This bill amends the New Jersey transfer inheritance tax to exempt transfers of residential real property between family members who co-own the property. The current law only provides exemptions for transfers between specific family members, such as spouses, children, and parents. The new provision allows for exemptions to extend to a broader range of family relationships, including siblings, cousins, aunts, uncles, and in-laws, as long as they co-own the residential property.

The bill introduces new definitions for "residential real property" and "co-ownership." Residential real property is defined as any parcel of land that includes a single one- or two-family dwelling, along with associated structures. Co-ownership is defined as ownership by two or more family members who are exempt from the transfer inheritance tax. This legislation is set to take effect immediately and will apply to taxable years beginning on or after January 1 of the year following its enactment.