Allocates all revenue from hotel and motel occupancy fee for arts, historical heritage, and tourism purposes.

A1460

ASSEMBLY, No. 1460

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman ANTWAN L. MCCLELLAN

District 1 (Atlantic, Cape May and Cumberland)

Assemblyman ERIK K. SIMONSEN

District 1 (Atlantic, Cape May and Cumberland)

Co-Sponsored by:

Assemblyman Guardian

SYNOPSIS

���� Allocates all revenue from hotel and motel occupancy
fee for arts, historical heritage, and tourism purposes.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
allocating all revenue from hotel and motel occupancy
fee to arts, historical heritage, and tourism purposes, amending P.L.2003,
c.114.�

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 2 of P.L.2003, c.114 (C:54:32D-2)
is amended to read as follows:

���� 2.��� a.�� The Director of the
Division of Taxation shall collect and administer the fee imposed pursuant to
section 1 of P.L.2003, c.114 (C.54:32D-1).� The fees collected shall be
deposited to the General Fund, and shall be allocated as follows:

���� (1)�� of the fees collected
for occupancies during State Fiscal Year 2004: $16,000,000 shall be allocated
for appropriation to the New Jersey State Council on the Arts for cultural
projects; $2,700,000 shall be allocated for appropriation to the New Jersey Historical
Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131
(C.18A:73-22.3); $9,000,000 shall be allocated for appropriation to the
Division of Travel and Tourism in the Department of State for tourism
advertising and promotion; and $500,000 shall be allocated for appropriation to
the New Jersey Cultural Trust; and

���� (2)�� of the fees collected
for occupancies during State Fiscal Year 2005 and thereafter:
[
22.68
]

56.7

percent shall be annually allocated for appropriation to the New Jersey State
Council on the Arts for cultural projects, provided that of the fees collected
for occupancies during State Fiscal Year 2021 and thereafter the amount
allocated shall not be less than $31,900,000;
[
3.84
]

9.6

percent shall be allocated for appropriation to the New Jersey Historical
Commission for the purposes of subsection a. of section 3 of P.L.1999, c.131
(C.18A:73-22.3), provided that of the fees collected for occupancies during
State Fiscal Year 2021 and thereafter the amount allocated shall not be less
than $5,500,000;
[
12.76
]

31.9

percent shall be allocated for appropriation to the Division of Travel and
Tourism in the Department of State for tourism advertising and promotion,
provided that of the fees collected for occupancies during State Fiscal Year
2021 and thereafter the amount allocated shall not be less than $17,600,000;
and
[
.72
]

1.8

percent shall be allocated for appropriation to the New Jersey Cultural Trust,
provided that the amount allocated shall not be less than $720,000.

���� b.��� (1)���� In carrying out
the provisions of section 1 of P.L.2003, c.114 (C.54:32D-1) and this
section, the director shall have all of the powers and authority granted in
P.L.1966, c.30 (C.54:32B-1 et seq.).� The tax shall be filed and paid in a
manner prescribed by the Director of the Division of Taxation. The director
shall promulgate such rules and regulations as the director determines are
necessary to effectuate the provisions of section 1 of P.L.2003, c.114
(C.54:32D-1) and this section.

���� (2)�� Each person required to
collect the hotel and motel occupancy fee shall be personally liable for the
fee imposed, collected, or required to be paid, collected, or remitted under
section 1 of P.L.2003, c.114 (C.54:32D-1).� Any such person shall have the same
right in respect to collecting the fee from that person's customer or in
respect to non-payment of the fee by the customer as if the fee were a part of
the purchase price of the occupancy or rent, as the case may be, and payable at
the same time; provided however, that the director shall be joined as a party
in any action or proceeding brought to collect the fee.

���� For purposes of this
paragraph, "person" includes:� an individual, partnership,
corporation, or an officer, director, stockholder, or employee of a
corporation, or a member or employee of a partnership, who as such officer,
director, stockholder, employee, or member is under the duty to perform the act
in respect of which the violation occurs.

���� (3)�� Notwithstanding any
other provision of law or administrative action to the contrary, transient
space marketplaces shall be required to collect and pay on behalf of persons
engaged in the business of providing transient accommodations located in this
State the tax for transactions obtained through the transient space
marketplace. For not less than four years following the end of the calendar
year in which the transaction occurred, the transient space marketplace shall
maintain the following data for those transactions consummated through the
transient space marketplace:

���� (1)�� The name of the person
who provided the transient accommodation;

���� (2)�� The name of the customer
who procured occupancy of the transient accommodation;

���� (3)�� The address, including
any unit designation, of the transient accommodation;

���� (4)�� The dates and nightly
rates for which the consumer procured occupancy of the transient accommodation;

���� (5)�� The municipal transient
accommodation registration number, if applicable;

���� (6)�� A statement as to
whether such booking services will be provided in connection with (i)
short-term rental of the entirety of such unit, (ii) short-term rental of part
of such unit, but not the entirety of such unit, and/or (iii) short-term rental
of the entirety of such unit, or part thereof, in which a non-short-term
occupant will continue to occupy such unit for the duration of such short-term
rental;

���� (7)�� The individualized name
or number of each such advertisement or listing connected to such unit and the
uniform resource locator (URL) for each such listing or advertisement, where
applicable; and

���� (8)�� Such other information
as the Division of Taxation may by rule require.

The Division of Taxation may audit
transient space marketplaces as necessary to ensure data accuracy and enforce
tax compliance.

���� c.���� The annual
appropriations act for each State Fiscal Year, commencing with fiscal year
2005, shall appropriate and distribute during that fiscal year amounts not less
than the amounts otherwise specified for State Fiscal Year 2005 in paragraph
(2) of subsection a. of this section for the purposes specified in paragraph
(2) of subsection a. of this section.

���� d.��� If the provisions of
subsection c. of this section are not met on the effective date of an annual
appropriations act for the State fiscal year, or if an amendment or supplement
to an annual appropriations act for the State fiscal year should violate the provisions
of subsection c. of this section, the Director of the Division of Budget and
Accounting in the Department of the Treasury shall, not later than five days
after the enactment of the annual appropriations act, or an amendment or
supplement thereto, that violates the provisions of subsection c. of this
section, certify to the Director of the Division of Taxation that the
requirements of subsection c. of this section have not been met.

���� e.���� The Director of the
Division of Taxation shall, no later than five days after certification by the
Director of the Division of Budget and Accounting in the Department of the
Treasury pursuant to subsection d. of this section that the provisions of
subsection c. of this section have not been met or have been violated by an
amendment or supplement to the annual appropriations act, notify each person
required to collect tax of the certification and that the fee imposed pursuant
to section 1 of P.L.2003, c.114 (C.54:32D-1) shall no longer be paid or
collected.

(cf: P.L.2019, c.333)

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill increases the
allocation of revenues from the hotel and motel occupancy fee towards arts,
historical heritage, and tourism purposes from 40 percent to 100 percent.

���� Under current law, the
allocation of 40 percent of hotel and motel occupancy fee revenue is as
follows:

���� 1)��� 22.68 percent to the New
Jersey State Council on the Arts for cultural projects as long as the actual
dollar amount allocated is at least $31.9 million;

���� 2)��� 3.84 percent to the New
Jersey Historical commission for historical heritage purposes, as long as at
least $5.5 million is allocated;

���� 3)��� 12.76 percent to the
Division of Travel and Tourism in the Department of State for tourism as long
as at least $17.6 million is allocated; and

���� 4)��� 0.72 percent to the New
Jersey Cultural Trust as long as the amount is not less than $720,000.

���� Under this bill, 100 percent
of the hotel and motel occupancy fee revenues would allocated as follows:

���� 1)��� 56.7 percent would go to
the New Jersey State Council on the Arts for cultural projects as long as the
actual dollar amount allocated is at least $31.9 million;

���� 2)��� 9.6 percent would go to
the New Jersey Historical commission for historical heritage purposes, as long
as at least $5.5 million is allocated;

���� 3)��� 31.9 percent would go to
the Division of Travel and Tourism in the Department of State for tourism as
long as at least $17.6 million is allocated; and

���� 4)��� 1.8 percent would go to
the New Jersey Cultural Trust as long as the amount is not less than $720,000.