Bill Text: NJ S184 | 2018-2019 | Regular Session | Introduced
Bill Title: Provides temporary exemption from sales and use tax for rental of certain hotel rooms.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-03-28 - Reviewed by the Sales Tax Review Commission Recommend to not enact [S184 Detail]
Download: New_Jersey-2018-S184-Introduced.html
STATE OF NEW JERSEY
218th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2018 SESSION
Sponsored by:
Senator CHRIS A. BROWN
District 2 (Atlantic)
SYNOPSIS
Provides temporary exemption from sales and use tax for rental of certain hotel rooms.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act providing a temporary exemption from the sales and use tax for the rental of certain hotel rooms, supplementing P.L.1966, c.30 (C.54:32B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. The rent for the occupancy of a room or rooms in a hotel in this State is exempt from the tax imposed by the "Sales and Use Tax Act," P.L.1966, c.30 (C.54:32B-1 et seq.), if the rent for the occupancy of the room or rooms: (1) is taxable pursuant to a municipal ordinance adopted in accordance with P.L.1947, c.71 (C.40:48-8.15 et seq.) and in effect on the date P.L. , c. (C. ) (pending before the Legislature as this bill) is enacted; (2) applies to an occupancy that occurs during the evening of a Monday, Tuesday, Wednesday, or Thursday of a week that falls entirely within the temporary exemption period; and (3) applies to an occupancy that is directly and primarily related to the occupant's participation in, or attendance at, a show, concert, contest, or an event or exhibition at a convention center project.
b. For purposes of this section:
"Convention center project" means the project authorized by paragraph (9) of subsection a. of section 6 of P.L.1971, c.137 (C.5:10-6).
"Temporary exemption period" means the period on or after July 1, 2012 but before July 1, 2015.
2. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Director of the Division of Taxation in the Department of the Treasury may adopt immediately upon filing with the Office of Administrative Law such regulations as the director deems necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), which regulations shall be effective for a period not exceeding 180 days following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the director in accordance with P.L.1968, c.410 (C.52:14B-1 et seq.).
3. This act shall take effect immediately.
STATEMENT
This bill provides a temporary exemption from the imposition of the sales and use tax for the rental of certain hotels rooms.
Under the bill, the rental of a room or rooms in a hotel is exempt from the sales and use tax, if the rent for the occupancy of the room or rooms: (1) is taxable under a municipal ordinance authorized by the law that authorizes the Atlantic City "luxury tax"; (2) applies to an occupancy that occurs during the evening of a Monday, Tuesday, Wednesday, or Thursday of a week that falls entirely within the temporary exemption period; and (3) applies to an occupancy that is directly and primarily related to the occupant's participation in, or attendance at, a show, concert, contest, or an event or exhibition at a convention center project.
The bill defines "temporary exemption period" as the period on or after July 1, 2012 but before July 1, 2015. The bill defines "convention center project" to include the Atlantic City Convention Center and the Boardwalk Hall Convention Arena.
The purpose of the exemption is to provide a temporary tax incentive to attract and retain business to the Atlantic City Convention Center and the Boardwalk Hall Convention Arena, and to, more generally, facilitate tourism-related travel to the greater Atlantic City region during off-peak periods of travel.
