NJ
New Jersey Assembly Bill A106

New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A106

Introduced
1/11/22  

Caption

Eliminates supplemental realty transfer fee and one percent fee on transfers of certain commercial real estate and tax on sale of controlling interests in certain commercial real property.

Impact

If enacted, A106 will result in lower costs associated with buying and selling certain commercial real estate. Specifically, sellers of properties valued around $250,000 could save hundreds to over a thousand dollars, which may incentivize property transactions that would otherwise be stalled due to high associated costs. Moreover, the repeal of the one percent fee on transactions of $1 million and above represents a significant financial relief, saving potentially tens of thousands for buyers and altering the dynamics of the commercial property market.

Summary

Assembly Bill A106 seeks to eliminate various fees related to the transfer of commercial real estate in New Jersey, specifically targeting the supplemental realty transfer fee and a one percent fee applicable on commercial property transactions exceeding $1 million. This legislation intends to reduce the financial burden on buyers and sellers of commercial properties, promoting increased activity in a currently struggling real estate market. By repealing these fees, the sponsors argue that this bill will help stimulate property transactions that have been negatively impacted by higher transaction costs due to these fees.

Contention

The primary contention surrounding A106 comes from concerns about the potential loss of revenue that the state and local governments currently receive from these fees. Opponents of the bill may argue this loss could complicate funding for various public services and initiatives funded by the collected fees. There are also debates about whether eliminating such fees truly supports the long-term health of the real estate market or if it merely provides temporary relief that could have downsides, such as weakening local funding structures reliant on real estate transactions.

Latest A106 Activity

Companion Bills

No companion bills found.

Similar Bills

NJ A200

Eliminates supplemental realty transfer fee and one percent fee on transfers of certain commercial real estate and tax on sale of controlling interests in certain commercial real property.

NJ A4839

Increases threshold from $1 million to $1.65 million for imposition of certain fees and taxes on certain real property transfers.

NJ A790

Terminates imposition of general purpose fee under realty transfer fee and one percent assessment on purchases of residential real property selling for more than $1,000,000.

NJ A2456

Terminates imposition of general purpose fee under realty transfer fee and one percent assessment on purchases of residential real property selling for more than $1,000,000.

NJ A4961

Increases threshold for imposition of certain fees and taxes on certain real property transfers from $1 million to $1.5 million, subject to annual adjustment based on Consumer Price Index.

NJ S3841

Increases threshold for imposition of certain fees and taxes on certain real property transfers from $1 million to $1.5 million, subject to annual adjustment based on Consumer Price Index.

NJ S443

Exempts certain transactions of residential property involving senior, blind, and disabled citizens from general purpose fee under realty transfer fee and one percent assessment on real property selling for more than $1,000,000.

NJ S113

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