Short-term rentals in Elizabeth, explained properly.

Sec. 5.90.020(B) states the exclusion. We haven't reviewed chapter 5.70 (rent control) of the City Code yet, so which units it covers is not shown here.

Sec. 5.90.040(C)(4) lists the letter among the items the owner provides at the same time as the license application. Other attachments are proof of current ownership, proof of general liability insurance of at least $500,000.00 and written certifications from the property agent and responsible party that they will perform their duties.

Sec. 5.90.030(D). An applicant who fails either inspection has sixty (60) days to remove, correct or abate the violations; if they are not corrected within 60 days the applicant must resubmit a new application and annual fee. A license is issued only after all outstanding violations have been abated (Sec. 5.90.050(D)). The license and the rental certificate of occupancy are renewed annually (Sec. 5.90.030(E)).

Sec. 5.90.030(B) bars transfer or assignment and use at any other property location or dwelling unit. Sec. 5.90.030(G) says the license expires automatically on a change of ownership and a new initial application and first-time registration fee are needed if the new owner intends to use the property as a short-term rental. A new application and first-time fee are also needed for any short-term rental whose license was revoked.

Sec. 5.90.040(C)(2).

Sec. 5.90.020(C)(3). The primary occupant may have guests under 21 who share the property. The primary occupant and the owner are both liable where the property is not occupied by at least one adult over 21 during the rental.

Sec. 5.90.020(C)(2). Sec. 5.90.020(C)(1) adds that the use must not materially disrupt or adversely affect the residential character of the neighborhood, must not become a nuisance to adjoining residents, and its impact should be no greater than that of a private home with guests.

Sec. 5.90.040(B)(7)-(8). The application lists the number and location of legal off-street parking spaces and on-street spaces directly adjacent to the premises, and the owner certifies that every effort will be made to avoid or mitigate on-street parking problems.

Sec. 5.90.040(D). No sign identifying the short-term rental use and no identification of the use on any mailbox is permitted (Sec. 5.90.020(C)(4)).

Sec. 5.90.040(E). The information goes on a form made available by the bureau of central licensing or in electronic format on the City website. The application also lists a seven-day, 24-hour contact for the owner (Sec. 5.90.040(B)(5)).

Sec. 5.90.050. The business administrator or designee hears and decides the appeal within thirty (30) days. The chief license inspector investigates whether the statements in the application are true and whether all city taxes, real and personal, have been fully paid (Sec. 5.90.040(F)).

Sec. 5.90.060(D). The chief license inspector, fire official or law enforcement enforce the chapter (Sec. 5.90.060(A)).

Sec. 5.90.060(B)-(C). The listed grounds are fraud, misinterpretation or false statement in the application or in renting, operating or advertising, and failure to remediate a danger that makes the property unsafe, unsanitary or unfit for human habitation within a reasonable time. The text says a violation is for a time not less than one (1) year, during which the licensee cannot apply for a new license, except that for the unsafe-condition ground the chief license inspector may revoke permanently. The hearing is held within ten (10) days of the request and decided by the business administrator or designee; with no request, the license is automatically revoked ten (10) days after the notice.

The Division of Taxation page on hotel and motel occupancies says New Jersey imposes sales tax on hotel and motel occupancies at a current rate of 6.625% (page last updated 04/07/26, no effective date shown). The Division's Tax Topic Bulletin S&U-13 (rev. 3/23) says it does not address transient accommodations and points to a separate bulletin on them, which was not read for this layer. The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says P.L. 2018, c. 49 and P.L. 2019, c. 235 amended the hotel and motel occupancy fee law to implement sales tax and the State Occupancy Fee on a transient accommodation obtained through a transient space marketplace, or one that is a professionally managed unit. The notice defines a professionally managed unit as a unit that is directly or indirectly owned or controlled by a person offering for rent two or more other units during the calendar year. Because the rate for transient accommodations is not stated on a page that addresses them, this is marked for review. Booking-platform collection is covered in a separate row.

The Division of Taxation's State Occupancy Fee page says the fee is 5% of charges for the rental of hotel and motel rooms that are subject to sales tax, in addition to sales tax and any municipal occupancy tax, and is imposed at a lower rate in cities where hotel and motel occupancies are already subject to a local tax: 1% in Atlantic City, Elizabeth, Newark and Jersey City, and 3.15% in the three Wildwoods. The fee is imposed directly on the occupant and must be shown on the bill as "New Jersey State Occupancy Fee". It is not imposed on an occupancy of at least 90 consecutive days (the permanent resident exemption), on assembly space, or on qualifying government occupants. Bulletin S&U-13 (rev. 3/23) gives the same rates for hotels. The Department of Community Affairs' Local Finance Notice 2026-09 says the State Occupancy Fee applies to transient accommodations obtained through a transient space marketplace or that are professionally managed units; the fee page and bulletin read here describe hotel and motel rooms, so how the rates apply to a short-term rental is marked for review. The fee page was last updated 09/22/25 and shows no effective date for its rates.

The Department of Community Affairs' Local Finance Notice 2026-09 (April 7, 2026) says municipalities that allow short-term rental of transient accommodations are authorized to impose a municipal occupancy tax not to exceed 3% on those transactions, except Newark, Elizabeth, Jersey City, Paterson, Atlantic City, Wildwood, Wildwood Crest and North Wildwood, which are authorized to apply separate hotel or tourism-related statutory taxes to transient accommodation rentals. The notice says the municipal tax applies only to transient accommodations obtained through a transient space marketplace or that are professionally managed units, and that leases of real property with a term of at least 90 consecutive days are not transient accommodations. A new or amended ordinance must be transmitted to the Division of Taxation and does not take effect until 90 days after it is transmitted. The tax must be collected by the person collecting rent from the customer. Tax Topic Bulletin S&U-13 gives the same 3% ceiling and the same list of excluded cities for hotel occupancies. Each municipality's own tax is on its page.

Local Finance Notice 2026-09 (April 7, 2026) of the Department of Community Affairs, Division of Local Government Services, says rental of short-term transient accommodations is largely subject to municipal ordinance and quotes N.J.S.A. 40:52-1(n) as authorizing municipalities to issue licenses for rental of real property "for a term less than 175 consecutive days for residential purposes by a person having a permanent place of residence elsewhere". License amounts are to be adopted by the governing body as part of the municipal fee ordinance. The notice adds that many municipalities have adopted ordinances authorizing and regulating short-term rentals through online marketplaces such as Airbnb and VRBO. The statute itself was not read; its wording is taken from the notice. Each municipality's own rules are on its page.