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According to New Jersey Spotlight, just a year after a tax on short-term property rentals was signed into law, it is being modified to ease concerns that it was taking too much of a cut out of the Jersey Shore’s summer rental market.

The new tax revision that went into effect last week will now protect certain property rentals from being subject to the state’s “transient accommodations tax.” The new revision will especially help transactions at the Jersey Shore where direct rental agreements are common. The revision exempts direct transactions like these that don’t use an online marketplace from being subject to the tax.

The law signed last year by Governor Phl Murphy was an attempt to place similar taxes on rentals through Airbnb and Vrbo as are already on New Jersey’s hotels and motels. These rapidly growing online marketplaces are growing quickly and are direct rivals to hotels and motels. The new revision will help rental business in Jersey to continue to grow while still taxing these online marketplaces.

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