This bill amends existing laws regarding the fees and taxes imposed on certain real property transfers in New Jersey, specifically increasing the threshold for these impositions from $1 million to $1.5 million. This change applies to various property types, including residential, commercial, certain farm properties, and cooperative units. Additionally, the bill raises the threshold for the tax on transfers of controlling interests in entities that own classified real property, aligning it with the new $1.5 million limit. Both the additional fee and the controlling interest transfer tax will be subject to annual adjustments based on the Consumer Price Index, ensuring that the thresholds keep pace with inflation.

The bill also outlines the responsibilities of the Director of the Division of Taxation in the Department of the Treasury, who will determine and publish the adjusted threshold amount by May 1 each year. The Consumer Price Index is defined in the bill 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 is set to take effect 30 days after its enactment.

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