This bill amends existing laws concerning the payment of additional fees and taxes on real property transfers valued over $2 million, transferring the financial responsibility from the buyer (grantee) to the seller (grantor). It introduces a tiered fee structure, starting at one percent for properties valued over $1 million and escalating to three and a half percent for properties exceeding $3.5 million. The fees will be collected by the county recording officer at the time of deed recording and subsequently remitted to the State Treasurer. The bill also requires the filing of an affidavit of consideration for property transfers, which must detail the consideration and specifics of the property.

Moreover, the bill modifies the controlling interest transfer tax by establishing new tax rates based on the consideration received for certain property transfers. The tax rates will be set at two percent for transfers over $2 million but not exceeding $2.5 million, two and a half percent for transfers over $2.5 million but not exceeding $3 million, three percent for transfers over $3 million but not exceeding $3.5 million, and three and a half percent for transfers exceeding $3.5 million. Sellers will also have the opportunity to apply for refunds on any additional fees that surpass one percent of the consideration for real property transfers valued over $1 million, provided these transactions are recorded by November 15, 2025, and are based on contracts executed before July 1, 2025.

Statutes affected:
Introduced: 46:15-7.2, 46:15-7.4, 54:15C-1, 46:15-7.3