NJ Realty Transfer Tax Revenue Jumps 18% in August
New Jersey collected $3.2 billion in August tax revenue, driven by an 18% surge in real estate transfer fees.
Key points
- Realty transfer tax revenue in New Jersey increased by more than 18% during August.
- Total state tax collections reached $3.2 billion in August, up 14% year-over-year.
- The graduated percent fee on homes over $1 million generated nearly $70 million this fiscal year.
New Jersey realty transfer tax receipts rose 18% in August. This surge contributed to total state tax collections reaching $3.2 billion for the month.
The Department of the Treasury attributed the increase to high median home prices. Continued growth in sales volume also boosted these specific revenue streams.
Graduated fee drives state income
The graduated percent fee generated nearly $70 million this fiscal year. This tax applies to residential sales priced above one million dollars.
Total state tax collections increased 14% year-over-year through August. Income, business, and sales taxes all recorded positive growth during this period.
Local market defies national trends
New Jersey Realtors CEO Douglas Tomson states the local market remains strong. High mortgage rates have not suppressed demand within the state borders.
Tomson cites a robust local economy as a primary driver. He notes that bidding wars on properties continue despite national slowdowns.
Anchor benefits support housing affordability
The state began distributing initial Anchor program payments last week. More than two billion dollars funds this housing relief initiative in the current budget.
Homeowners earning up to $250,000 qualify for benefits between $1,000 and $1,500. Renters earning up to $150,000 receive payments ranging from $450 to $700.
NJ Spotlight News reports these benefits are held flat in the latest budget. The average property tax bill increased by $475 earlier this year.
