New Jersey Realtors Strongly Opposes Realty Transfer Fee Increase

Trenton, N.J. (June 29, 2018) – New Jersey Realtors strongly opposes the one percent increase to the realty transfer fee on homes over $1 million, currently under consideration by the New Jersey state legislature as part of the 2019 budget negotiations.

New Jersey Realtors, the trade association representing more than 52,000 members, has raised concerns that bill A-4295/S-2813 will add a minimum of $10,000 to the expenses of buying a home and hurt counties like Bergen, Hudson, Essex, Monmouth and Cape May which have some of New Jersey’s highest home values.

“In many areas in New Jersey, owning a million-dollar home does not necessarily make the homeowner a millionaire. There are about 60,000 homes worth over a million dollars in the Garden State, which means one in every 43 homes are worth $1 million or more,” said CEO of New Jersey Realtors Jarrod Grasso. “New Jersey is a high cost state, so adding any additional real estate tax greatly impacts many of our residents who work hard to afford the homes they purchase.”

When combined with the effects of the new federal tax law changes enacted last year, this proposal will be another financial hit for potential New Jersey property owners and could detract buyers of commercial and residential properties from moving to the Garden State.

“We cannot afford to add any more expenses for New Jersey buyers. We already have some of the nation’s highest property taxes and adding another financial hurdle will be a detriment to New Jersey’s housing market, our economy, and will result in an outmigration,” Grasso said.

The state legislature is also considering bill A-4294-S-2814, which proposes a sales tax to seasonal rental properties. For communities that rely on tourism, an additional tax on rental homes could drive tourists to other neighboring states that are more affordable.

“Adding an additional tax to seasonal rental properties not only hurts our homeowners and communities who depend on tourists, but also hurts our tourism industry, which could amount to a $100 million loss in economic activity if a sales tax is enacted,” said Grasso.

The state legislature has until June 30 to vote on these bills and approve the budget or Gov. Murphy could order a state government shutdown.

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New Jersey Realtors, the voice of real estate for New Jersey for 100 years, is a non-profit organization serving the professional needs of more than 52,000 Realtor and Realtor-Associate members engaged in all facets of the real estate business. In addition to serving the professional needs of its members, NJ Realtors is dedicated to enhancing the ability of its members to conduct their business successfully while maintaining the preservation of private property rights. Realtor is a registered collective membership mark, which may be used only by real estate professionals who subscribe to the Realtor organization’s strict Code of Ethics and are members of the national, state and local Realtor organizations. For more information, visit njrealtor.com.