Bill > S4915

Introduced Session

This bill establishes the "End Hedge Fund Control of New Jersey Homes Act." The bill imposes a tax on certain purchases of residential properties, including single-family homes and small multi-family residences by certain commercial entities for investment purposes. The bill requires the imposition of a tax on an applicable taxpayer for the acquisition of a covered residence, as defined in the bill, in an amount equal to 50 percent of the fair market value of the residence. The bill defines an "applicable taxpayer" as an entity that manages funds pooled from investors, and is a fiduciary with respect to such investors. The bill establishes certain exceptions to the application of the tax. One exception is provided if the number of covered residences owned by the taxpayer is equal to or less than the maximum permissible units prior to taxation, determined in accordance with a formula established in the bill. Under the formula, the maximum permitted units are fewer if the applicable taxpayer is also a "hedge fund taxpayer," defined as possessing $50 million or more in pooled net value or assets under management on any day during the calendar year. The maximum permitted units for both hedge fund taxpayers and all other applicable taxpayers gradually reduces over the course of 10 years from the effective date of the bill, or from the formation of the commercial entity, if formed after the effective date. Even after 10 years, if an applicable taxpayer is not a hedge fund taxpayer, the formula does not permit the tax to apply if the taxpayer owns 50 or fewer properties. Other exceptions to the application of the tax consist of circumstances in which:· the ownership interest acquired in a covered residence consists of less than 50 percent of the value of the residence;· the acquired residence is unoccupied and the acquisition occurred through a foreclosure;· the acquired residence is used as the primary residence of a person who has an ownership interest, other than a negligible stock interest, in the applicable taxpayer; or· the acquired residence has been constructed, acquired, or operated with funding sources appropriated by the federal government, or other public funding sources that, pursuant to the rules and regulations adopted by the Director of the Division of Taxation in the Department of the Treasury (director), render the residence as not subject to the tax. The bill authorizes the director to require the reporting of information necessary to carry out the purposes of the bill. A person who fails to timely report information that the director requires, or provides incomplete or inaccurate information is to be subject to interest and penalties that are provided for pursuant to the State Uniform Tax Procedure Law, R.S.54:48-1 et seq. However, the director may waive penalties and interest if the person demonstrates by clear and convincing evidence that the failure is due to reasonable cause and not to willful neglect. The bill requires the director to adopt rules and regulations to effectuate the provisions of the bill on or before the first day of the fifth month following the date of enactment. The bill is to take effect on the first day of the fifth month following the date of enactment.

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Joe Cryan (D)*, 

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 12/01/2025)

Official Document