Bill Text: NJ S2198 | 2018-2019 | Regular Session | Introduced
Bill Title: Exempts transfers of property to Class C beneficiaries from transfer inheritance tax.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2018-03-08 - Introduced in the Senate, Referred to Senate Budget and Appropriations Committee [S2198 Detail]
Download: New_Jersey-2018-S2198-Introduced.html
Sponsored by:
Senator ANTHONY R. BUCCO
District 25 (Morris and Somerset)
SYNOPSIS
Exempts transfers of property to Class C beneficiaries from transfer inheritance tax.
CURRENT VERSION OF TEXT
As introduced.
An Act exempting transfers of property to Class C beneficiaries from the transfer inheritance tax, amending R.S.54:34-2.
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.
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%
For transfers made on or after January 1, 2019 there shall be no tax imposed under this subsection.
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. This act shall take effect immediately.
STATEMENT
This bill exempts transfers of property to Class C beneficiaries from the transfer inheritance tax to allow transfers of property to this class of beneficiaries to be treated on par with exempt transfers to certain other immediate family members.
Currently, the State of New Jersey imposes a transfer inheritance tax that applies to transfers of property made at death, or in contemplation of death, to certain classes of beneficiaries. Under the tax, transfers of property are taxed, at varying rates, dependent, in part, on the relationship between the decedent and the beneficiary.
The law currently exempts transfers of property to Class A beneficiaries (e.g. father, mother, grandparents, wife, husband, and children of a decedent), but requires tax to be imposed at rates between 11% and 16% on transfers of property to Class C beneficiaries (i.e. 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). Additionally, the law provides for tax to be imposed at rates between 15% and 16% on transfers of property to Class D beneficiaries (beneficiaries not otherwise classified).
This bill amends the transfer inheritance tax to provide an exemption for all transfers of property to Class C beneficiaries. The bill provides that no tax will be imposed or collected on transfers of property to a brother or sister of a decedent, to a wife or widow of a son of a decedent, or a husband or widower of a daughter of a decedent made on or after January 1, 2019.
