Bill > A1003

Introduced Session

This bill repeals the Transfer Inheritance Tax for transfers of estate for decedents dying on or after July 1, 2015. Currently, New Jersey imposes a Transfer Inheritance Tax on beneficiaries for the receipt of assets from a New Jersey resident decedent and certain New Jersey assets of nonresident decedents, as determined by the value of the assets transferred and the beneficiary's relationship to the decedent. The Transfer Inheritance Tax is one of the State's oldest taxes, originating in 1892. The tax is imposed on the transfer of all personal and real property in the estates of New Jersey resident decedents and of all tangible and real property located in New Jersey in the estates of nonresident decedents. The tax was extensively revised in 1985 to exempt from taxation transfers to spouses, ancestors and descendants of the decedent. But "lateral" transfers, bequests to brothers and sisters of the decedent or their children, and to nonrelatives are taxed at rates of up to 16 percent. This bill would eliminate all remaining taxable "classes" of beneficiaries and eliminate New Jersey's distinction as being one of only six states to impose an inheritance tax, and of being one of only two states, including Maryland, to impose both an inheritance tax and an estate tax.

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DiAnne Gove (R)*,  Brian Rumpf (R)*,  Jay Webber (R)*, 

Introduced, Referred to Assembly Budget Committee (on 01/27/2016)