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. This change applies to various property transactions, including residential, commercial, certain farm properties, and cooperative units, as well as transfers of controlling interests in entities that own commercial property. The bill also establishes that this threshold will be subject to annual adjustments based on the Consumer Price Index (CPI), ensuring that it keeps pace with inflation. The Director of the Division of Taxation in the Department of the Treasury will be responsible for determining and publishing the adjusted threshold amount by May 1 of each year.

In addition to the threshold increase, the bill includes specific legal language changes, such as the definition of the Consumer Price Index and the adjustment process tied to it. The adjustments will be based on the percent change in the CPI over a 12-month period, beginning April 1 and ending March 31, immediately preceding the adjustment period. The bill is set to take effect 30 days after its enactment, thereby providing a timely update to the existing tax structure related to real property transfers.

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