Bill Text: NJ S3446 | 2022-2023 | Regular Session | Introduced
Bill Title: Exempts all transfers made to lineal relatives from the Transfer Inheritance Tax.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2023-01-10 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S3446 Detail]
Download: New_Jersey-2022-S3446-Introduced.html
Sponsored by:
Senator ANTHONY M. BUCCO
District 25 (Morris and Somerset)
Senator PAUL A. SARLO
District 36 (Bergen and Passaic)
SYNOPSIS
Exempts all transfers made to lineal relatives from the Transfer Inheritance Tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting all transfers made to lineal relatives from the Transfer Inheritance Tax, amending R.S.54:34-2 and supplementing Title 54 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:34-2 is amended to read as follows:
54:34-2. a. (1) The transfer of property to a husband or wife, or a domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), of a decedent shall be taxed at the following rates:
For transfers made through December 31, 1984:
On any amount in excess of $15,000.00, up to $50,000.00 ......... 2%
On any amount in excess of $50,000.00, up to $100,000.00 ....... 3%
On any amount in excess of $100,000.00, up to $150,000.00 ..... 4%
On any amount in excess of $150,000.00, up to $200,000.00 ..... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ..... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ..... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ..... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ..... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00..11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00..13%
On any amount in excess of
$2,200,000.00, up to $2,700,000.00..14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00..15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made on or after January 1, 1985 there shall be no tax imposed under this paragraph.
(2) The transfer of property to a father, mother, grandparent, child or children of a decedent, or to any child or children adopted by the decedent in conformity with the laws of this State, or of any of the United States or of a foreign country, or the issue of any child or legally adopted child of a decedent, shall be taxed at the following rates:
For transfers through June 30, 1985:
On any amount in excess of $15,000.00, up to $50,000.00 ........ 2%
On any amount in excess of $50,000.00, up to $100,000.00 ....... 3%
On any amount in excess of $100,000.00, up to $150,000.00 ..... 4%
On any amount in excess of $150,000.00, up to $200,000.00 ..... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ..... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ..... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ..... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ..... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ....10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00..11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00..13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00..14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00..15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made from July 1, 1985 through June 30, 1986:
On any amount in excess of $50,000.00, up to $100,000.00 ....... 3%
On any amount in excess of $100,000.00, up to $150,000.00 ..... 4%
On any amount in excess of $150,000.00, up to $200,000.00 ..... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ..... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ..... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ..... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ..... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00. 12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00. 13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00. 14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00. 15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made from July 1, 1986 through June 30, 1987:
On any amount in excess of $150,000.00, up to $200,000.00 ..... 5%
On any amount in excess of $200,000.00, up to $300,000.00 ..... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ..... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ..... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ..... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00. 11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00..13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00..14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00..15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made from July 1, 1987 through June 30, 1988:
On any amount in excess of $250,000.00, up to $300,000.00..... 6%
On any amount in excess of $300,000.00, up to $500,000.00 ..... 7%
On any amount in excess of $500,000.00, up to $700,000.00 ..... 8%
On any amount in excess of $700,000.00, up to $900,000.00 ..... 9%
On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10%
On any amount in excess of $1,100,000.00, up to $1,400,000.00..11%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..12%
On any amount in excess of $1,700,000.00, up to $2,200,000.00..13%
On any amount in excess of $2,200,000.00, up to $2,700,000.00..14%
On any amount in excess of $2,700,000.00, up to $3,200,000.00..15%
On any amount in excess of $3,200,000.00 ............................... 16%
For transfers made on or after July 1, 1988 there shall be no tax imposed under this subsection.
(3) For transfers of property made on or after January 1, 2022 to a transferee with a lineal consanguineous relationship with a decedent, by blood or law, there shall be no tax imposed under this subsection.
b. (Deleted by amendment.)
c. The transfer of property to a brother or sister of a decedent, wife or widow of a son of a decedent, or husband or widower of a daughter of a decedent shall be taxed at the following rates:
(1) For transfers through June 30, 1988:
On any amount up to $1,100,000.00 ........................................... 11%
On any amount in excess of $1,100,000.00, up to $1,400,000.00..13%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..14%
On any amount in excess of $1,700,000.00 ............................... 16%
(2) For transfers made on or after July 1, 1988:
On any amount in excess of $25,000.00, up to $1,100,000.00 ..... 11%
On any amount in excess of $1,100,000.00, up to $1,400,000.00..13%
On any amount in excess of $1,400,000.00, up to $1,700,000.00..14%
On any amount in excess of $1,700,000.00 ............................... 16%
d. The transfer of property to every other transferee, distributee or beneficiary not hereinbefore classified shall be taxed at the following rates:
On any amount up to $700,000.00
............................................ 15%
On any amount in excess of $700,000.00 ................................. 16%
For every purpose of this subtitle all persons, including the decedent, shall be deemed to have been born in lawful wedlock and this provision shall apply to the estate of every decedent whether said decedent died before March 25, 1935, or shall die thereafter, but it shall not entitle any person to a refund of any tax paid before the aforementioned date.
(cf: P.L.2003, c.246, s.37)
2. (New section) a. Notwithstanding the provision of any law or regulation to the contrary, the payment of tax imposed pursuant to R.S.54:34-2 for a transfer made on or after January 1, 2022, but before the date of enactment of this section, which is exempt from tax pursuant to paragraph (3) of subsection a. of R.S.54:34-2, as amended by section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be deemed to be an erroneous payment for purposes of applying for a refund pursuant to R.S.54:35-10 and the application for refund may be made within 3 years from the date of enactment of this section. If an application for refund is based exclusively upon the enactment of P.L. , c. (pending before the Legislature as this bill), interest shall not be awarded.
b. Notwithstanding the provision of any law or regulation to the contrary, section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not be construed to restrict the enforceability of Chapter 26 of Title 18 of the New Jersey Administrative Code, except that each reference in Chapter 26 of Title 18 of the New Jersey Administrative Code to a "Class A transferee" shall be read as including the transferees referenced in paragraph (3) of subsection a. of R.S.54:34-2, as amended by section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill). The application of this subsection shall expire upon the application of a provision of law limiting the class of transferees established in paragraph (3) of subsection a. of R.S.54:34-2, as amended by section 1 of P.L. , c. (C. ) (pending before the Legislature as this bill).
3. This act shall take effect immediately.
STATEMENT
This bill exempts all transfers made to lineal relatives from the Transfer Inheritance Tax. The purpose of the bill is to expand the category of familial transferees covered as exempt Class A Transferees to include lineal relatives that descend or ascend from the decedent by blood or law beyond the first two generations of offspring.
Under current law, the Transfer Inheritance Tax explicitly exempts spouses, domestic partners, fathers, mothers, children, grandchildren, and grandparents as Class A Transferees. However, the statute does not explicitly extend exempt Class A Transferee status to such lineal relatives as great grandparents or great grandchildren. This bill extends exempt Class A Transferee status to all lineal relatives that descend or ascend from the decedent by blood or law.
The bill's extension of the Class A Transferee exemption to all lineal relatives applies to transfers made on or after January 1, 2022. The bill allows refund claims for Transfer Inheritance Tax payments for transfers made on or after January 1, 2022, but before the date of enactment, which become overpayments due to the enactment of the bill. The bill also contains an administrative provision to maintain the applicability of related regulatory provisions that may otherwise become obsolete on account of the bill's enactment.
