This bill amends the New Jersey Transfer Inheritance Tax Act to eliminate the transfer inheritance tax for step-grandchildren, aligning their treatment with that of stepchildren and grandchildren. Specifically, it modifies R.S.54:34-2.1 to classify step-grandchildren as Class A beneficiaries, which means they will not be subject to any transfer inheritance tax. The current law treats step-grandchildren as Class D beneficiaries, imposing a tax rate of 15% on property transfers up to $700,000 and 16% on amounts exceeding that threshold.

The proposed changes will ensure that step-grandchildren receive the same tax exemptions as stepchildren and biological grandchildren, thereby promoting equity in property transfers. The bill will take effect on January 1, 2025, and will not provide refunds for any taxes paid prior to this date.