Passaic, NJ Hotels & Lodging: Transient Occupancy Tax (2026)
Key Facts
- Tax rate
- 3% of room rent
- Who collects
- Hotel/motel operator
- Liability
- Personally liable, § 275-27
- Penalty
- $500 per offense
- Adopted
- Ord. 2513-26, Feb. 3, 2026
Summary
Hotels and motels operating in Passaic must charge guests a 3% municipal occupancy tax on room rent under City Code § 275-24, collect it the same way they collect rent, and remit it to the city. Section 275-27 makes the operator who collects the room charge personally liable for the tax, and the city's Chief Financial Officer must be joined as a party in any lawsuit brought to collect unpaid amounts.
A. There is hereby established an occupancy tax which shall be fixed at a uniform percentage rate of 3% on charges of rent for every occupancy of a short-term rental unit, hotel or motel room or transient accommodation in the City of Passaic that is subject to taxation pursuant to N.J.S.A. 54:32B-3d. [...] The tax imposed by this article shall be collected on behalf of City of Passaic by the person collecting the rent from the hotel or motel or transient accommodation customer. Each person required to collect the tax herein imposed shall be personally liable for the tax imposed, collected or required to be collected hereunder.
Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4978046; v41 updated 2026-07-01; through 07-01-2026).
Full Breakdown
Chapter 275, Article V of the Code of the City of Passaic, adopted February 3, 2026 by Ordinance No. A. 40:48F-1 et seq. A. ' Collection duty falls on whoever collects the room charge from the guest. Section 275-27 provides that 'the tax imposed by this article shall be collected on behalf of City of Passaic by the person collecting the rent from the hotel or motel or transient accommodation customer,' that this person is 'personally liable for the tax imposed, collected or required to be collected,' and that the operator has the same right to collect the tax from the guest as it has to collect the rent itself, payable at the same time.
If the city has to sue to collect unpaid tax, the Chief Financial Officer must be joined as a party to that action. Hotel and motel operators are barred by § 275-26 from absorbing the tax into the room rate or advertising that it is already included, not separately stated, or refundable, each violation, and each day a noncompliant ad runs, is a separate $500 offense. A. 54:32B-9.
Violations & Fines
A hotel or motel that absorbs the occupancy tax into its posted room rate, or advertises that the tax is included, not separately charged, or refundable, violates § 275-26; each offense, and each day the advertisement runs, carries a separate $500 penalty, collectible in an action that must join the city's Chief Financial Officer under § 275-27.
Frequently Asked Questions
What occupancy tax do Passaic hotels and motels charge guests?
Is the hotel operator liable if the tax isn't remitted?
Can a hotel advertise 'tax included, no extra charge'?
Does the city need to sue in its own name to collect unpaid hotel tax?
Sources & Official References
Other rules in Passaic
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