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 establishes a tiered fee structure, starting at one percent for properties valued over $1 million and increasing to three and a half percent for properties valued over $3.5 million. The bill also outlines exemptions for specific transactions, such as those involving tax-exempt organizations or corporate mergers where the property value is less than 20 percent of the total assets exchanged. Furthermore, it introduces a new tax on the sale or transfer of a controlling interest in entities that own classified real property, with a similar tiered tax structure based on the consideration or assessed value.

Additionally, the bill modifies the existing controlling interest transfer tax by increasing tax rates based on the consideration received for transferred properties or controlling interests. The new rates range from two percent for transfers exceeding $2 million but not more than $2.5 million, to three and a half percent for transfers exceeding $3.5 million. Sellers are now responsible for filing tax returns and making payments, and they can apply for refunds of any additional fees exceeding one percent of the consideration for real property transfers over $1 million, provided certain conditions are met. The changes will take effect for transfers occurring on or after July 1, 2025, and aim to enhance state revenue from high-value real estate transactions while simplifying the tax collection process.

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