NEWARK, NJ – Visitors staying at hotels in New Jersey’s largest city may soon see an extra $3 charge per night on their bill under a proposal designed to bolster local fire services.
A new bill introduced in the Legislature would impose a daily surcharge on hotel room occupancies in any “city of the first class” that contains an international airport — a definition that applies solely to Newark.
Revenues from the surcharge would be deposited into a dedicated municipal fire services trust fund and used exclusively to support firefighting operations, equipment, and personnel.
Key Points
- The bill adds a $3 daily surcharge to hotel stays in Newark.
- Funds would go to a municipal trust solely for firefighting services.
- Spending on fire service staffing is capped at 37 percent of revenues through 2028.
Dedicated fire fund for city operations
Under the measure, the Division of Taxation would collect the $3-per-room surcharge and distribute the proceeds monthly to the city. The legislation requires that all funds be deposited into a dedicated fire services trust fund, which can only be used for fire department-related purposes such as hiring, training, equipment acquisition, and capital improvements.
To ensure the new revenue supplements rather than replaces existing funding, the city could only appropriate the surcharge revenue if its current-year budget for firefighting services exceeds the prior year’s allocation, excluding previous trust fund revenues.
Spending limits and oversight
The bill caps spending on fire department hiring and retention at 37 percent of surcharge revenues from 2026 through 2028. Beginning in 2029, the Director of the Division of Local Government Services in the Department of Community Affairs would have authority to adjust that percentage based on need and fiscal conditions.
Lawmakers included these restrictions to maintain a balance between personnel costs and investments in training, safety equipment, and infrastructure.
Administration and enforcement
The Division of Taxation in the Department of the Treasury would administer and enforce the surcharge, using the same powers it holds under the state’s Sales and Use Tax Act. Revenues would be certified monthly and paid to the city upon verification.
The act would take effect on the first day of the second month after enactment, allowing time for hotels to update billing systems and for the state to establish reporting procedures.
Legislative intent
Sponsors say the proposal aims to provide Newark’s fire department with a stable, locally generated source of funding tied to the city’s hotel and tourism economy. With Newark Liberty International Airport and major downtown hotels hosting millions of visitors annually, officials expect the measure could yield several million dollars a year in dedicated support for emergency services.
If enacted, the surcharge would position Newark as the only city in New Jersey with a hotel occupancy fee specifically earmarked for fire protection — an approach lawmakers describe as both fiscally responsible and directly beneficial to public safety.