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. The bill stipulates that this threshold will be subject to annual adjustments based on the Consumer Price Index, ensuring that it keeps pace with inflation.

The bill outlines that beginning on July 1 following its enactment, the Director of the Division of Taxation in the Department of the Treasury will determine and publish the adjusted threshold amount by May 1 each year. The Consumer Price Index is defined as the average annual increase in the consumer price index 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