NJ
New Jersey Senate Bill S3841

New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S3841

Introduced
10/28/24  

Caption

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.

Impact

The bill directly impacts the way real estate transactions are taxed in New Jersey, specifically according to the existing structure of the Mansion Tax. As it stands, properties selling for more than $1 million are subjected to a 1% tax. By raising the threshold, fewer transactions will incur this fee, potentially leading to an increase in property sales that previously fell just above the previous threshold. Furthermore, the bill includes provisions for annual adjustments tied to inflation, which is significant for keeping pace with rising real estate values over time and maintaining equitable taxation practices.

Summary

Senate Bill 3841 proposes to increase the threshold for the imposition of certain fees and taxes on real property transfers from $1 million to $1.5 million, contingent upon annual adjustment according to the Consumer Price Index (CPI). This change is aimed at reducing the immediate financial burden on home buyers and investors involved in significant real estate transactions, particularly within residential and commercial markets. By raising this threshold, the bill intends to alleviate some costs associated with the current 'Mansion Tax', which applies to properties valued above $1 million.

Contention

While the bill is expected to offer relief to real estate buyers, there are likely to be points of contention among stakeholders. Critics may argue that raising the threshold could lead to a revenue shortfall for state and local governments dependent on these taxes for funding public services. On the other hand, proponents may advocate that the adjustment will facilitate greater access to housing by reducing the costs associated with home buying, especially for first-time buyers. The tension between the need for government revenue and the desire for affordable housing solutions will be at the forefront of discussions surrounding SB 3841.

Latest S3841 Activity

Companion Bills

NJ A4961

Same As 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.

Similar Bills

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 A4839

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

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 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.

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 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

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.