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New Jersey Governor Signs LAW TO TAX NEW HOMES 2.5 percent!

By
Real Estate Agent with Re/Max Real Estate Limited

It is my understanding that Governor Corzine has sign a bill last Friday which essentially put a 2.5 percent tax on the gross value of a new home in New Jersey payable by the seller for Mt Laurel contribution. About a year or more ago he also raised the transfer tax to 1.2 percent of the gross sale price to the seller. A few years ago they added the Million Aire tax on all homes $1,000,000 and over to the Purchasers.

So today a new home sold has 4.7 percent of the gross added on houses over $1,000,000 and 3.7 percent under $1,000,000. This is very bad for New Jersey market. It is bad for brokers too because sellers are looking to find money everywhere and the Broker will be one of the places they will come.

Builders are really being hurt here. It is a huge burden to carry.

 

Richard

 

Visit : newhomesbyrichard.com

Show All Comments
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Hard to believe but I believe that this may even be worse than Montgomery County, MD.

1% County, 1/2% State, .69-1% Transfer

It comes to about 23,450 which, of course, drives buyers to VA to buy homes.  Maryland is very high too. 

Corzine doesn't care.  Didn't he campaign promising something different.

He has all he needs. 

Jul 24, 2008 11:24 AM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

Exactly, they are out of control. They are pushing people away from this state.

Also jobs, who wants to build with all this tax. You take the risk and get clobbered either way.

Jul 24, 2008 11:36 AM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I am surprised to read about the tax in this slumping market.

Jul 24, 2008 11:57 AM
Jim Dunlap
Roberts Realty - Yucca Valley, CA

I blame the mentality of the people who vote for these kind of politicans.  I recently saw a Penn and Teller video on YouTube where they had a gal walking around at some kind of outdoor "green" conference.  Hundreds of these so called environmentalists signed a petition to ban the use of dyhydrogen monoxide (scientific name for water).  The gal simply told some of the things water is used for, found in, and health effects.  "It's found in lakes and resevors, its found in pesticides, nuculer powerplants use it, too much of it can cause nasuea, vomiting, excedssive urination...."  And I thought, these people vote!

Jul 24, 2008 12:30 PM
Richard Stabile
Re/Max Real Estate Limited - Oradell, NJ
Bergen County New Homes Builder Realtor

I am a builder, a Realtor, and a father of 3. If you read my blogs I am about saving mother earth but. I do not take a position or comment until i do my research. I seen a law go onto place for the hole state to stop 13 houses in a northern Bergen town. The law is our C1 steam law in New Jersey.

Well the law is a joke in Bergen a fully developed county. The builder won a 12 year law suit against the town and envioronmentist however we  got stuck with a law Governor McGreevey sign as he resigned to pay back the extreme environmentalist. There is no balance.

Jul 24, 2008 01:16 PM
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