New legislation enacted on July 1, 2018, amends the New Jersey Meadowlands Tax Relief Act by expanding the imposition of the Meadowlands Regional Hotel Use Assessment (Hotel Use Assessment) to hotels located anywhere within designated municipalities even if they fall outside of the Meadowlands District.
Since March 1, 2015, hotels located in the Meadowlands District, including those located on State-owned lands, have been required to collect and remit a 3 percent Hotel Use Assessment on the charges for every hotel room occupancy. The Meadowlands District comprises a 30.4 square-mile area along the Hackensack River covering portions of 14 municipalities located in Bergen and Hudson County. Those 14 municipalities are:
Requirement to Collect the Hotel Use Assessment
Beginning on and after August 1, 2018, hotels located anywhere within the above listed municipalities are subject to the Hotel Use Assessment, including hotels located on State-owned lands. Hotels located in these designated “constituent municipalities” must collect and remit the Hotel Use Assessment on the rent charged for room occupancies.
The Hotel Use Assessment is imposed on room rentals that are currently subject to the New Jersey Sales Tax, and is in addition to the Sales Tax, the Hotel/Motel State Occupancy Fee, and the Municipal Occupancy Tax, as well as any other tax or fee imposed by local ordinance. The Hotel Use Assessment must be separately stated on any bill, receipt, invoice, or similar document that the hotel provides to the occupant.
“Constituent municipality” means any of the following municipalities: Carlstadt, East Rutherford, Little Ferry, Lyndhurst, Moonachie, North Arlington, Ridgefield, Rutherford, South Hackensack, and Teterboro in Bergen county; and Jersey City, Kearny, North Bergen, and Secaucus in Hudson County.
“Hotel” means a building or portion of it, which is regularly used and kept open for the lodging of guests and is subject to the New Jersey Sales and Use Tax Act and the Hotel Occupancy Tax Act.
“Occupancy” means the use or possession or the right to the use or possession, of any room in a hotel.
“Room” means any room or rooms of any kind in any part or portion of a hotel, which is available for or let out for any purpose other than a place of assembly.
Filing and Payment
On and after August 1, 2018, hotels must report and remit the Hotel Use Assessment on a monthly basis.
The Meadowlands Regional Hotel Use Assessment Return (Form MRA-100) is due on or before the 10th day of the month following the end of the calendar month. Returns are required to be filed for each month even if there were no receipts subject to the Hotel Use Assessment for that particular month.