Bill
Bill > S4857
NJ S4857
NJ S4857Permits refund of additional fee paid in excess of one percent of consideration of certain real property transfers if contract was executed prior to July 10, 2025.
summary
Introduced
11/13/2025
11/13/2025
In Committee
11/13/2025
11/13/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill permits sellers of real property to apply to the Director of the Division of Taxation for a refund of additional fee amounts paid in excess of one percent of the consideration, provided that the transfer was pursuant to a contract that was fully executed before July 10, 2025. Under current law, an additional fee is imposed on the seller of various categories of real property, including residential property, commercial property, certain farm property, and cooperative units, for consideration in excess of $1 million, as recited in the deed. As recently updated by P.L.2025, c.69, the amount of the additional fee is determined in accordance with a tiered schedule based on the value of the consideration received for the transferred properties, as follows: one percent of the consideration for transfers over $1 million but not more than $2 million; two percent for transfers over $2 million but not more than $2.5 million; two and one-half percent for transfers over $2.5 million but not more than $3 million; three percent for transfers over $3 million but not more than $3.5 million; and three and one-half percent for transfers over $3.5 million. Currently, a seller is eligible for a refund, upon submission of any required documentation, for any fee imposed in excess of one percent of the consideration for a transfer of real property made for consideration in excess of $1 million, provided that the deed is recorded on or before November 15, 2025 and the property is transferred pursuant to a contract that was fully executed before July 10, 2025. The bill amends this provision of law to remove the requirement for the deed to be recorded on or before November 15, 2025. Accordingly, the bill allows a seller to claim the refund for any fee paid in excess of one percent of the consideration for any transfer of real property made pursuant to a contract that was fully executed before July 10, 2025, regardless of when the deed was recorded.
AI Summary
This bill modifies the existing law regarding refunds for additional fees paid on real property transfers over $1 million by removing the requirement that the deed must be recorded on or before November 15, 2025. Instead, sellers can now apply for a refund of any fee paid in excess of one percent of the property's consideration, as long as the property transfer was pursuant to a contract fully executed before July 10, 2025. The refund process involves filing a claim with the New Jersey Division of Taxation within one year of the deed's recording, and sellers must provide documentation as required by the Division's Director. This change effectively makes the refund more accessible by eliminating the specific recording deadline, allowing sellers more flexibility in claiming excess fees paid during property transfers. The bill takes effect immediately and is retroactively applied to July 10, 2025, which means it covers property transfers already completed or in process at the time of its passage.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 11/13/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4857 |
| BillText | https://pub.njleg.gov/Bills/2024/S5000/4857_I1.HTM |
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