Bill Text: NJ S2238 | 2022-2023 | Regular Session | Introduced
Bill Title: Phases out the transfer inheritance tax over two years.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-03-07 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2238 Detail]
Download: New_Jersey-2022-S2238-Introduced.html
Sponsored by:
Senator MICHAEL J. DOHERTY
District 23 (Hunterdon, Somerset and Warren)
SYNOPSIS
Phases out the transfer inheritance tax over two years.
CURRENT VERSION OF TEXT
As introduced.
An Act phasing out the transfer inheritance tax over two years, supplementing chapter 34 of Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Notwithstanding the provisions of R.S.54:34-2 to the contrary: a. for transfers made on or after the January 1 next following enactment of P.L. , c. (C. ) (now pending before the Legislature as this bill) through the December 31 next following enactment of P.L. , c. (C. ) the tax imposed under chapters 33 through 36 of Title 54 of the Revised Statutes shall be at 50% of the rates otherwise determined pursuant to R.S.54:34-2;
b. For transfers made on or after the second January 1 following enactment of P.L. , c. (C. ) (now pending before the Legislature as this bill) P.L. , c. (C. ) (now pending before the Legislature as this bill) there shall be no tax imposed under chapters 33 through 36 of Title 54 of the Revised Statutes.
2. This act shall take effect immediately.
STATEMENT
This bill reduces and finally eliminates the New Jersey transfer inheritance tax over two years.
The New Jersey transfer inheritance tax is one of the State's oldest taxes, originating in 1892 and imposed in roughly its present form since 1909. The tax is imposed on the transfer of all personal and real property in the estates of New Jersey resident decedents and on all tangible and real property located in New Jersey in the estates of nonresident decedents. The tax was extensively revised in 1985 to exempt from taxation transfers to spouses, ancestors and descendants of the decedent, but "lateral" transfers, bequests to brothers and sisters of the decedent or their children, and to nonrelatives are taxed at rates up to 16%.
This bill eliminates the transfer inheritance tax over two years. In the first calendar year following enactment of the bill, all of the transfers that are currently taxable remain taxable, but at 50% of the current tax rates. In the second year following enactment, taxes are no longer imposed.
