Bill
Bill > A6142
NJ A6142
NJ A6142Eliminates tiered fee structure for fees and taxes imposed on property transfers valued over $1 million.
summary
Introduced
12/04/2025
12/04/2025
In Committee
12/04/2025
12/04/2025
Crossed Over
Passed
Dead
01/12/2026
01/12/2026
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill reduces the amount of the additional fees and taxes imposed on certain transfers of real property for consideration in excess of $1 million. Currently, 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 on the deed. The State also imposes a controlling interest transfer tax on certain non-deed transfers of commercial property that are not subject to this additional fee. The controlling interest transfer tax is imposed on the seller of a controlling interest in an entity that directly or indirectly owns certain commercial property, provided that the consideration paid to acquire the interest exceeds $1 million. In July 2025, the State enacted P.L.2025, c.69 to provide that the amount of the additional fee and a controlling interest transfer tax is to be imposed according to a tiered structure with rates ranging from one percent to three and one-half percent based on the value of the property transferred. This bill eliminates the tiered fee structure established under P.L.2025, c.69 and imposes a uniform fee rate of one percent for any transfer of real property in excess of $1 million, which rate was imposed before the enactment of P.L.2025, c.69. The bill also allows certain sellers to apply to the Director of the Division of Taxation for a refund of additional fee amounts paid in excess of one percent for certain transactions. Specifically, this refund would be permitted for any property transfer in which the deed was recorded on or before July 1, 2026, and which was transferred pursuant to a contract that was fully executed before January 1, 2026.
AI Summary
This bill eliminates the recently established tiered fee structure for property transfer taxes and reverts to a uniform one percent fee for property transfers valued over $1 million. Previously, a sliding scale of fees ranging from one percent to three and a half percent was applied based on the property's value, but this bill removes those graduated rates and reinstates a flat one percent fee. The bill allows sellers who transferred property under a contract executed before January 1, 2026, and with a deed recorded on or before July 1, 2026, to apply for a refund of any additional fees paid above the one percent rate. This applies to various types of property transfers, including residential properties, farm properties with residential structures, cooperative units, and commercial properties. The legislation affects both direct property transfers and transfers of controlling interests in entities that own commercial properties, ensuring a consistent one percent tax rate across different types of real estate transactions. The changes take effect immediately and apply to property transfers occurring on or after the date of enactment.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
Last Action
Introduced, Referred to Assembly Housing Committee (on 12/04/2025)
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/A6142 |
| BillText | https://pub.njleg.gov/Bills/2024/A6500/6142_I1.HTM |
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