Current Issues We’re Watching F
or more than a century, New Jersey Realtors® has been at the forefront of issues impacting private property rights and real estate, advocating on behalf of approximately 60,000 members, but also the almost 9 million residents in the Garden State. New Jersey Realtors® believes owning a home or business is the American Dream and essential for the growth of the economy. Here are seven vital industry issues New Jersey Realtors® is watching to support that belief.
1 Government Transparency New Jersey Realtors® has long supported policies that ensure the public has access to public records and official documents such as public meeting agendas, ordinances, and meeting minutes. Legislation should continue to be put forward to make it easier to access public records. By ensuring the public has access, we can be sure they are aware and have the opportunity to be a part of the policies enacted by elected officials. This in turn will lead to good government and tax savings for all New Jersey residents.
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State Budget Every March, the governor proposes a new budget for the next Fiscal Year. The State Legislature must then consider and vote on the proposal before June 30. During this process, New Jersey Realtors® reviews the budget proposal and works with the Administration and State Legislature to ensure no new taxes or fees affecting the real estate industry or homeownership are proposed. New Jersey Realtors® works to make homeownership more affordable by opposing new or increased taxes and fees, and advocating for programs beneficial to homeowners and the real estate industry.
REALTY TRANSFER FEE (RTF) In 1968, the RTF was enacted in New Jersey with the sole purpose of recording deed transfers during a real estate transaction. In the mid-2000’s, the fee increased by nearly 50 percent, which made it more expensive to buy and sell homes and businesses in New Jersey. In 2018, an RTF increase was proposed, but not adopted, on properties sold for over $1 million from one percent to two percent. If it was enacted, it would have increased taxes on those properties by a minimum of $10,000. New Jersey Realtors® strongly opposes any RTF increase proposals and believes the State Legislature should instead focus on ways to reduce the fee back to pre-2003 levels. New Jersey Realtors® also remains opposed to any efforts to allow individual municipalities to enact their own RTF.
PROFESSIONAL SERVICES TAX The association strongly opposes extending the Sales and Use Tax to commissions earned by real estate
professionals, which is already taxed under the state income tax. Double taxing commission payments would equate to a tax increase of over $1,000 on a home sold in New Jersey, making it more expensive for consumers to buy or sell a home.
SEASONAL RENTAL TAX New Jersey Realtors® strongly opposes any legislation that would extend the transient accommodation tax adopted in 2018 to traditional seasonal rentals in New Jersey.
Currently, the transient accommodation tax applies to rentals of less than 90 days rented through online marketplaces. Extending this tax to apply to traditional seasonal rentals could cost over $20 million in tax revenue and more than 2,000 jobs. At a time when more families are opting to vacation locally, taxing seasonal rentals would be detrimental to New Jersey’s tourism economy.
REAL ESTATE COMMISSION OPERATING FUNDS To protect the integrity of New Jersey’s real estate industry and consumers, New Jersey Realtors® believes it is essential the REC maintain a sufficient level of funding.
In order to do so, the State Legislature must ensure funds collected by the commission remain with it. Maintaining funding is especially important since in recent years, the REC has experienced difficulty updating its rules and providing important information to real estate licensees.
