This bill amends existing laws regarding the fees and taxes imposed on certain real property transfers in New Jersey. It raises the threshold for the imposition of a one percent Mansion Tax from $1 million to $1.5 million for various property transactions, including residential, commercial, certain farm properties, and cooperative units. Additionally, the tax on transfers of controlling interests in entities that own classified real property is also adjusted to the same threshold of $1.5 million. Both thresholds will be subject to annual adjustments based on the Consumer Price Index, ensuring that they keep pace with inflation.

The bill mandates that the Director of the Division of Taxation in the Department of the Treasury will determine and publish the adjusted threshold amount by May 1 of each year, based on the percent change in the Consumer Price Index over the preceding 12-month period. The Consumer Price Index is defined as the average annual increase for urban consumers in the New York City and Philadelphia metropolitan statistical areas, as reported by the U.S. Department of Labor. This legislative change aims to alleviate the financial burden on property transactions by increasing the threshold for tax imposition and linking it to inflation.

Statutes affected:
Introduced: 46:15-7.2, 54:15C-1