Sponsored by:
Senator BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Senator VIN GOPAL
District 11 (Monmouth)
Co-Sponsored by:
Senators Singleton, Zwicker, Stack, Johnson and Cryan
SYNOPSIS
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.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the additional fees and taxes on certain transfers of real property for over $1 million and supplementing Title 46 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding any provision of law to the contrary, the State shall annually deposit 50 percent of the total revenues collected from the additional fee imposed pursuant to section 8 of P.L.2004, c.66 (C.46:15-7.2) and the tax imposed pursuant to section 3 of P.L.2006, c.33 (C.54:15C-1) into the New Jersey Affordable Housing Trust Fund established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320).
2. This act shall take effect on the July 1 next following the date of enactment.
STATEMENT
This bill dedicates 50 percent of the revenues generated from the additional taxes and fees imposed on certain transfers of real property for over $1 million to the New Jersey Affordable Housing Trust Fund.
Currently, an additional fee is imposed on the seller of various categories of real property, including residential property, commercial property, certain farm property, and cooperative units, for consideration in excess of $1 million, as recited in the deed. The State also imposes a controlling interest transfer tax on certain non-deed transfers of commercial property that are not subject to this additional fee. The controlling interest transfer tax is imposed on the seller of a controlling interest in an entity that directly or indirectly owns certain commercial property, provided that the consideration paid to acquire the interest exceeds $1 million.
Under current law, the revenues generated from these taxes and fees are deposited into the General Fund. The bill specifies that 50 percent of these revenues would instead be annually deposited into the “New Jersey Affordable Housing Trust Fund” to support appropriations for affordable housing purposes.