1% Fee on Commercial Properties
Wednesday, May 5, 2021
  • 1% Fee on Commercial Properties Applies August 1
  • The 1% fee (paid by the buyer) on the sale of commercial property over $1 million applies to deed and non-deed transfers occurring on or after August 1, 2006.

    The law expanding the 1% fee to include commercial property was enacted on July 8, 2006 as part of the state’s FY 2007 budget. NJAR secured an amendment to exempt those commercial transactions where a contract was fully executed by July 1, 2006 and the deed is recorded on or before November 15, 2006. Buyers who fall under this exemption are required to pay the 1% fee and request a refund from the New Jersey Division of Taxation within one year following the date of the deed recording.
    Visit htt p://www.njar.com/private/1percent.shtml for more information.

     

  • Division of Taxation Issues Amended Memo on 1% Fee
  • Assistant Director of the New Jersey Division of Taxation Steven M. Sylvester issued an amended memorandum on August 11, 2006 to state deed recorders concerning the realty transfer fee (RTF) law that took effect on August 1, 2006. The law expanded the 1% fee to include commercial property over $1 million and took effect on deed and non-deed transfers occurring on or after August 1, 2006.

    The Realty Transfer Fee Affidavit of Consideration for Buyers and the Realty Transfer Fee Affidavit of Consideration for Sellers are in an ongoing revision process. Visit http://www.state.nj.us/treasury/taxation/index.html? lpt/localtax.htm~mainFrame to download the affidavits. Keep checking back for the latest versions. View the amended memo at http://www.state.nj.us/treasury/taxation/pdf/lpt/rtf clerksletter.pdf.