Passaic County, NJ does not license short-term rentals. New Jersey requires hosts using a marketplace (Airbnb, Vrbo) or professionally managed units to collect 6.625% State Sales Tax and the State Occupancy Fee under P.L. 2018 c. 49 (effective Oct. 1, 2018, amended by P.L. 2019 c. 235). Paterson currently has no specific STR ordinance but requires landlord registration; other Passaic towns set their own rules.
Short-term rental regulation in Passaic County operates on three layers, none of them at the county level. State tax layer: P.L. 2018 c. 49 (effective October 1, 2018) extended NJ Sales Tax (currently 6.625%) and the State Occupancy Fee (5% statewide) to transient accommodations rented through a transient space marketplace or operated as a professionally managed unit. P.L. 2019 c. 235 narrowed the definition so that direct owner rentals of fewer than three units (booked without a marketplace and not professionally managed) are exempt from State Sales Tax and the State Occupancy Fee. Marketplaces such as Airbnb and Vrbo are required to collect and remit the tax on the host's behalf when used. Municipal tax layer: under N.J.S.A. 40:48F-1 et seq., NJ municipalities may impose a Municipal Occupancy Tax of up to 3% on transient accommodations. Permit/zoning layer: each Passaic County municipality decides whether to require an STR permit, registration, or rental license. As of 2024-2025, Paterson does not have a specific short-term rental ordinance; however, all residential rental properties in Paterson are subject to the city's rent control ordinance and require annual rent-roll registration with the Department of Property Maintenance by September 1. Wayne, Clifton, Passaic, and other towns have varying rental-license requirements under N.J.S.A. 40:55D and the NJ Hotel and Multiple Dwelling Law (N.J.S.A. 55:13A-1 et seq.). Passaic County itself issues no STR permits.
Failure to register with the NJ Division of Taxation and collect/remit State Sales Tax and the State Occupancy Fee on a taxable transient accommodation is a violation of N.J.S.A. 54:32B-2 and N.J.S.A. 54:32D-1 et seq. Penalties include back taxes, interest, and civil penalties up to 25% of tax due. Operating without a required municipal rental license violates the local ordinance and N.J.S.A. 40:49-5 (penalty up to $2,000 and 90 days). Marketplaces that fail to collect under P.L. 2018 c. 49 are themselves liable for the uncollected tax.
See how Passaic County's permit requirements rules stack up against other locations.
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