Good News! Because NO payments are exchanged on VRLBI’s website between owner and guest, VRLBI is NOT required to collect and remit the Sales Tax, the State Occupancy Fee, or any other related applicable tax, assessment, or fee on behalf of an owner!
Unfortunately, there is a Real Estate Broker on LBI who has wrongly included VRLBI in a group of online booking sites such as Homeaway and Airbnb in their marketing material to vacation rental owners. “VRLBI is NOT and ‘online booking site’ we are an ‘advertising website’ that provides a platform for Owners and Realtors to market their listings to vacationers searching for vacation rentals on Long Beach Island”, says Duane Watlington, Founder VRLBI.
The defining factor, in determining if the taxes have to be paid to the state, is based on who issues the rental contract, collects the payments, and hands out the keys. NOT where you advertise your rental property! If you use an online site that requires you to take “online bookings” (like Homeaway, AirBnB, VRBO, Trip Advisor, etc.) than any rentals booked (solely consummated through the transient space marketplace) are subject to the tax.
While VRLBI is considered a “Transient Space Marketplace” because NO payment is made on their site between owner and renter, the transactions are not deemed to be “solely consummated through the transient space marketplace”. Therefore, VRLBI is not required to collect and remit Sales Tax, the State Occupancy Fee, or any other related applicable tax, assessment, or fee on behalf of an owner.
Under the current NJ Law, the ONLY way an owner can avoid charging his guests the tax, is if he engages a local Real Estate Broker to issue the rental contract, collect the payment, AND hand out the keys. VRLBI has partnered with several brokers on LBI to offer this service for as little as 5%! If you would like to learn more about the programs offered by our Realtor Partners, please contact [email protected] for complete details.
VRLBI is committed to providing the BEST online marketing channel for owners and vacationers to find each other. We have the largest selection of vacation rentals on LBI and the BEST online platform for finding your next home to rent on Long Beach Island!
For more on the fight to eliminate The Shore Tax, visit www.NJShoreTax.com