Newark to regulate Airbnb, charge 6% hospitality tax

Jersey City struck a similar deal with the short-term rental giant last year

TRD New York /
Apr.April 12, 2016 12:00 PM

Newark agreed to legalize and tax Airbnb, becoming the second city in New Jersey to do so.

The city’s mayor Ras Baraka will announce a plan to charge the short term rental service a 6 percent tax, equal to the rate paid by Newark’s hotels, the Wall Street Journal reported.

The mayor said he expected the city to collect about $750,000 in taxes on this service over the next year.

“To bring it under regulation is only fair for other businesses that are doing business,” Mr. Baraka said. “We need to be able to get the revenue from this. The citizens of this city need to be able to benefit.”

While the service remains heavily regulated in New York, it’s recently made over two dozen such agreements in cities around the country, a spokesperson for the company told The Real Deal.

Jersey City’s mayor announced a push back to legalize the service back in October 2015. The city collected $41,000 in taxes from the service in February.

Representatives of the hotel industry grudgingly accepted the new agreement, the Journal reported.

“As long as the regulation and compliance and taxing is similar to traditional hotels, then at least it’s fair,” Marilou Halvorsen of the New Jersey Restaurant and Hospitality Association told the paper. [WSJ] – Ariel Stulberg


Related Articles

arrow_forward_ios
From left: Mayor Bill de Blasio, 54 West 39th Street, 62 Grand Street, and 208 West 30th Street (Credit: Google Maps)

The Airbnb crackdown continues: City targets three more buildings

The Airbnb crackdown continues: City targets three more buildings
Mayor Bill de Blasio and Stanley “Skip” Karol, an Airbnb host (Credit: Getty Images and Youtube)

Airbnb host narrowly clears hurdle in First Amendment claim against city

Airbnb host narrowly clears hurdle in First Amendment claim against city
A West Village Airbnb listing (Credit: Airbnb)

Airbnb Luxe launched without listings in one of their biggest potential markets — why?

Airbnb Luxe launched without listings in one of their biggest potential markets — why?
Airbnb sues LA “party promoter” for throwing “mansion parties”

Airbnb sues LA “party promoter” for throwing “mansion parties”

Airbnb sues LA “party promoter” for throwing “mansion parties”
Airbnb CEO Brian Chesky (Getty; iStock)

Airbnb tore through $1.2B in year before IPO

Airbnb tore through $1.2B in year before IPO
Airbnb CEO Brian Chesky (Getty; iStock)

Airbnb slams door on Halloween-night rentals

Airbnb slams door on Halloween-night rentals
Photo illustration of Brian Chesky (Getty, iStock)

Airbnb looks to raise $3B in December IPO

Airbnb looks to raise $3B in December IPO
The European Union’s top court backed a Parisian measure that regulates renting second homes on Airbnb. (iStock)

Airbnb hosts in Europe may hit road bump when renting second homes

Airbnb hosts in Europe may hit road bump when renting second homes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...