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Bayonne, NJ Hotels & Lodging: Transient Occupancy Tax (2026)

Some Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Tax rate
6% of room charge
Collector
City Business Administrator
Payment
Quarterly, tied to property tax dates
Exemption
Licensed rooming/boarding houses
Penalty
Up to $1,250 fine per offense
Stacks with
State Sales and Use Tax

Summary

Bayonne charges a 6% hotel and motel occupancy tax on room charges under City Code Section 10-5.1, layered on top of state sales tax and property taxes. The Business Administrator collects it quarterly, vendors may not absorb or advertise away the tax, and licensed rooming and boarding houses are exempt.

There is hereby imposed a 6% on charges for the use or occupation of rooms in hotels as authorized by the "Hotel and Motel Occupancy Tax Act," N.J.S.A. 40:48E-1, et seq., as amended in 2006 by N.J.S.A. 40:48E-e. This tax shall be in addition to any and all real estate (ad valorem) taxes or services charges; the tax imposed by the "Sales and Use Tax Act," N.J.S.A. 54:32B-1 et seq.; or any other fee, charge or tax imposed by law. ... The penalty for violation of the foregoing provisions shall be a fine not exceeding $1,250, a term of imprisonment not exceeding 90 days or a period of community service for a period not exceeding 90 days, or any combination thereof, for each offense.

Full Breakdown

Section 10-5.1 imposes a 6% tax on charges for the use or occupation of hotel rooms, authorized by the state Hotel and Motel Occupancy Tax Act, N.J.S.A. 40:48E-1 et seq. as amended by N.J.S.A. 40:48E-e in 2006. The tax stacks on top of real estate taxes, the state Sales and Use Tax and any other fee or tax already owed, per Section 10-5.2, and applies in addition to any other tax imposed on hotel occupancy by any governmental entity. Section 10-5.3 exempts any rooming or boarding house licensed under the state Rooming and Boarding House Act of 1979.

Under Section 10-5.4 the Business Administrator collects the tax in quarterly installments timed to real property tax due dates, and the City expressly intends to collect both real estate taxes and the hotel tax in full, with no credit or refund against other taxes. The purchaser, not the hotel, ultimately bears the tax: a vendor may not assume or absorb it, and each assumption or improper advertisement is a separate offense. Section 10-5.5 makes the person who collects room rent personally liable for the tax, with the same collection rights as for rent itself. Section 10-5.6 requires the City to send a copy of the ordinance to the State Treasurer and to every hotel or motel in Bayonne.

Violations & Fines

Section 10-5.4 penalizes a vendor who assumes, absorbs or advertises that it will absorb the tax, or that the tax won't be separately charged or will be refunded: each such representation or advertisement is a separate offense for every day it continues. The penalty is a fine up to $1,250, up to 90 days imprisonment, up to 90 days of community service, or any combination, for each offense.

Frequently Asked Questions

What is Bayonne's hotel occupancy tax rate?
City Code Section 10-5.1 imposes a 6% tax on charges for occupying a hotel or motel room in Bayonne, authorized by the state Hotel and Motel Occupancy Tax Act. It applies on top of the state Sales and Use Tax and any real estate taxes already owed on the property.
Can a hotel absorb the tax instead of charging guests?
No. Section 10-5.4 requires the purchaser to pay the tax and bars a vendor from assuming or absorbing it, or advertising that the tax won't be separately charged. Each violation, and each day an improper advertisement runs, counts as a separate offense punishable by up to a $1,250 fine.
Are boarding houses subject to the hotel tax?
No. Section 10-5.3 exempts any rooming or boarding house that is licensed and regulated under the state Rooming and Boarding House Act of 1979 from Bayonne's 6% hotel and motel occupancy tax entirely, since that lodging is already licensed and regulated under a separate state framework rather than as transient hotel or motel space.
Who collects and remits the hotel tax in Bayonne?
The City's Business Administrator collects the 6% tax in quarterly installments due on the same dates as real property tax payments, under Section 10-5.4. The person collecting rent from the hotel or motel customer is personally liable for the tax under Section 10-5.5.

Sources & Official References

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