Transient Occupancy Tax

Rates
For the privilege of occupancy in any hotel, each transient is subject to and shall pay a tax on the rent charged by the operator.

  • Borough Rate: 4%
  • City Rate: 7%
  • Saxman Rate: 7%
Operator Collection
Each operator shall collect the tax imposed by this chapter to the same extent and at the same time as the rent is collected from every transient. If the operator fails to collect the tax imposed by this chapter, the operator shall be liable for the tax jointly and severally with the transient. The amount of tax shall be separately stated from the amount of rent charged, and each transient shall receive a receipt for payment from the operator.

Filing & Payment of Tax
The tax levied by this title is due and payable at the expiration of each quarter of each calendar year. It is the duty and responsibility of every seller liable for the collection of any tax imposed herein, to file with the Borough upon forms prescribed and furnished by the Borough.

The completed return, together with remittance in full for the amount of tax due, shall be transmitted to and received by a Borough employee working in the Finance Department on or before 5:00 p.m.. local time, on the last day of the month succeeding the end of each said quarter.

Failure to File
Failure to receive a transient occupancy tax return or billing shall not relieve the seller from its obligation to timely remit all sales taxes. Merchants are responsible for obtaining the proper forms in ample time to report and remit within the time indicated by the ordinance.

Reporting is Required
Any person who filed or should have filed a transient occupancy tax return for the prior quarter shall file a return even though no tax may be due. This return shall show why no tax is due, or, if the business is sold, than the person to whom it was sold, the date it was sold, and the address and telephone number of the person to whom it was sold.

Exemptions
Some record of sales tax exemptions include:
  • Casual or isolated rentals of rooms in a single family dwelling such as a sublet of a room or rent sharing agreement are not taxed.
  • Not imposed on rents of less than $3.00 per day.
  • Rentals to federal, state of local government agencies, and their instrumentality when paid directly by said agency.
  • Senior citizens are not exempt from Transient Occupancy Tax