NJ
New Jersey Assembly Bill A5963

New Jersey 2024-2025 Regular Session

New Jersey Assembly Bill A5963

Introduced
7/24/25  

Caption

Dedicates 50 percent of revenues collected from additional fees and taxes imposed on real property transfers valued over $1 million to Affordable Housing Trust Fund.

Impact

The bill seeks to amend existing regulations related to real estate transactions that exceed the $1 million threshold, which currently impose additional fees on sellers of various properties, including residential, commercial, and agricultural real estate. By redirecting half of the proceeds from these transactions to the Affordable Housing Trust Fund, the bill aims to provide a reliable source of funding for programs that could aid in the construction and preservation of affordable housing units. This shift in funding mechanism has the potential to significantly bolster the state's capacity to tackle housing affordability issues.

Summary

Assembly Bill A5963 aims to enhance funding for affordable housing in New Jersey by allocating a portion of revenues from property transfer taxes. Specifically, the bill proposes that 50 percent of the revenues generated from additional fees and taxes on transfers of real estate valued over $1 million be directed to the New Jersey Affordable Housing Trust Fund. This allocation is intended to support the state's efforts in promoting affordable housing initiatives and addressing housing shortages, particularly in urban areas where demand significantly outpaces supply.

Contention

While supporters of A5963 emphasize the importance of increasing funding for affordable housing, concerns have been raised about the potential impacts on the real estate market. Opponents argue that imposing additional taxes on high-value transactions could discourage investment in real estate and may ultimately harm the housing market by increasing transaction costs. Furthermore, discussions have pointed to the need for a balanced approach that ensures housing initiatives are effectively funded without overburdening property owners and investors.

Companion Bills

No companion bills found.

Previously Filed As

NJ A5804

Modifies payer of additional fees and taxes imposed on certain real property transfers; modifies fees and taxes imposed on property transfers valued over $2 million.

NJ S4666

Modifies payer of additional fees and taxes imposed on certain real property transfers; modifies fees and taxes imposed on property transfers valued over $2 million.

NJ A4839

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

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 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 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 A216

Provides municipality with affordable housing credit toward its municipal fair share housing obligation for funds transferred to the New Jersey Affordable Housing Trust Fund pursuant to P.L.2008, c.46.

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 A106

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.

Similar Bills

No similar bills found.