This bill amends New Jersey law concerning the fees and taxes associated with the transfer of real property and controlling interests in entities that own such property. It shifts the responsibility for these payments from the buyer (grantee) to the seller (grantor) and introduces a tiered fee structure based on the consideration amount. The rates range from one percent for transfers between $1 million and $2 million to three and a half percent for transfers exceeding $3.5 million. The bill mandates that the fee be collected by the county recording officer at the time of deed recording and remitted to the State Treasurer.

Additionally, the bill outlines specific exemptions from the fee, such as transfers to tax-exempt organizations and certain corporate mergers or acquisitions where the assessed value of the transferred property is less than 20 percent of the total assets exchanged. It also establishes that the tax on the sale or transfer of a controlling interest in an entity owning classified real property will follow the same tiered structure, with the seller responsible for payment. The act is set to take effect immediately and will apply to transfers occurring on or after July 10, 2025. Furthermore, sellers can apply for a refund of any additional fee amounts exceeding one percent of the consideration for transfers valued over $1 million, provided certain conditions are met.

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