This bill amends the New Jersey transfer inheritance tax to exempt transfers of residential real property between family members who co-own the property. Specifically, it introduces a new provision that states residential real property passing to a family member who has co-ownership of the property will not be subject to inheritance tax. The bill defines "residential real property" as any parcel of land that includes a single one- or two-family dwelling, and "co-ownership" as ownership by two or more family members who are exempt from the transfer inheritance tax, including a range of relatives such as siblings, cousins, and in-laws.

The current law only exempts transfers between certain family members, such as spouses and children, from inheritance tax. By expanding the exemption to include co-owners who are family members, the bill aims to facilitate the transfer of residential property within families without the burden of taxation. The bill is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.