Bill Text: NJ A3044 | 2024-2025 | Regular Session | Introduced
Bill Title: Eliminates transfer inheritance taxes on brothers and sisters of a decedent.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A3044 Detail]
Download: New_Jersey-2024-A3044-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
SYNOPSIS
Eliminates transfer inheritance taxes on brothers and sisters of a decedent.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act eliminating transfer inheritance taxes on brothers or sisters of a decedent, amending R.S.54:34‑2.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:34-2 is amended to read as follows:
54:34-2. a. (1) The transfer of property to a husband or wife, or a domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A‑3), of a decedent shall be taxed at the following rates:
For transfers made through December 31, 1984:
On any amount in excess of $15,000.00, up to $50,000.00 ......... 2%
On any amount in excess of $50,000.00, up to $100,000.00 ........ 3%
On any amount in excess of $100,000.00, up to $150,000.00 ...... 4 %
On any amount in excess of $150,000.00, up to $200,000.00 ....... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ....... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ....... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ....... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ....... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 .............................. 16%
For transfers made on or after January 1, 1985 there shall be no tax imposed under this paragraph.
(2) The transfer of property to a father, mother, grandparent, child or children of a decedent, or to any child or children adopted by the decedent in conformity with the laws of this State, or of any of the United States or of a foreign country, or the issue of any child or legally adopted child of a decedent, shall be taxed at the following rates:
For transfers through June 30, 1985:
On any amount in excess of $15,000.00, up to $50,000.00 ........ 2%
On any amount in excess of $50,000.00, up to $100,000.00 ....... 3%
On any amount in excess of $100,000.00, up to $150,000.00 ...... 4%
On any amount in excess of $150,000.00, up to $200,000.00 ...... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ...... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ...... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ...... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ...... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 .............................. 16%
For transfers made from July 1, 1985 through June 30, 1986:
On any amount in excess of $50,000.00, up to $100,000.00 ....... 3%
On any amount in excess of $100,000.00, up to $150,000.00 ...... 4%
On any amount in excess of $150,000.00, up to $200,000.00 ...... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ...... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ...... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ...... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ...... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 ............................. 16%
For transfers made from July 1, 1986 through June 30, 1987:
On any amount in excess of $150,000.00, up to $200,000.00 ...... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ...... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ...... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ...... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ...... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made from July 1, 1987 through June 30, 1988:
On any amount in excess of $250,000.00, up to $300,000.00 ....... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ...... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ...... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ...... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 .............................. 16%
For transfers made on or after July 1, 1988 there shall be no tax imposed under this subsection.
b. (Deleted by amendment.)
c. The transfer of property to a brother or sister of a decedent, wife or widow of a son of a decedent, or husband or widower of a daughter of a decedent shall be taxed at the following rates:
[(1)] For transfers through June 30, 1988:
On any amount up to $1,100,000.00 ......................................... 11%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 13%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 14%
On any amount in excess of $1,700,000.00 ............................... 16%
[(2)] For transfers made on or after July 1, 1988:
On any amount in excess of $25,000.00, up to $1,100,000.00 .... 11%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 13%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 14%
On any amount in excess of $1,700,000.00 ............................... 16%
For transfers made to a brother or sister of a decedent on or after January 1, 2022, there shall be no tax imposed under this subsection.
d. The transfer of property to every other transferee, distributee or beneficiary not hereinbefore classified shall be taxed at the following rates:
On any amount up to $700,000.00 ............................................. 15%
On any amount in excess of $700,000.00 .................................. 16%
For every purpose of this subtitle all persons, including the decedent, shall be deemed to have been born in lawful wedlock and this provision shall apply to the estate of every decedent whether said decedent died before March 25, 1935, or shall die thereafter, but it shall not entitle any person to a refund of any tax paid before the aforementioned date.
(cf: P.L.2003, c.246, s.37)
2. This act shall take effect immediately.
STATEMENT
This bill amends the New Jersey transfer inheritance tax to eliminate the tax on brothers and sisters of a decedent for transfers made on or after January 1, 2022. Presently, transfers to brothers and sisters of a decedent are taxed according to the rate imposed on "Class C" beneficiaries, or at a rate of 11 to 16 percent depending on the amount transferred, with the first $25,000 exempt from taxation. This bill would effectively treat transfers to a brother or sister of a decedent on par with transfers to other immediate family members, including the spouse, domestic partner, civil union partner, father, mother, grandparent, or child of a decedent.
