All Roll Calls
Yes: 62 • No: 51
New JerseyA5804220th Legislature (2024-2025)HouseWALLET
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.
Sponsored By: Verlina Reynolds-Jackson (Democratic), Benjie E. Wimberly (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 2 benefits, 2 costs, 0 mixed.
Fee refunds for earlier property contracts
Sellers can recover the transfer fee paid above 1% of the full transfer value for qualifying earlier contracts. The transfer value must exceed $1 million, and the contract must have been fully signed before July 10, 2025. The deed must have been recorded by November 15, 2025. Sellers must claim the refund within one year after recording and provide documents required by the New Jersey Division of Taxation.
Higher transfer fees for property sellers
Beginning July 10, 2025, sellers pay the fee on covered New Jersey property transfers above $1 million. Covered property includes Class 2 homes, cooperative units, Class 4A commercial property, and Class 3A farms with a residential building. Property transferred to the same buyer alongside covered residential or farm property is also covered. The rate applies to the full transfer value: 1% above $1 million through $2 million; 2% above $2 million through $2.5 million; 2.5% above $2.5 million through $3 million; 3% above $3 million through $3.5 million; and 3.5% above $3.5 million. Transfer value includes money, other items of value, and mortgages assumed or left on the property. Exemptions cover transfers to tax-exempt charities, transfers by federal or state governments and their instrumentalities, and qualifying mergers. For the merger exemption, the property's equalized assessed value must be less than 20% of all assets exchanged. Transfers among combined-group members in a unitary business also qualify for exemption when entered into on or after January 1, 2021. Counties collect the fee when deeds are submitted for recording and send it to the State General Fund by the following month's 10th day. Class 4 deeds and otherwise covered deeds, including exempt transfers, require an attached seller affidavit listing value, location, and block and lot. A copy goes to the Division of Taxation by the 10th day of the month after recording. General refund claims must be sworn and filed within 90 days after payment; the separate early-contract refund has a longer deadline. State tax procedures govern collection, audits, appeals, and penalties. The law also repeals a separate transfer-fee provision, without specifying any resulting savings.
Tax relief for earlier commercial deals
An earlier-contract rule taxes qualifying commercial ownership transfers at 1% of the transfer value above $1 million. The contract or binding agreement must have been fully signed before July 10, 2025. The transfer must have occurred by November 15, 2025. The entity must hold an interest in Class 4A commercial property, directly or indirectly. This rule replaces the graduated rates for those transfers.
Higher taxes on commercial ownership sales
Beginning July 10, 2025, sellers pay graduated taxes on covered sales of controlling interests in entities holding Class 4A commercial property. The transfer value must exceed $1 million. A controlling interest means more than 50% of voting power or beneficial ownership, depending on the entity type. Rates are 1% above $1 million through $2 million; 2% above $2 million through $2.5 million; 2.5% above $2.5 million through $3 million; 3% above $3 million through $3.5 million; and 3.5% above $3.5 million. These are not tax brackets that apply only to dollars above each cutoff. When an entity holds other assets, the commercial property's equalized assessed value must also exceed $1 million. Tax applies to the transferred share attributable to commercial property, using allocated transfer value or the applicable assessed-value calculation. Transfers within six months are presumed to form one sale unless shown otherwise. Related-party attribution rules apply, and buyers acting together count as one purchaser unless that presumption is rebutted. Sellers must file and pay by the last day of the month after the sale is completed. Exemptions cover transfers to tax-exempt charities, transfers by federal or state governments and their instrumentalities, and qualifying mergers. For the merger exemption, the property's equalized assessed value must be less than 20% of all assets exchanged. Qualifying unitary-business transfers among combined-group members entered into on or after January 1, 2021, are also exempt. Transfers already subject to the deed fee are exempt from this tax to prevent double taxation. The Division of Taxation administers reporting, records, audits, appeals, and penalties under state tax procedures.
Sponsors & Cosponsors
Sponsors
Verlina Reynolds-Jackson
Democratic • House
Benjie E. Wimberly
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 6/30/2025
3RDG FINAL PASSAGE
Yes: 41 • No: 37
Senate vote • 6/30/2025
3RDG FINAL PASSAGE
Yes: 21 • No: 14
Actions Timeline
Approved by Governor — P.L.2025, c.69.
6/30/2025GovernorPassed Senate, PBH — (21-14)
6/30/2025SenateSubstituted for S4666 (1R)
6/30/2025SenateReceived in Senate, SWR, 2nd Reading in Senate
6/30/2025SenatePassed Assembly — (41-37-0)
6/30/2025HouseReported, 2nd Reading in Assembly
6/26/2025HouseIntroduced, 1st Reading in Assembly, Referred to Assembly Budget Committee
6/26/2025House
Bill Text
Version PL2025
8/11/2025
Version AL2025
7/10/2025
As Introduced
6/30/2025
Assembly Budget Substitute (6/26/25)
6/27/2025
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