The NJ Governor signed a law into effect that rescinds and replaces a law that took effect in October 2018 to require property owners and Online Travel Agencies (OTAs) to collect and remit sales and room/hotel taxes. But what is interesting about the replacement law is that "direct bookings" are exempt from taxes!
The OTAs, such as Airbnb, Vrbo, and others, must collect and remit state and local taxes. Guests around the world are learning about how OTAs such as Airbnb, Vrbo, TripAdvisor, and HomeAway are taking advantage of guests and property owners with exorbitant and increasingly higher service and booking fees. Under this NJ law, the financial reasons to book direct now make even more sense!
Book Direct in NJ. Save the OTA fees (5% - 20%), AND save the taxes (nearly 12% in Cape May County, NJ)! Now THAT is a vacation savings!
EXCEPTION: The exception to the OTA's tax requirement is for property owners and managers who are "integrated" with the OTAs (like us). At Dreams Come True Cottage, we manage all of our reservations on our own, so we are integrated with some OTAs. Therefore, within the bounds of this law, and its current interpretation, booking our property on Vrbo allows us to exempt our guests from taxes!
Here is an article, explaining the law, signed into law in Aug 2019:
https://www.nj.gov/governor/news/news/562019/approved/20190809a.shtml
Safe travels, no matter where your Direct Booking takes you!
Follow us on Houfy.com to see all the greatest travel tips and tricks in our neck of the woods!
If you're ready for your next getaway, visit WanderingWayRetreats.com.
Are you interested in our traveling adventures and more? Visit our blog HERE. Please read, enjoy, and subscribe!
