This bill proposes to increase the threshold for the imposition of certain fees and taxes on real property transfers from $1 million to $1.5 million, with future adjustments based on the Consumer Price Index (CPI). The bill amends existing law to reflect this change, stating that the fee will apply to various property types, including residential, commercial, certain farm properties, and cooperative units, when the sale price exceeds the new threshold. Additionally, the tax on transfers of controlling interests in entities that own classified real property will also be adjusted to the same $1.5 million threshold.

The bill outlines that beginning July 1 of each year following its enactment, the threshold will be adjusted annually in direct proportion to the percent change in the CPI over the preceding 12-month period. The Director of the Division of Taxation in the Department of the Treasury will be responsible for determining and publishing the new threshold amount by May 1 each year. The bill also defines the Consumer Price Index as the average annual increase for urban consumers in the New York City and Philadelphia metropolitan areas, as reported by the U.S. Department of Labor.

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