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S4196 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 4196
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 23, 2026
SUMMARY
Synopsis:
Modifies additional fees and taxes imposed on certain real
property transfers valued over $1 million; expands imposition of fees and
taxes to real property classified Industrial Property and certain Apartments.
Type of Impact:
Annual net revenue loss to the General Fund
Agency Affected:
Department of the Treasury
Office of
Legislative Services Estimate
Fiscal Impact
Year 1�
Year 2�
Year 3�
State Net Revenue Decrease
$164.4 million
$171.2 million
$178.3 million
�
The Office of Legislative Services (OLS) estimates that the bill
will decrease State revenue collections from the Graduated Percent Fee by a net
$164.4 million in FY2027, a net $171.2 million in FY2028, and a net $178.3
million in FY2029.� The estimate has two components.�
�
For FY2027, the OLS projects a loss of $263.8 million in
Graduated Percent Fee collections from the reduced fee rate schedule under the
bill.�
�
For FY2027, the OLS projects a gain of $99.4 million in Graduated
Percent Fee collections from newly imposing the fee on sales of industrial
property and apartment property of at least five units in which fewer than 10
percent of the residential units are affordable housing units.
BILL DESCRIPTION
����� The bill lowers the rates of the Graduated Percent Fee
that are imposed on certain real property transactions of more than $1.0
million, as shown in the table on the next page.� Under current law, the fee
applies to sales of property classified as residential, including apartment
property with fewer than five units; commercial (other than industrial or
apartments); cooperative units; and farm property other than land actively
devoted to agricultural use if it contains a structure intended or suited for
residential use.��
����� The bill also newly imposes the fee on sales of industrial
property and apartment property of at least five units in which fewer than 10
percent of the residential units are affordable housing units.
Comparison of Current
Graduated Percent Fee Rate Schedule to Rate Schedule under Bill
Value of Real
Property Transfer
Current Fee*
Fee Under Bill*
In
excess of $1.0 Million but not in excess of $2.0 Million
1.0 percent
0.0 percent
In
excess of $2.0 Million but not in excess of $2.5 Million
2.0 percent
1.0 percent
In
excess of $2.5 Million but not in excess of $3.0 Million
2.5 percent
1.5 percent
In
excess of $3.0 Million but not in excess of $3.5 Million
3.0 percent
2.0 percent
In
excess of $3.5 Million
3.5 percent
2.5 percent
*The
fee rate applies to the entire sales amount of the transaction
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS estimates that the bill will decrease State
revenue collections by a net $164.4 million in FY2027, a net $171.2 million in
FY2028, and a net $178.3 million in FY2029.
����� For FY2027, the OLS projects a revenue loss of $263.8
million from the bill�s reduced Graduated Percent Fee rate schedule.� The
revenue loss will be partially abated by the expansion of the categories of
property sales to which the fee applies.� Notably, the OLS estimates that the fee
base expansion will raise State revenue by $99.4 million in FY2027, of which
$88.3 million will accrue from sales of industrial properties and $11.2 million
from sales of apartment property of at least five units in which fewer than 10
percent of the residential units are affordable housing units.
Section:
Legislative Budget and Finance Office
Analyst:
Oscar Mendez
Revenue and Economic Policy Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).