Senator Kristin Corrado criticized Trenton Democrats for quickly passing a new law altering New Jersey’s Mansion Tax. The legislation, identified as S-4666/A-5804, was introduced on June 23rd and signed by the governor on June 30th, with the changes taking effect today. This left the affected industry with only nine days to adjust.
“Trenton Democrats abruptly changed the Mansion Tax to shift the tax burden to home sellers—a blatant bait-and-switch that made New Jersey’s Mansion Tax an ‘Exit Tax’,” said Sen. Corrado. “This hurried process, passed strictly along party lines, lacked adequate notice for the public and the real estate industry, limiting their ability to offer comments and perspectives on the major policy change.”
Initially established in 2004 and 2006, the Mansion Tax imposed a 1% surcharge on buyers of homes valued over a million dollars. The revised law now places this tax responsibility on sellers while significantly increasing the tax rate.
“Given the radical policy change, the legislation should have been drafted to provide that none of the provisions would take effect for at least a month or a longer period,” Sen. Corrado continued. “Relators and real estate attorneys have been given zero guidance or time to adapt to these changes, which has created confusion and angst among those in the industry. The lack of clarity is appalling, and the confusion behind the sudden changes will lead to future litigation amongst buyers, sellers, and attorneys.”
