Parsippany-Troy Hills, NJ Hotels & Lodging: Transient Occupancy Tax (2026)

Chapter 370, Article I of the Parsippany-Troy Hills Township Code was adopted 8-12-2003 as Ord. No. 03:26 to implement P.L. 2003, c. 114. Section 370-1 explains the enabling law: a municipality could impose a uniform percentage tax on charges of rent for hotel room occupancies not exceeding 1% for occupancies from July 1, 2003 to July 1, 2004, and not exceeding 3% on and after July 1, 2004. Section 370-2 adopts exactly that ladder. The tax is fixed at a uniform 1% on charges of rent for every occupancy of a hotel or motel room in the Township of Parsippany-Troy Hills from July 1, 2003 to July 1, 2004, and 3% for occupancies on or after July 1, 2004, applied to rooms in a hotel or motel subject to taxation under the state sales tax provision cited in the ordinance.

It sits on top of any other tax or fee imposed by statute or local ordinance or resolution by any governmental entity on hotel room occupancy. Since a 2019 amendment, Ord. No. 2019:64, unpaid taxes bear interest at 5% per annum. Section 370-3 sets the collection rules required by P.L. 2003, c. 114. The purchaser pays the tax, a vendor cannot assume or absorb it, and a vendor cannot advertise or hold out that the tax will be absorbed, will not be separately charged and stated to the customer, or will be refunded.

Each absorption is a separate offense, each day of a prohibited advertisement is a separate offense, and the penalty is $1,000 for each offense. Under § 370-4 the person collecting the rent collects the tax on behalf of the Township and is personally liable for the tax imposed, collected or required to be collected, and the Chief Financial Officer of the Township must be joined as a party in any action to collect it. The article speaks only of hotel and motel rooms. It does not mention short-term rentals or home-sharing.