential home buyers have responded by applying for mortgages at the highest rate in nearly 9 years.”
https://seekingalpha.com/article/4233876-bond-market-rescuing-housing-market
“The slowing U.S. housing market may have finally bottomed”
https://finance.yahoo.com/news/us-housing-market-bottom-low-mortgage-rates-173606509.html
San Francisco’s Rebounding Market Pushes Rents Further
A lull in multifamily construction activity has pushed the metro’s average rent up 3.9 percent to $2,662, nearly double the $1,420 national figure.
https://www.multihousingnews.com/post/san-franciscos-rebounding-market-pushes-rents-further/
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