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Division of Taxation

State Occupancy Fee

The State Occupancy Fee is imposed at the rate of 5% on charges for the rental of hotel and motel rooms that are subject to Sales Tax. This Fee is in addition to the Sales Tax and the Municipal Occupancy Tax, if applicable.

The State Occupancy Fee is imposed at a lower rate in cities in which hotel and motel occupancies are already subject to a local tax:

     Atlantic City, Elizabeth, Newark, and Jersey City — 1%

     Wildwood, North Wildwood, and Wildwood Crest — 3.15%

Billing and Remitting

The State Occupancy Fee is imposed directly on the occupant and must be separately stated as “New Jersey State Occupancy Fee” on any bill, invoice, or other document provided to the occupant.

Note: Sometimes a hotel or motel will sell package deals that include other components, such as meals, tickets, admissions, transportation, etc. In that case, the State Occupancy Fee should be charged only on the amount related to the room/lodging facility occupancy. However, when a continental breakfast or similar complementary service is offered, it is considered included in the room price and, therefore, is subject to the State Occupancy Fee.

The hotel or motel must file Form HM-100 monthly to remit the State Occupancy Fee. The hotel or motel must keep detailed and accurate records of all transactions.

Exemptions from the Fee

The State Occupancy Fee is not imposed when:

  • The occupant is a New Jersey State or federal agency, instrumentality, or political subdivision; the United Nations; or any other international organization of which the United States is a member; as long as the occupancy is paid with government funds;
  • The space is rented for the purpose of assembly (e.g. a meeting, seminar, wedding, etc.);
  • The occupancy lasts for at least 90 consecutive days (permanent resident exemption).

Note: There is no exemption from the State Occupancy Fee for an exempt organization issuing an Exempt Organization Certificate (Form ST-5). The exemption for ST-5 holders pertains only to New Jersey Sales Tax.

Questions?

Inquiries concerning the State Occupancy Fee should be sent via email or in writing to:
New Jersey Division of Taxation
Regulatory Services Branch
P.O. Box 269
Trenton, NJ 08695-0269


Last Updated: Wednesday, 11/18/20