WSJ- Newark, Airbnb agree on 6% tax, same as hotels
Newark is poised to become the second city in New Jersey to collect taxes from Airbnb Inc., which previously operated unregulated in the state's most populous city.
With Newark Mayor Ras Baraka announcing an agreement with Airbnb to pay the same tax as hotels in the city, Newark becomes the second New Jersey city to embrace the sharing economy. This is another step for Airbnb as they continue to work towards acceptance and regulation of online home rentals.
Just like Jersey City Mayor Steven Fulop stated when he announced his plan to regulate and tax Airbnb, Mayor Ras Baraka is recognizing the benefits the city of Newark and its residents will enjoy with additional revenue that the new tax will generate. Both Newark and Jersey City estimate they will collect around $750,000 in tax revenue this year alone, with expectations that the number will grow as people recognize the benefits of legally renting out their homes on Airbnb.
These regulations are obviously great news for proponents of the sharing economy such as ourselves at MetroButler. Regulation is key for continuing growth of the industry and allows companies that service the sharing economy to help with that growth.
MetroButler allows for turn-key solutions to becoming an Airbnb host. Our services are the perfect option for new people to get involved in the sharing economy and make some much needed supplemental income. Regulation is the first step to getting people off the fence about utilizing Airbnb and MetroButler services is the nudge that makes it a reality.