Bill Text: NJ A2786 | 2024-2025 | Regular Session | Introduced
Bill Title: Eliminates one percent tax on purchasers of Class 4A commercial property transferred for consideration in excess of $1 million.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee [A2786 Detail]
Download: New_Jersey-2024-A2786-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblyman LOUIS D. GREENWALD
District 6 (Burlington and Camden)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
Co-Sponsored by:
Assemblyman Freiman and Assemblywoman Lopez
SYNOPSIS
Eliminates one percent tax on purchasers of Class 4A commercial property transferred for consideration in excess of $1 million.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act eliminating the tax on the transfer of controlling interests in Class 4A commercial property, repealing section 3 of P.L.2006, c.33.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 3 of P.L.2006, c.33 (C. 54:15C-1) is repealed; provided, however, that the repeal of section 3 of P.L.2006, c.33 (C.54:15C-1) shall not affect any obligation, lien or duty to pay taxes, interest or penalties which have accrued or may accrue by virtue of any taxes imposed pursuant to the provisions of section 3 of P.L.2006, c.33 (C. 54:15C-1), or which may be imposed with respect to any redetermination, correction, recomputation or deficiency assessment; and provided that all taxes and returns which would have been due and payable under the provisions of section 3 of P.L.2006, c.33 (C.54:15C-1) shall be due and payable as if that section were in effect; and provided that this repeal shall not affect the legal authority of the State to audit records and assess and collect taxes due or which may be due, together with such interest and penalties as have accrued or would have accrued thereon under the provisions of section 3 of P.L.2006, c.33 (C.54:15C-1); and provided that this repeal shall not affect any determination of, or affect any proceeding for, the enforcement thereof.
2. This act shall take effect immediately; provided however, that section 1 shall remain inoperative until the first day of the second month next following the date of enactment and shall apply to transfers made on or after that date.
STATEMENT
This bill eliminates the one percent tax imposed on the purchaser, in a non-deed transfer, of a controlling interest in an entity that owns Class 4A commercial property, otherwise known as the controlling interest transfer tax (CITT), if the total consideration for the transfer is in excess of $1 million. Class 4A commercial property is any kind of income-producing real property other than property classified as vacant land, residential property or apartments, farm property, and industrial property.
