The state legislature is currently considering increasing the realty transfer fee and extending a sales tax to seasonal rental properties, which would add another financial burden for potential homeowners and greatly impact New Jersey's summer tourism industry.
Increasing the realty transfer fee by one percent for homes being sold over $1 million will add one more financial hurdle for new homeowners who are already facing some of the nation's highest living expenses. In New Jersey, about 60,000 homes are worth over $1 million, which means one in every 43 homes are $1 million or more.
Adding a seasonal sales tax on rental properties would also be detrimental to our destination communities that depend on tourism. If a seasonal rental tax is enacted, the Garden State could lose approximately $100 million in economic activity and an immediate loss of $20 million in tax revenue, according to a 2015 Oxford Economics Company study.
New Jersey Realtors® urges you to let your representatives know that these financial burdens hinder homeownership and will have negative impacts on the Garden State's tourism industry.