mansion tax (sales, real estate, apartment)

[cool-breeze]

Is there a 1% tax for both the buyer and seller of a home of which the sale price is over 1 million dollars in new jersey. If so, is this in addition to the realty transfer fee. Is there such a fee if the home is less than 1 million?

[Bill Keegan]

Originally Posted by cool-breeze

Is there a 1% tax for both the buyer and seller of a home of which the sale price is over 1 million dollars in new jersey. If so, is this in addition to the realty transfer fee. Is there such a fee if the home is less than 1 million?

The mansion tax is over above & in addition to the RTF.
The RTF is payable buy the SELLER of the house, and it is assessed on the sale of any property, regardless of it's price. It's a graduated scale, sort of like income taxes.
The Mansion tax, or millionaires tax, is paid by the BUYER of any real estate with a sales price of $1 million or more. It is assessed at 1% of the sale price.

The NJ legislature has floated the idea of LOWERING that threshold, so the buyer of properties priced lower than that will be taxed as well.

[njkate]

[quote=Bill Keegan;4312693]The mansion tax is over above & in addition to the RTF.
The RTF is payable buy the SELLER of the house, and it is assessed on the sale of any property, regardless of it's price. It's a graduated scale, sort of like income taxes.
The Mansion tax, or millionaires tax, is paid by the BUYER of any real estate with a sales price of $1 million or more. It is assessed at 1% of the sale price.

The NJ legislature has floated the idea of LOWERING that threshold, so the buyer of properties priced lower than that will be taxed as well.[/QUOTE]


seems to me the only thing going on in the NJ legislature is dreaming up more taxes to force more citizens to flee the state rather then being fleeced...sheesh most decent homes in Nj are over the top as it is and they want to lower the threshold

[Obrero]

Originally Posted by cool-breeze

Is there a 1% tax for both the buyer and seller of a home of which the sale price is over 1 million dollars in new jersey. If so, is this in addition to the realty transfer fee. Is there such a fee if the home is less than 1 million?

The 1% fee the buyer pays is only on houses over $1 million and it's the biggest f-u tax NJ has (and we have a lot).

[njkate]

Originally Posted by UKOK

The 1% fee the buyer pays is only on houses over $1 million and it's the biggest f-u tax NJ has (and we have a lot).

Yes, it amounts to what $10K???? That is obscene and I don't care if someone can afford to pay a cool million for their home, that Fee (tax) is outrageous in addition to the RTF the seller has to pay

[ira]

Originally Posted by UKOK

The 1% fee the buyer pays is only on houses over $1 million and it's the biggest f-u tax NJ has (and we have a lot).

Absolutely.

And who says you could buy a mansion for a million dollars in NJ?

[colleeng47]

Originally Posted by njkate

Yes, it amounts to what $10K???? That is obscene and I don't care if someone can afford to pay a cool million for their home, that Fee (tax) is outrageous in addition to the RTF the seller has to pay

Well, they have to have the money to give to the politicians, their friends, and those who don't want to work, don't they? Where do you think they're going to get it otherwise?

[MaverickDD]

Originally Posted by njkate

Yes, it amounts to what $10K???? That is obscene and I don't care if someone can afford to pay a cool million for their home, that Fee (tax) is outrageous in addition to the RTF the seller has to pay

Actually, it amounts to at least $10,000 ... but most often more. (How many properties sell for exactly one million dollars?) It's one percent of the price, period. If the price is $1.2 million, the tax is $12,000. If the price is 2 million, the tax is $20,000!

(However, it's amazing how many properties now sell for $999,XXX. Under one million, there's no buyer's real estate sales tax! It's amazing how you can creatively reduce the sales price by a few hundred thousand if both buyer and seller are agreeable. Hint: for starters, Buyer pays all commisions.)

I don't know what the current law is, but when the tax was first enacted, it applied to the sale of any residential property with a price of one million dollars or more -- not exclusively "mansions." Hence, the purchase of a small apartment building would also be subject to the tax. The buyer of a smaller home sitting on valuable acreage could also be liable.

Living in New Jersey is kind of like that old 70s television commercial for White Owl cigars. Remember it? "Sooner or later, we're gonna getcha!"

However, as surprising as it may seem, there are some types of taxes that the State of New Jersey does not assess upon us. I won't even list them for fear that this will be forwarded to our "trusted" lawmakers, who will correct their oversight just after the next election! Nope, not till I'm gone.

[artDDS]

Does anyone know when the mansion tax has to be paid? Is it due at closing?

Thanks!

[Obrero]

Originally Posted by artDDS

Does anyone know when the mansion tax has to be paid? Is it due at closing?

Thanks!

Yep, has to be paid at closing.