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

The Township Council created the tax in Chapter 3, Article X (Department of Finance), § 3-68(D). The code fixes a uniform percentage rate on charges of rent for every occupancy of a hotel or motel room in the Township of East Brunswick: 1% for occupancies on or after July 1, 2003 but before July 1, 2004, and 3% for occupancies on or after July 1, 2004. The tax applies to rooms in a hotel subject to sales tax under N.J.S.A. 54:32B-3, subsection (d) of section 3, and the ordinance names it the Hotel and Motel Room Occupancy Tax and Transient Accommodations. It is stated to be in addition to any other tax or fee imposed by statute, local ordinance or resolution by any governmental entity on the occupancy of a hotel room, so the local tax stacks on top of state charges.

The purchaser pays. Section 3-68(D)(4) says all taxes imposed by the chapter are paid by the purchaser, and a vendor may not assume or absorb the tax. A vendor also may not advertise or hold out, directly or indirectly, that the tax will be absorbed, that it will not be separately charged and stated to the customer, or that it will be refunded. Each assumption or absorption is a separate offense, and each representation or advertisement for each day it continues is a separate offense.

Collection falls on the person who collects the rent from the hotel or motel customer. Under § 3-68(D)(5) that person is personally liable for the tax imposed, collected or required to be collected. The collector has the same right to collect the tax from a customer as if it were part of the rent and payable at the same time. In any action or proceeding to collect the tax, the chief financial officer of the Township must be joined as a party.

Short-term rentals are handled in Chapter 182. Section 182-5(H) says that when each short-term rental ends or there is a change of occupancy by transient occupants, the STRP owner, in addition to the state sales tax and state occupancy fee, is subject to a 3% municipal occupancy tax, pursuant to N.J.S.A. 40:48F-1 et seq. That subsection applies only to short-term rentals obtained through a transient space marketplace or a professionally managed unit. The Department of Planning & Engineering takes the short-term rental permit applications.