After a protracted fight over how much Newark should regulate the short-term rental industry dominated by Airbnb, the city council passed a set of tighter measures last year making it harder for those who want join in the shared economy.
But four months after the last new rule was approved in September, Airbnb hosts say they’re still waiting for direction on how to proceed. It’s not clear when the new taxes will kick in or how the permitting process will work.
Although the slow season has kicked in, many are continuing business as usual.
“We don’t make enough money to pay double insurance and to pay extra taxes. We don’t make that kind of money,” said Airbnb host Deborah King. “It’s going to hit us hard.”
Newark’s corporation counsel did not immediately respond to questions about what the city’s implementation plan looks like.
A spokeswoman for Airbnb said the company will be educating hosts as information becomes available. She referred to an August statement the company made in response to the proposed ordinances.
“We have a number of concerns about the impact they will have on our local host community, jeopardizing the economic opportunities that short-term rentals have created citywide," the statement said.
Newark’s clamp down comes after Jersey City also imposed stricter measures on the industry. To rent out a room or apartment through Airbnb, Newark now requires hosts to own the residence and pay a $250 short-term rental permit.
There will be a 6% hotel occupancy tax on charges for all short-term rentals and properties in the city’s tourism improvement district will be taxed an additional 1.5% tax that is also paid by hotels.
Additionally, rental properties cannot have more than two verified incidents with police in the last two years, have any open code enforcement violations or unpaid water and sewer bills.
“Airbnb was a God send for us because we had a couple of situations in the family and that extra income kept me housed,” host Gary Foote said. “If you’re paying your taxes, no one should be able to come into your home and tell you how to live your life.”
Karen Yi may be reached at kyi@njadvancemedia.com. Follow her on Twitter at @karen_yi or on Facebook.
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