The End Hedge Fund Control of New Jersey Homes Act aims to impose a tax on certain investment purchases of residential properties by commercial entities, specifically targeting hedge funds. Under this bill, applicable taxpayers—defined as entities managing pooled funds from investors—will be taxed 50 percent of the fair market value of any covered residence they acquire. The bill outlines specific exceptions to this tax, including scenarios where the taxpayer owns a limited number of properties, the ownership interest is less than 50 percent, the property is unoccupied and acquired through foreclosure, or the property is used as a primary residence by someone with a significant ownership interest in the taxpayer.

Additionally, the bill establishes a formula to determine the maximum number of residential units that can be owned by applicable taxpayers without incurring the tax, with stricter limits for hedge fund taxpayers. This maximum number gradually decreases over a ten-year period. The Director of the Division of Taxation is authorized to require reporting of relevant information and can impose penalties for non-compliance, although these penalties may be waived under certain circumstances. The bill mandates that the director adopt necessary regulations within five months of enactment, with the act taking effect shortly thereafter.