3 Replies Latest reply: Oct 5, 2019 8:20 AM by timthek RSS

    How will VRBO handle the NJ sales tax repeal?

    cathyfreeman New Member

      Apparently, if an owner has 2 or less properties, the tax is not applicable. But the owner has to collect fees directly. Can anyone confirm this? Will VRBO allow direct pay to owners again in order to prevent this prohibitive tax from being applied to renters?

        • Re: How will VRBO handle the NJ sales tax repeal?
          linky17 Active Contributor

          Will you cite and/or share link(s) to "the NJ sales tax repeal?" that prompted this post?


          I'm in the mid-West, but we have a family rental on The Shore.


          Thanks, and welcome to this forum

            • Re: How will VRBO handle the NJ sales tax repeal?
              timthek Active Contributor

              On August 9th, Governor Murphy signed a bill adding an exemption to the tax for individual homeowners who rent "directly" to guests. Basically it was designed to allow people with repeat renters to avoid charging the tax. Under the new law, only transactions that are paid through a 3rd party and contracted through a 3rd party, are now taxable. So VRBO, Booking, AirBnB, Travel Agents....anyone who collects the payment and 'contract' are taxable. The only exemptions are long term rentals (over 90 days), Realtor-brokered transactions, and "direct" rentals. The exemption does not apply to owners of 3 or more units as the state considers them "professionally managed" and their rentals are taxed. It's kind of a jumbled mess thanks to special interest groups.


              Anyway, online "listing sites" that don't collect rent or get involved in the contracts are exempt, as are personal bookings, rentals arranged through Facebook or anything similar.

            • Re: How will VRBO handle the NJ sales tax repeal?
              timthek Active Contributor

              cathyfreeman VRBO will NOT do anything and transactions on the site will continue to be taxed. Why would you expect them to go "back" to allowing owners to collect money outside their system after spending years pushing us all onto their payment processor? No. NJ rentals through VRBO will remain taxed and VRBO will continue to collect and remit it to the state.

              All you can do is move your rentals off VRBO onto an alternative or try to get more direct bookings. VRBO went from doing over 90% of my bookings 3 years ago to booking 4 nights total for 2019.  You can escape if you want.  What town is your rental in?