Senator Kristin Corrado (R-40) criticized New Jersey Democrats this week for rushing a major change to the state’s Mansion Tax, accusing them of enacting the policy with little notice or input from the real estate industry.
The new law (S-4666/A-5804), introduced June 23, signed by the governor on June 30, and effective July 10, shifts the 1% surcharge from buyers to sellers of homes over $1 million and significantly increases the tax rate. Previously, the surcharge had applied only to buyers since its enactment in 2004 and 2006.
“Trenton Democrats abruptly changed the Mansion Tax to shift the tax burden to home sellers—a blatant bait-and-switch that made New Jersey’s Mansion Tax an ‘Exit Tax’,” Corrado said.
She noted that the nine-day window between the bill’s introduction and its implementation left realtors and attorneys without time to adapt or receive guidance, calling the process confusing and likely to spark legal disputes.
“The lack of clarity is appalling, and the confusion behind the sudden changes will lead to future litigation amongst buyers, sellers, and attorneys,” Corrado added.
Corrado warned that the policy shift would have long-term impacts on the housing market and criticized the lack of a transition period in the legislation.
