Bill
Bill > S2562
NJ S2562
NJ S2562Permits 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
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 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 allows sellers of real property to receive a refund for any additional fee they paid that was more than one percent of the sale price, as long as the contract for the sale was fully completed before July 10, 2025. Currently, an additional fee is charged on top of the standard transfer fee for properties sold for over $1 million, with the amount of this extra fee increasing based on higher sale prices, as outlined in a tiered schedule. Previously, to get a refund for fees exceeding one percent, the deed had to be recorded by November 15, 2025, and the contract signed before July 10, 2025. This bill removes the recording deadline, meaning sellers can now claim a refund for these excess fees if their contract was executed before July 10, 2025, regardless of when the deed was officially recorded. The refund is processed by filing a claim with the New Jersey Division of Taxation within one year of the deed's recording.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Economic Growth Committee (on 01/13/2026)
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/2026/S2562 |
| BillText | https://pub.njleg.gov/Bills/2026/S3000/2562_I1.HTM |
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