From NJAR, a Realtor publication, with my editorializing mixed in
Governor Proposes
Higher Real Estate Taxes
For the second year in a row, Governor McGreevey has proposed increasing the Realty Transfer Fee (RTF) in order to balance the state's budget. As the buyer or seller of a home in New Jersey priced above $150,000, you will be affected by this change. The Governor is also planning a one percent tax on the sale of homes priced at $1 million- paid for by the buyer.
The RTF was established in 1968. The purpose of the fee was to assist the State of New Jersey in tracking the transfer of title to real property. The act specifically required a record be made of the selling price of the real property. This provides the principal basis for developing average assessment ratios for each of the municipalities in the state. A portion of the funds collected from the RTF currently are retained by the counties and also directed to the Shore Protection Fund and the Neighborhood Preservation Program. The remainder of the funds goes to the state General Treasury.
If the Governor's proposal becomes law, a home owner who sells his/her home at the average sale price above $150,000 of $356,000* will pay the state $2,732 in tax, a 76% increase in under two years. (See chart below)
| RTF paid in 2003 | RTF paid inFY 2004 | RTF Proposed in FY 2005 | Difference | Percentage Increase |
| $1,555 | $2,152 | $2,732 | $1,177 | 76% |
The buyer of a home priced at $1 million will pay the state an additional $10,000 in tax.
New Jersey is already experiencing a serious problem with respect to affordable housing. Fewer families are realizing the American dream of homeownership, as housing prices have far outpaced average incomes. Adding additional real estate taxes will only exacerbate this problem.
These proposals directly affect sellers and buyers like you. Please write to Governor McGreevey asking him to find another way to balance New Jersey's budget.
*figure provided by Superior Information Services
http://www.njar.com/consumers.shtml
Governor Proposes
Higher Real Estate Taxes
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For the second year in a row, Governor McGreevey has proposed increasing the Realty Transfer Fee (RTF) in order to balance the state's budget. As the buyer or seller of a home in New Jersey priced above $150,000, you will be affected by this change. The Governor is also planning a one percent tax on the sale of homes priced at $1 million- paid for by the buyer.
The RTF was established in 1968. The purpose of the fee was to assist the State of New Jersey in tracking the transfer of title to real property. The act specifically required a record be made of the selling price of the real property. This provides the principal basis for developing average assessment ratios for each of the municipalities in the state. A portion of the funds collected from the RTF currently are retained by the counties and also directed to the Shore Protection Fund and the Neighborhood Preservation Program. The remainder of the funds goes to the state General Treasury.
If the Governor's proposal becomes law, a home owner who sells his/her home at the average sale price above $150,000 of $356,000* will pay the state $2,732 in tax, a 76% increase in under two years. (See charts below)
| RTF paid in 2003 | RTF paid inFY 2004 | RTF Proposed in FY 2005 | Difference | Percentage Increase |
| $1,555 | $2,152 | $2,732 | $1,177 | 76% |
| County | Average 2003 Sale Price* | RTF Paid in FY 2003 | RTF Paid in FY 2004 | RTF Proposed in FY 2005 | % Increase |
| Atlantic | $275,276 | $1,151 | $1,522 | $1,965 | 71% |
| Bergen | $463,993 | $2,095 | $2,994 | $3,758 | 79% |
| Burlington | $279,134 | $1,171 | $1,552 | $2,002 | 71% |
| Camden | $236,060 | $955 | $1,216 | $1,593 | 79% |
| Cape May | $463,401 | $2,092 | $2,990 | $3,752 | 71% |
| Cumberland | $202,595 | $788 | $955 | $1,275 | 67% |
| Essex | $367,772 | $1,614 | $2,244 | $2,844 | 79% |
| Gloucester | $245,552 | $1,003 | $1,290 | $1,683 | 62% |
| Hudson | $293,640 | $1,243 | $1,665 | $2,140 | 76% |
| Hunterdon | $418,274 | $1,866 | $2,638 | $3,324 | 68% |
| Mercer | $336,679 | $1,458 | $2,001 | $2,548 | 72% |
| Middlesex | $313,292 | $1,347 | $1,819 | $2,326 | 78% |
| Monmouth | $406,732 | $1,809 | $2,548 | $3,214 | 75% |
| Morris | $449,592 | $2,023 | $2,882 | $3,621 | 73% |
| Ocean | $314,405 | $1,347 | $1,827 | $2,337 | 78% |
| Passaic | $307,241 | $1,311 | $1,771 | $2,269 | 79% |
| Salem | $230,687 | $928 | $1,174 | $1,542 | 73% |
| Somerset | $436,420 | $1,957 | $2,779 | $3,496 | 73% |
| Sussex | $297,231 | $1,261 | $1,693 | $2,174 | 66% |
| Union | $343,690 | $1,493 | $2,056 | $2,615 | 79% |
| Warren | $292,504 | $1,238 | $1,657 | $2,129 | 72% |
Counties in BOLD are within in total or partially the Highlands Act boundaries
The buyer of a home priced at $1 million will pay the state an additional $10,000 in tax.
New Jersey is already experiencing a serious problem with respect to affordable housing. Fewer families are realizing the American dream of homeownership, as housing prices have far outpaced average incomes. Adding additional real estate taxes will only exacerbate this problem.
These proposals directly affect sellers and buyers like you. Please write to Governor McGreevey asking him to find another way to balance New Jersey's budget.
If this bill passes, NJ will soon experience the artificial real esate inflation that much of California sees, huge tracts of land are "offlimits" to development, and existing housing stock make it impossible for young families to realize their dream of home ownership. *figure provided by Superior Information Services
Letter to Governor McGreevey on Realty Transfer Fee
Please select the desired county from either the Buyer or Seller Dropdown List and click the Go button. The letter to Governor McGreevey will open for you to print. Once you have signed the letter fax it to (609) 292-3454.
Please click here to keep McGreedy's hands off your land
My bigger point involved here, the increased RTF taxes will be greater than the entire pithy funding given to municipalities in Highlands towns, that is, they increased the tax taken by a property owner forced to sell his land because of zero use zoning ordinances, and will only give a portion of it back to the towns in tax offsets. It's hard not to invoke Godwin's Rule here, even Mugabe would be impressed by the grand scale of confiscation being attempted by NJ Dem's, Rep's, environmentalists, et al.