The realty transfer fee (RTF) has been in effect in New Jersey since 1968 when the federal government discontinued the federal documentary tax on real estate transfers and gave state and local governments the right to levy transfer fees.
The study found that since its inception as a fee paid to the counties for recording mortgages, the realty transfer fee has been increased four times. In the course of raising the rate, the fee has been made more progressive, in that rates increase substantially as the price of the house increases. The study found that home prices have been increasing steadily since 1995, with home prices nearly doubling between 1999 and 2004. Rising home prices have not slowed sales, with new and existing home sales on the upswing since 2001.
Full report in PDF format (February 8, 2006)
An Economic Analysis of New Jersey's Realty Transfer Fee
Prepared by: The Rutgers Economic Advisory Service Center for Urban Policy Research
through the Edward J. Bloustein School of Planning and Public Policy at Rutgers, The State University of New Jersey
Learn more about the researcher: Dr. Nancy H. Mantell
Click here for more information on New Jersey's realty transfer fee.
Additional resources on realty transfer fees:
Center for Urban Policy Research
www.policy.rutgers.edu/cupr
NATIONAL ASSOCIATION OF REALTORS® Field Guide to Realty Transfer Taxes
www.realtor.org/libweb.nsf/pages/fg717
New Jersey Division of Taxation
www.state.nj.us/treasury/taxation
New Jersey Division of Taxation - RTF Information
www.nj.gov/treasury/taxation/index.html?lpt/rtf.htm~mainFrame