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Bill > S985
NJ S985
NJ S985Exempts transfers of residential real property between family members from inheritance tax.
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 amends the New Jersey transfer inheritance tax to eliminate the tax on transfers of residential real property between family members who co-own residential real property. Currently, transfers of property between family members are only exempt from taxation if the family members are spouses, civil union partners, domestic partners, children, legally adopted children, mutually-acknowledged children, grandchildren, great-grandchildren, parents, grandparents, and stepchildren. This bill amends the New Jersey transfer inheritance tax to exempt property transfers between certain family members who co-own the residential real property. This bill will take effect immediately and apply to taxable years beginning on or after January 1 of the year next following enactment.
AI Summary
This bill amends New Jersey's transfer inheritance tax law to exempt residential real property transferred between family members who co-own it, meaning the property will no longer be subject to this tax. The bill defines "residential real property" as a single one- or two-family dwelling with associated outbuildings, and "co-ownership" as ownership by two or more family members who are already exempt from the transfer inheritance tax, as well as brothers, sisters, cousins, nieces, nephews, aunts, uncles, sisters-in-law, and brothers-in-law. This change aims to reduce the tax burden on families transferring family homes and will apply to tax years beginning after the bill is enacted.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Introduced in the Senate, Referred to Senate Budget and Appropriations 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/S985 |
| BillText | https://pub.njleg.gov/Bills/2026/S1000/985_I1.HTM |
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