NJ S175

Bill

Eliminates the New Jersey Transfer Inheritance Tax and repeals parts of chapters 33 through 37 of Title 54 of the Revised Statutes.

Introduced
01/11/2022

In Committee
01/11/2022

Crossed Over

Passed

Dead
01/08/2024

Introduced Session

2022-2023 Regular Session

Bill Summary

This bill repeals the Transfer Inheritance Tax for transfers of estate for decedents dying on or after July 1, 2021. Currently, New Jersey imposes a Transfer Inheritance Tax on beneficiaries for the receipt of assets from a New Jersey resident decedent and certain New Jersey assets of nonresident decedents, as determined by the value of the assets transferred and the beneficiary's relationship to the decedent. The Transfer Inheritance Tax is one of the State's oldest taxes, originating in 1892. The tax is imposed on the transfer of all personal and real property in the estates of New Jersey resident decedents and of all tangible and real property located in New Jersey in the estates of nonresident decedents. The tax was extensively revised in 1985 to exempt from taxation transfers to spouses, ancestors, and descendants of the decedent. But "lateral" transfers, bequests to brothers and sisters of the decedent or their children, and to nonrelatives are taxed at rates of up to 16 percent. This bill eliminates all remaining taxable "classes" of beneficiaries and eliminates New Jersey's distinction as being one of only six states to impose an inheritance tax.

AI Summary

This bill eliminates the New Jersey Transfer Inheritance Tax, which is a tax imposed on beneficiaries for receiving assets from the estate of a deceased New Jersey resident or certain assets of a deceased non-resident. The tax, which originated in 1892, has been extensively revised over the years but still imposes rates of up to 16% on "lateral" transfers to non-relatives and certain relatives of the decedent. This bill repeals the relevant sections of the Revised Statutes, effectively eliminating the Transfer Inheritance Tax for decedents dying on or after July 1, 2021. The bill also includes provisions to ensure the continued enforcement of the tax for deaths prior to that date.

Committee Categories

Budget and Finance

Sponsors (2)

Christopher Connors (R)*, Holly Schepisi (R),

Last Action

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 01/11/2022)

Official Document

https://www.njleg.state.nj.us/bill-search/2022/S175

(4 Companion Bills)

Version:

Document Type	Source Location
State Bill Page	https://www.njleg.state.nj.us/bill-search/2022/S175
BillText	https://pub.njleg.gov/Bills/2022/S0500/175_I2.HTM
BillText	https://www.njleg.state.nj.us/Bills/2022/S0500/175_I1.HTM
Bill	https://www.njleg.state.nj.us/Bills/2022/S0500/175_I1.PDF

Bill	Bill Name	Last Action	Type
A1992	Establishes commission to study effects on adolescents of social media usage in and out of school.	Substituted by S715 (1R)	Same As
A759	Eliminates the New Jersey Transfer Inheritance Tax and repeals parts of chapters 33 through 37 of Title 54 of the Revised Statutes.	Introduced, Referred to Assembly Community Development and Affairs Committee	Same As
A931	Eliminates the New Jersey Transfer Inheritance Tax and repeals parts of chapters 33 through 37 of Title 54 of the Revised Statutes.	Introduced, Referred to Assembly Budget Committee	Carry Over
S1687	Eliminates the New Jersey Transfer Inheritance Tax and repeals parts of chapters 33 through 37 of Title 54 of the Revised Statutes.	Introduced in the Senate, Referred to Senate Budget and Appropriations Committee	Carry Over

Bill > S175

summary

Introduced Session

Bill Summary

AI Summary

Committee Categories

Sponsors (2)

Last Action

Official Document

bill text

bill summary

bill summary

bill summary