🎯 STRisker: Bulletin - Seaside Heights, NJ

A Deep Dive into Your Area’s STR Updates—Helping You Navigate the Ever-Changing Rental Landscape.

Seaside Heights Finally Moves to Collect Short-Term Rental Taxes

In Seaside Heights, short-term rentals have taken off—but until now, the taxes haven’t followed. That’s about to change.

Although the borough passed a 3% tax on short-term rentals (STRs) back in 2023, officials haven’t been able to collect a dime from platforms like Airbnb, VRBO, or other digital rental services.

This summer, however, marks a turning point: the borough is joining forces with the New Jersey Department of Taxation to finally enforce the tax and recapture vital revenue.

Historically, Seaside Heights funded essential summer services—like public safety, trash collection, and maintenance—through a 3% hotel and motel occupancy tax. But as motels were torn down in favor of townhomes and condos, the local hospitality model changed. Travelers now flock to short-term rentals, but the town had no practical way to make sure those stays were taxed.

“Visitors pay online, and the money goes straight to the hosts,” said Mayor Anthony Vaz. “There’s been no way for us to ensure that the 3% is collected—or even passed on.”

By submitting a copy of Chapter 110—the borough’s ordinance covering the STR tax—to the Department of Taxation, Seaside Heights will trigger a state-level mechanism. From there, state officials notify platforms like Airbnb and VRBO that they are required to add the 3% local tax at checkout, just like they already do for state sales taxes.

Once collected, the state sends the money back to the borough with a breakdown of how much revenue came from each property.

“This makes enforcement fair and transparent,” said Borough Administrator Anthony Vaz. “Unlike the old hotel model, we’ll now have visibility into STR income, which helps level the playing field.”

Neighboring Point Pleasant Beach has already navigated this process, and their collaboration helped Seaside Heights push the plan forward. Implementation is expected in time for the 2025 Summer Season.

Importantly, the ordinance makes clear that the renter—not the property owner—is responsible for paying the tax. This change ensures property owners aren't burdened with handling tax collection themselves.

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