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 threshold for the tax on transfers of controlling interests in entities that own classified real property is also increased from $1 million to $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 outlines that beginning on July 1 following its enactment, the Director of the Division of Taxation will adjust the threshold annually according to the percent change in the Consumer Price Index for urban consumers in the New York City and Philadelphia metropolitan statistical areas. The Director is required to publish the adjusted threshold and the amount of the adjustment by May 1 each year. This legislative change aims to alleviate the financial burden on property transactions by raising the threshold for tax imposition and linking it to inflation, thereby reflecting the rising costs of living.

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