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

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

View official code

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

How much hotel tax does Elizabeth charge?
Elizabeth charges two stacked local taxes: a 3 percent hotel and motel room occupancy tax under Code Section 3.40.020, and a separate 6 percent hotel use and occupancy tax under Section 3.41.020. Both apply in addition to state sales tax and any other taxes owed on the room.
Do short-term rentals like Airbnb pay Elizabeth's hotel tax?
The code defines a taxable 'hotel' using the state definition at N.J.S.A. 54:32B-2(j) and 40:48E-2, and separately excludes many 'transient accommodation' arrangements, including certain unhosted private residential rentals booked through an offsite licensed real estate broker, from the definition used in these chapters.
Who collects and remits Elizabeth's hotel taxes?
Under Sections 3.40.050 and 3.41.030, the person collecting rent from the hotel or motel customer must collect the tax on the city's behalf and remit it quarterly to the chief financial officer, along with the sales tax reports used to verify the amount submitted.
What is the penalty for not paying Elizabeth's hotel occupancy tax?
Section 3.40.060 ties the penalty to Code Chapter 2, Section 7: up to 90 days in jail, a fine between $100 and $1,250, up to 90 days of community service, or a combination, and each day a violation continues is treated as a separate offense.

Sources & Official References

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