Bill Text: NJ S546 | 2010-2011 | Regular Session | Introduced
Bill Title: Imposes realty transfer fee on certain transfers of apartments as well as commercial and industrial properties to finance municipal affordable housing projects.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-01-12 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S546 Detail]
Download: New_Jersey-2010-S546-Introduced.html
STATE OF NEW JERSEY
214th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2010 SESSION
Sponsored by:
Senator SANDRA B. CUNNINGHAM
District 31 (Hudson)
SYNOPSIS
Imposes realty transfer fee on certain transfers of apartments as well as commercial and industrial properties to finance municipal affordable housing projects.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel
An Act imposing a realty transfer fee on certain transfers of apartments as well as commercial and industrial properties to finance municipal affordable housing projects, and supplementing P.L.1968, c.49 (C.46:15-5 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. In addition to all other fees imposed under P.L.1968, c.49 (C.46:15-5 et seq.) and P.L.2004, c.66 (C.46:15-7.2 et seq.), there is imposed an affordable housing fee upon the grantee of a deed for the transfer of real property that is transferred for consideration in excess of $20,000,000 recited in the deed and that is classified pursuant to the requirements of N.J.A.C.18:12-2.2 as either Class 4A "commercial properties" or Class 4B "industrial properties" or Class 4C "apartments." The fee shall be equal to 0.5 percent of the entire amount of consideration and shall be collected by the county recording officer at the time the deed is offered for recording.
b. The county recording officer shall account for and remit to the county treasurer the proceeds collected pursuant to this section. On the tenth day of each month following the month of collection, the county treasurer shall remit the amount of fee revenue collected to the chief financial officer of the municipality in whose jurisdiction the transferred real property is situated, and shall inform the State Treasurer and the Council on Affordable Housing in the Department of Community Affairs of the remittance.
c. The municipality shall use the proceeds from the fee imposed under this section exclusively to finance the acquisition, construction, and rehabilitation of low income housing as defined in subsection c. of section 4 of P.L.1985, c.222 (C.52:27D-304) and of moderate income housing as defined in subsection d. of section 4 of P.L.1985, c.222 (C.52:27D-304). If, within five years of the receipt of collections, a municipality has not allocated the amount received to a specific housing project for low and moderate income households, the Council on Affordable Housing in the Department of Community Affairs shall order the municipality to remit the amount unallocated by the municipality following five years of its receipt to the State Treasurer who shall credit the amount received to the Neighborhood Preservation Nonlapsing Revolving Fund established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320).
d. The fee imposed by this section shall not apply to a transfer of real property exempt under subsection b. of section 8 of P.L.2004, c.66 (C.46:15-7.2).
2. This act shall take effect immediately and apply to transfers of real property occurring on or after the first day of the third month following the date of enactment.
STATEMENT
This bill levies a 0.5 percent realty transfer fee on the buyer of apartments as well as commercial and industrial real estate transacted for more than $20 million. The municipality in which the property being transferred is located receives the fee proceeds to exclusively fund the acquisition, construction, and rehabilitation of low and moderate income housing. If the municipality has not pledged the proceeds to a specific affordable housing project within five years of their receipt, the sums collected revert to the State to support its affordable housing programs.
The bill imposes the fee on Class 4A "commercial properties", Class 4B "industrial properties", and Class 4C "apartments" as defined in N.J.A.C.18:12-2.2.
The new fee does not apply to property transfers in which the buyer is a section 501(c)(3) charitable organization under the federal Internal Revenue Code. The fee also does not apply to commercial property transfers that are incidental to a corporate merger or acquisition in which the equalized assessed value of the real property transferred is less than 20 percent of the total value of all assets exchanged in the merger or acquisition.
