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

Township Code § 311-4, adopted March 27, 2007 by Ord. No. A. on charges of rent for every occupancy within a hotel or motel, at a rate of 3%, on top of any other state or local taxes and fees already applying to the room. The chapter defines "hotel" broadly to include motels, bed-and-breakfasts and inns, meaning a building regularly used and kept open for lodging guests. Under § 311-5, the tax is legally owed by the occupant, defined as anyone who for consideration uses or has the right to use a room under any lease, license, permit or similar arrangement, and the hotel or motel owner or booking party is barred from absorbing the tax themselves or advertising that the tax will not be separately charged or will be refunded.

Section 311-6 makes the person who actually collects the rent, whether the owner, manager, salesperson or other employee, responsible for collecting the tax on the Township's behalf, and that collector is personally liable for the tax under Subsection B. Under § 311-7, the collector must forward the prior month's collected tax to the Director of the Division of Taxation in the state Treasury Department by the 28th of each month and file a monthly return, after which the Director certifies collections by municipality and the State Treasurer distributes the Township's share back on a quarterly or more frequent basis.