Bill > S4666

This bill modifies the fees and taxes imposed on real property transfers valued over $1 million in New Jersey, shifting the responsibility for paying these fees from the grantee (buyer) to the grantor (seller). The bill introduces a graduated fee structure where the percentage paid increases based on the property's value: 1% for properties between $1-2 million, 2% for properties between $2-2.5 million, 2.5% for properties between $2.5-3 million, 3% for properties between $3-3.5 million, and 3.5% for properties over $3.5 million. These changes apply to various types of property transfers, including residential properties, farm properties with residential structures, cooperative units, and commercial properties. The bill also modifies provisions related to controlling interest transfers in entities possessing classified real property, implementing a similar graduated tax structure. Certain exemptions remain in place, such as transfers to tax-exempt organizations, transfers incidental to corporate mergers where the real property value is less than 20% of total assets, and intercompany transfers. The new provisions will take effect immediately and apply to property transfers occurring on or after July 10, 2025.