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, with rates ranging from one percent for properties valued between $1 million and $2 million to three and a half percent for properties exceeding $3.5 million. The legislation 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.

Additionally, the bill introduces a new tax on the sale or transfer of controlling interests in entities owning classified real property, with a similar tiered tax structure based on the consideration amount. The seller is now responsible for filing tax returns and paying this tax. The bill repeals a previous law and specifies that these changes will take effect immediately for transfers occurring on or after July 1, 2025. It also allows sellers to apply for refunds on any additional fees exceeding one percent of the consideration for transfers over $1 million, provided certain conditions are met. Overall, the legislation aims to enhance state revenue from 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