Merchantville introduces short-term rental rules and a 3% municipal occupancy tax

The Borough Council on April 13 introduced two ordinances that together establish local rules and taxation for short-term rentals.

Council Member Anthony Perno and borough staff presented Ordinance 26-07, which would add an Article to Chapter 66 defining short-term rentals (2–7 consecutive nights), require owner-occupied registration with the Office of Code Enforcement, cap monthly rental nights at seven, require a 24/7 emergency contact who can respond within one hour, mandate annual registration ($75) and liability insurance coverage of $500,000 per occurrence. The ordinance requires annual or pre-issuance inspections by the Fire Marshal and Code Enforcement Officer and limits occupancy to two persons per bedroom plus two additional persons, subject to fire- and housing-code limits. Penalties include a minimum $250 fine per violation and possible revocation of the STR permit.

On the same agenda the council introduced Ordinance 26-08 to add a Municipal Occupancy Tax of 3% on gross rent charged for transient accommodations, to be collected by operators and remitted quarterly. The ordinance specifies exemptions (rentals of 90 days or more, government stays, certain 501(c)(3) uses), requires operators to register with the Borough Tax Collector and retain records for four years, and authorizes collection agreements with transient-space marketplaces. The revenue is designated for municipal purposes including public safety, code enforcement and infrastructure maintenance.

Both ordinances were introduced for further consideration and public hearing; minutes record introduction and set final reading/hearing dates but do not record final votes or adoption.