Keansburg proposes 3% occupancy tax; Airbnb host voices concern

Keansburg Borough Council introduced Ordinance #1728 on Aug. 21 to establish a municipal occupancy tax of 3% on charges for hotel rooms and transient accommodations, citing authority under N.J.S.A. 40:48F-1. The ordinance text describes who is subject to the tax, exemptions consistent with state statute, vendor obligations, penalties for violations and collection procedures.

During the public-comment period, Muhanad (Moe) Alagha of 79 Bayview, who identified himself as a property owner operating an Airbnb, said short-term rental platforms already take a 3% fee and expressed concern about the additional municipal charge and its effect on hosts. "Air B&B was already taking a 3% fee," he said. Economic Development Coordinator Cliff Moore explained the ordinance's background and intent, and Councilman Tonne described the distinction the ordinance seeks to draw between traditional long-term rentals and short-term rentals.

The measure was introduced on first reading and scheduled for public hearing on Wednesday, Sept. 18, 2024 at 7 p.m., when the council will accept additional public comment and consider final adoption. The ordinance text includes vendor provisions intended to require collection by the person taking rent and to make vendors personally liable for remitting the tax; it also incorporates definitions from state law to determine which accommodations are subject to the tax.

If adopted, the tax would be in addition to other state or local taxes and the borough would publish guidance for vendors and hosts on collection and exemptions.