Bill Text: NJ A791 | 2024-2025 | Regular Session | Introduced
Bill Title: Exempts senior citizens and blind or disabled persons from certain realty transfer fees.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Aging and Human Services Committee [A791 Detail]
Download: New_Jersey-2024-A791-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman GREGORY P. MCGUCKIN
District 10 (Monmouth and Ocean)
SYNOPSIS
Exempts senior citizens and blind or disabled persons from certain realty transfer fees.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act exempting senior citizens and blind or disabled persons from payment of certain fees on the transfer of title to real property, amending P.L.1975, c.176.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 4 of P.L.1975, c.176 (C.46:15-10.1) is amended to read as follows:
4. a. The following transfers of title to real property shall be exempt from payment of [the State portion of the basic fee] fees imposed under P.L.1968, c.49 (C.46:15-5 et seq.) to the extent specified:
(1) The sale of any one- or two-family residential premises which are owned and occupied by a senior citizen, blind person or disabled person who is the seller in such transaction shall be exempt from (a) the State portion of the basic fee collected pursuant to subparagraph (a) of paragraph (1) of subsection a. of section 3 of P.L.1968, c.49 (C.46:15-7), and (b) the general purpose fee collected pursuant to paragraph (3) of that subsection; provided, however, that except in the instance of a husband and wife no exemption shall be allowed if the property being sold is jointly owned and one or more of the owners is not a senior citizen, blind person or disabled person.
(2) The sale of low and moderate income housing shall be exempt from the State portion of the basic fee.
(3) The purchase of any one- or two-family residential premises by a senior citizen, blind person or disabled person who is the buyer in such transaction shall be exempt from the fee collected pursuant to section 8 of P.L.2004, c.66 (C.46:15-7.2).
b. Transfers of title to real property upon which there is new construction shall be exempt from payment, with respect to all consideration therefor up to $150,000.00, of 80% of the State portion of the basic fee.
c. (1) The director shall promulgate rules, regulations and forms of certification or otherwise necessary to carry out the provisions of this section.
(2) No transfer shall be eligible for more than one exemption under this section.
d. The balance of the State portion of the basic fee and the additional fee collected on transfers subject to exemption under subsection b. of this section shall be remitted to the State Treasurer and shall be credited to the New Jersey Affordable Housing Trust Fund established pursuant to P.L.1985, c.222 (C.52:27D-301 et al.), to be spent in the manner established under section 20 thereof (C.52:27D-320).
e. Subsections a. through d. of this section shall be without effect on and after the tenth day following a certification by the Director of the Division of Budget and Accounting in the Department of the Treasury pursuant to subsection b. of section 2 of P.L.1992, c.148 (C.46:15-10.2) or subparagraph (ii) of subparagraph (b) of paragraph 2 of subsection b. of section 1 of P.L.1992, c.148 (C.13:19-16.1).
(cf: P.L.2008, c.31, s.3)
2. This act shall take effect immediately and apply to transfers of real property occurring on or after the first day of the second calendar month following enactment.
STATEMENT
This bill exempts the sale of owner-occupied residential property by a senior citizen or a blind or disabled person, from certain State portions of the realty transfer fee. The bill also exempts the purchase by a senior citizen or a blind or disabled person of certain residential property from the 1% fee imposed upon the recording of title to that property if the selling price exceeds $1,000,000.
The reduction in revenue collected through the realty transfer fee as the result of the enactment of this bill is not believed to be sufficient to trigger the "poison pill" provisions of the realty transfer fee. The "poison pill" provisions of the realty transfer fee law require the Legislature to annually appropriate from realty transfer fees collected by the State $25 million to the "Shore Protection Fund" (N.J.S.A.13:19-16.1) and $12 million to the "Highlands Protection Fund" (N.J.S.A.13:20-19). That law provides that if these funds do not receive this required revenue, the State portion of the basic fee, as well as the additional fee which funds the Affordable Housing Trust Fund (N.J.S.A.52:27D-320) shall not be collected.
