Elizabeth, NJ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Hotel/transient accommodation rent tax
- 3% under Ch. 3.40
- Hotel use and occupancy tax
- 6% under Ch. 3.41
- Legal basis
- P.L. 2003, c.114 and N.J.S.A. 40:48E-1 et seq.
- Remittance schedule
- Quarterly to chief financial officer
- Fine range for violation
- $100 to $1,250 per offense
- Jail exposure
- Up to 90 days per offense
Summary
Elizabeth taxes hotel and transient accommodation rent at 3 percent under Chapter 3.40, and separately taxes hotel room use and occupation at 6 percent under Chapter 3.41. The two taxes stack on top of state sales tax and any real estate taxes owed.
3.40.020 - Established. There is established a tax in the City of Elizabeth which shall be fixed at three (3) percent on charges of rent for every occupancy of a hotel or transient accommodation room or rooms in the City of Elizabeth subject to taxation pursuant to N.J.S.A. 54:32B-3.
3.41.020 - Tax imposed. There is imposed a six (6) percent tax on charges for the use or occupation of a room or rooms in a hotel or transient accommodation as authorized by the "Hotel Occupancy Tax Act" N.J.S.A. 40:48E-1, et seq.
3.41.021 - Other taxes. The tax imposed by this chapter shall be in addition to any other tax or fee imposed pursuant to any federal law, state statute, local ordinance including...the taxes established in Chapter 3.40 of the Code of the City of Elizabeth.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 31).
Full Breakdown
L. 2003, c. A. 54:32B-3. A. 54:32B-2(j) definition, including apartment hotels, motels, inns, and rooming or boarding houses, while carving out most short-term rental style stays under the state's transient accommodation exclusions. A. 40:48E-1 et seq. 40 tax, real estate ad valorem taxes, service charges and sales taxes; the city states its express intent to collect both hotel taxes in full alongside real estate taxes. 030. 040 may not absorb the tax themselves or advertise that they will absorb it, and each such misrepresentation is a separate offense for every day it continues.
Violations & Fines
Section 3.40.060 sets the penalty for a Chapter 3.40 violation by cross-reference to Code Chapter 2, Section 7: up to 90 days in the county jail, a fine of not less than $100 nor more than $1,250, up to 90 days of community service, or any combination, with each day a violation continues counted as a separate offense. Section 3.40.040 also makes absorbing or misadvertising the tax a separate daily offense.
Frequently Asked Questions
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Sources & Official References
Other rules in Elizabeth
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