|I am sorry to say that I have bad news. The Division of Taxation just posted a revised TB81 that did NOT exempt the for rent by owners from the tax. Last week they removed the advisory and we thought the reason was to include rent by owners on the exemption granted to the Realtors. Instead, it appears that they closed the “key” loophole that some were planning to use. Here is the new advisory:
So basically, the way I read this is that ALL rentals are now taxable. The only exemption is if a Realtor prepares the lease, collects the payments, and hands out the keys. In fact, handing out the keys or codes is now a requirement and it MUST be done at the Realtor’s office. Going to be some busy parking lots next summer!
BUT WE ARE NOT DONE!
I just heard from Assemblyman DeAngelo’s Chief of Staff regarding this change. She informed me that Asm DeAngelo has signed on as second prime sponsor to Assembly Bill 4520 (Excludes Transient Accommodations in Shore Counties from various state and local taxes) with Asm McKeon that was introduced yesterday to address this issue. It is up to Assembly Speaker Coughlin to move the bill to an issue committee where the chairman will consider posting the bill.