Modifies additional fee and taxes imposed on certain real property transfers valued over $1 million; expands imposition of fees and taxes to real property classified Industrial Property and certain Apartments.

2026-2027 Regular Session

The bill expands and increases transfer taxes/fees on real estate over $1 million, extending to industrial and certain apartment properties.

Summary of Bill A 5164 (Session 222, New Jersey)

Purpose and intent

The bill modifies and expands the imposition of additional fees and taxes on real property transfers in New Jersey, with a focus on transfers valued over $1 million.

It broadens the scope of property classifications subject to these fees, extending applicability to industrial property and certain apartment properties.

Key provisions and changes

Threshold for transfer tax/fee changes: Applies to real property transfer transactions valued at more than $1,000,000.

Expanded property classifications:

Property categories affected now include industrial property.
Certain apartment properties (types or classifications specified in the bill) are also brought under the additional fee/tax regime.

Nature of fees/taxes: The bill specifies the creation or adjustment of additional transfer-related charges (fees and taxes) on these higher-valued transfers. Details likely include:

The rate or schedule for the additional fee/tax (e.g., percentage-based or fixed amounts).
Whether the fee/tax is imposed by a state or local authority.

Administration and collection: Provisions may outline who administers and collects the additional transfer charges, and how funds are deposited and accounted for (e.g., dedicated revenue streams or general fund implications).

Who/what is affected

Buyers and sellers of high-value properties: Real property transfers valued over $1 million will encounter the expanded fees/taxes.

Industrial property owners and developers: Transfers involving industrial real estate fall within the scope of the bill.

Apartment property transactions: Certain apartment properties (as defined in the bill) are subject to the new or adjusted charges.

Localities and the state government: Revenue from these transfers would (depending on the bill) impact local treasuries or the state budget, and may influence property market dynamics.

Procedural and timeline considerations

The bill would amend existing statutes governing real property transfer fees/taxes; it may specify:

Effective date or phase-in period for the new/expanded charges.
Instructions for implementing agencies, including notices, filings, and reporting requirements.
Transitional provisions for ongoing transfers or contracts at the time of enactment.

Possible implications for notice, compliance, and enforcement provisions to ensure accurate assessment and collection.

Potential impact (policy and market)

Revenue implications: Increased revenue from high-value real estate transfers, potentially earmarked for specific programs or general funds, depending on statutory text.

Market behavior: Higher costs on large-scale property deals could influence deal structures, timing, and the mix of property types transacted.

Equity considerations: Expands tax/fee burden to additional property classes, which could have distributional effects across developers, investors, and tenants in targeted sectors.

Note: The summary reflects the bill’s stated scope and typical provisions for this type of legislation. For precise rates, exact classifications, effective dates, and revenue allocations, consult the bill’s text as introduced and any subsequent amendments or fiscal notes.