Realty Transfer Fee Increases

 

Dateline: June 30, 2002

By: Eric S. Kapnick, Esq.

 

Overview:

On June 30, 2004 Governor McGreevy signed into law increased realty transfer fees for people selling a home for more than $350,000, and added a new tax for people buying a home for more than $1,000,000 (P.L.2004, c.66).  This law amends N.J.S. 46:15-5 et seq. This new law includes two additional fees, a "general purpose fee" and a luxury fee on the purchase of residential property for more than $1 million.  Click on the bill number to see the full text of Assembly bill A3115.  The official summary statement of the bill can be found here.

 

Sellers' Taxes:

Under the new laws, the realty transfer fees for the Seller will be calculated as follows:

  • "Basic Fee" - $1.75 for each $500 of consideration; and

  • "Additional Fee" - $0.75 of each $500 of consideration in excess of $150,000; and

  • "General Purpose Fee" -

            *    $0.90 of each $500 of consideration for sales between $350,000 and $550,000

            *    $1.40 of each $500 of consideration for sales between $550,000 and $850,000

            *    $1.90 of each $500 of consideration for sales between $850,000 and $1,000,000

            *    $2.15 of each $500 of consideration for sales in excess of $1 million.

 

Buyers' Taxes:

In addition, if a Buyer purchases property zoned for residential use for consideration in excess of $1 million, there is an additional fee to the Buyer equal to 1% of the total consideration.  This fee will apply whether the residential property is improved or not.

This law goes into effect for transfer of real property occurring on or after August 1, 2004.

 

This Article is a service of the Real Estate Department of Fein, Such, Kahn & Shepard, P.C., 7 Century Drive, Suite 201, Parsippany, NJ 07960.  Phone: 973-538-4700. Website: www.feinsuch.com.  It does not constitute legal advice nor create an attorney-client relationship.  For more information contact Shareholder Eric S. Kapnick, Esq. at ekapnick@feinsuch.com.

 

© 2004, Fein, Such, Kahn & Shepard, P.C., all rights reserved.  Permission is granted to reproduce and redistribute this article so long as (i) the entire article, including all headings and the copyright notice are included in the reproduction, and (ii) no fee or other charge is imposed.