New JerseyBill would end tax on controlling stakes in commercial property owners
If enacted, sellers would stop paying a 1% tax on transfers over $1 million of controlling stakes in organizations that own income-producing commercial property, when no property deed is used.
What it does
Sellers would stop paying the 1% tax on transfers over $1 million of controlling stakes in commercial property owners when no property deed is used. This would apply from the first day of the second month after enactment. Taxes owed on earlier transfers would remain due.
Argument forSellers could keep more of the money from covered transfers made after the repeal starts because they would no longer pay the 1% tax.
Argument againstNew Jersey could collect less tax revenue from covered transfers because sellers would no longer owe the 1% tax.
More detail
The state would end the 1% tax on covered sellers. This covers transfers over $1 million of controlling stakes in organizations that own income-producing commercial property, without transferring the property by deed. Vacant land, housing, farms, and industrial property are excluded. Earlier tax bills and returns would remain due. The state could still audit records and collect earlier taxes, interest, and penalties. The repeal would apply to transfers made on or after the first day of the second month following enactment.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 28Introduced in the Senate, Referred to Senate Economic Growth CommitteeIntroduced
Taxes & Budget