STATE OF NEW JERSEY
222nd LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Senator DECLAN J. O'SCANLON, JR.
District 13 (Monmouth)
SYNOPSIS
Permits refund of additional fee paid in excess of one percent of consideration of certain real property transfers if contract was executed prior to July 10, 2025.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the additional fee on certain transfers of real property for over $1 million and amending P.L.2006, c.33.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.2006, c.33 (C.46:15-7.4) is amended to read as follows:
2. Notwithstanding the provisions of section 8 of P.L.2004, c.66 (C.46:15-7.2), for the transfer of real property that was made for consideration in excess of $1,000,000, provided that [the deed was recorded on or before November 15, 2025, and that] the real property was transferred pursuant to a contract that was fully executed before July 10, 2025, any fee in excess of one percent of consideration imposed pursuant to section 8 of P.L.2004, c.66 (C.46:15-7.2) shall have the difference between the amount in excess of one percent of consideration and one percent of consideration refunded to the grantor by the filing, within one year following the date of the recording of the deed, of a claim with the New Jersey Division of Taxation for a refund of the fee paid. Proof of claim for refund shall be made by the submission of such documentation as the Director of the Division of Taxation may require.
(cf: P.L.2025, c.69, s.2)
2. This act shall take effect immediately and shall be retroactive to July 10, 2025.
STATEMENT
This bill permits sellers of real property to apply to the Director of the Division of Taxation for a refund of additional fee amounts paid in excess of one percent of the consideration, provided that the transfer was pursuant to a contract that was fully executed before July 10, 2025.
Under current law, 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. As recently updated by P.L.2025, c.69, the amount of the additional fee is determined in accordance with a tiered schedule based on the value of the consideration received for the transferred properties, as follows: one percent of the consideration for transfers over $1 million but not more than $2 million; two percent for transfers over $2 million but not more than $2.5 million; two and one-half percent for transfers over $2.5 million but not more than $3 million; three percent for transfers over $3 million but not more than $3.5 million; and three and one-half percent for transfers over $3.5 million.
Currently, a seller is eligible for a refund, upon submission of any required documentation, for any fee imposed in excess of one percent of the consideration for a transfer of real property made for consideration in excess of $1 million, provided that the deed is recorded on or before November 15, 2025 and the property is transferred pursuant to a contract that was fully executed before July 10, 2025. The bill amends this provision of law to remove the requirement for the deed to be recorded on or before November 15, 2025. Accordingly, the bill allows a seller to claim the refund for any fee paid in excess of one percent of the consideration for any transfer of real property made pursuant to a contract that was fully executed before July 10, 2025, regardless of when the deed was recorded.