New Jersey Mansion Tax Hike Sparks Backlash From Luxury Owners
Proposed Mansion Tax Hike Faces Backlash The proposal to hike New Jersey's Mansion Tax has sparked a fiery backlash in the real estate industry. Meanwhile, state lawmakers find themselves in heated discussions about the tax's potential impact. Currently, the proposal suggests raising the 1% levy on residential sales above $1 million. It would move to a tiered system: 2% for sales over $1 million and up to $2 million, and 3% for those exceeding $2 million. These changes could affect residential and potentially commercial properties. This underscores significant tax implications for high-value transactions in the state. Homeowners are deeply concerned. The restructured tax threatens to burden new home buyers financially since they typically pay the Mansion Tax at closing. The $1 million threshold has been stagnant for over 20 years, with no adjustments for inflation. In today's economy, this figure has taken on new dimensions with the rising home prices . New Jersey's rea...