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Passaic council advances short‑term rental registration and 3% occupancy tax amid parking, enforcement questions

Passaic City Council · February 4, 2026
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Summary

Council advanced an ordinance to register short‑term rental units and a separate ordinance to impose a 3% occupancy tax after weeks of preparation; members and residents pressed officials about enforcement of occupancy and parking rules, administrative costs, and how revenue would be used.

Passaic City Council moved forward on two measures intended to regulate short‑term rentals and capture tax revenue from them, advancing a unit registration scheme and a separate 3% occupancy tax and $250 registration fee.

Supporters said the registration ordinance (Proposed Ordinance 25‑12‑26) is intended to bring existing short‑term rentals into a regulatory framework that protects safety, limits the number of nights a principal residence may be rented and gives the city enforcement tools. A related ordinance (Proposed Ordinance 25‑13‑26) would add an occupancy tax to Chapter 275 and impose a $250 registration fee for qualifying units.

Why it matters: Council members said the measures are designed to balance neighborhood impacts and homeowner financial flexibility ahead of major events that could raise demand. City staff told the council they…

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