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Bill > S985


NJ S985

NJ S985
Exempts transfers of residential real property between family members from inheritance tax.


summary

Introduced
01/13/2026
In Committee
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)

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