N.J. Stat. tit. 54, ch. 34

in effect

N.J. Stat. § 54:34-1 Transfers taxable.

54:34-1. Except as provided in section 54:34-4 of this Title, a tax shall be and is hereby imposed at the rates set forth in section 54:34-2 of this Title upon the transfer of property, real or personal, of the value of $500.00 or over, or of any interest therein or income therefrom, in trust or otherwise, to or for the use of any transferee, distributee or beneficiary in the following cases: a. Where real or tangible personal property situated in this State or intangible personal property wherever situated is transferred by will or by the intestate laws of this State from a resident of this State dying seized or possessed thereof. b. Where real or tangible personal property within this State of a decedent not a resident of this State at the time of his death is transferred by will or intestate law. c. Where real or tangible personal property within this State of a resident of this State or intangible personal property wherever situate of a resident of this State or real or tangible personal property within this State of a nonresident, is transferred by deed, grant, bargain, sale or gift made in contemplation of the death of the grantor, vendor or donor, or intended to take effect in possession or enjoyment at or after such death. A transfer by deed, grant, bargain, sale or gift made without adequate valuable consideration and within three years prior to the death of the grantor, vendor or donor of a material part of his estate or in the nature of a final disposition or distribution thereof, shall, in the absence of proof to the contrary, be deemed to have been made in contemplation of death within the meaning of subsection c. of this section; but no such transfer made prior to such three-year period shall be deemed or held to have been made in contemplation of death. d. Where by transfer of a resident decedent of real or tangible personal property within this State or intangible property wherever situate, or by transfer of a nonresident decedent of real or tangible personal property within this State, a transferee, distributee or beneficiary comes into the possession or enjoyment therein of: (1) An estate in expectancy of any kind or character which is contingent or defeasible, transferred by an instrument taking effect on or after July 4, 1909; or (2) Property transferred pursuant to a power of appointment contained in an instrument taking effect on or after July 4, 1909. e. When a decedent appoints or names one or more executors or trustees and bequeaths or devises property to him or them in lieu of commissions or allowances, the transfer of which property would otherwise be taxable, or appoints him or them his residuary legatee or legatees, and the bequest, devise or residuary legacy exceeds what would be reasonable compensation for his or their services, such excess shall be deemed a transfer liable to tax. The Superior Court having jurisdiction in the case, shall determine what is a reasonable compensation. f. The right of the surviving joint tenant or joint tenants, person or persons, to the immediate ownership or possession and enjoyment of real or personal property held in the joint names of two or more persons, or deposited in banks or other institutions or depositories in the joint names of two or more persons and payable to either or the survivor, excluding, however, the right of a spouse, as a surviving joint tenant with his or her deceased spouse, or the right of a domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), as a surviving joint tenant with that person's deceased domestic partner, to the immediate ownership or possession and enjoyment of a membership certificate or stock in a cooperative housing corporation, the ownership of which entitles such member or stockholder to occupy real estate for dwelling purposes as the principal residence of the decedent and spouse or domestic partner, as applicable, shall upon the death of one of such persons, be deemed a transfer taxable in the same manner as though such property had belonged absolutely to the deceased joint tenant or joint depositor and had been devised or bequeathed by his will to the surviving joint tenant or joint tenants, person or persons, excepting therefrom such part of the property as such survivor or survivors may prove to the satisfaction of the Director of the Division of Taxation to have originally belonged to him or them and never to have belonged to the decedent. In the case of a nonresident decedent, subsection f. of this section shall apply only to real or tangible personal property within this State. Amended 1951, c.250; 1953, c.51, s.139; 1979, c.413; 1991, c.91, s.510; 2003, c.246, s.36.

N.J. Stat. § 54:34-1.1 Irrevocable disposition of reserved income, rights, etc., over property transferred 3 years prior to death

A transfer of property by deed, grant, bargain, sale or gift wherein the transferor is entitled to some income, right, interest or power, either expressly or by operation of law, shall not be deemed a transfer intended to take effect at or after transferor's death if the transferor, more than 3 years prior to death, shall have executed an irrevocable and complete disposition of all reserved income, rights, interests and powers in and over the property transferred. L.1955, c. 135, p. 623, s. 1.

N.J. Stat. § 54:34-2 Transfer inheritance tax; phase-out.

54:34-2. a. (1) The transfer of property to a husband or wife, or a domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), of a decedent shall be taxed at the following rates: For transfers made through December 31, 1984: On any amount in excess of $15,000.00, up to $50,000.00 ......... 2% On any amount in excess of $50,000.00, up to $100,000.00 ........ 3% On any amount in excess of $100,000.00, up to $150,000.00 ....... 4 % On any amount in excess of $150,000.00, up to $200,000.00 ....... 5% On any amount in excess of $200,000.00, up to $300,000.00 ....... 6% On any amount in excess of $300,000.00, up to $500,000.00 ....... 7% On any amount in excess of $500,000.00, up to $700,000.00 ....... 8% On any amount in excess of $700,000.00, up to $900,000.00 ....... 9% On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10% On any amount in excess of $1,100,000.00, up to $1,400,000.00 ..11% On any amount in excess of $1,400,000.00, up to $1,700,000.00 ..12% On any amount in excess of $1,700,000.00, up to $2,200,000.00 ..13% On any amount in excess of $2,200,000.00, up to $2,700,000.00 ...14% On any amount in excess of $2,700,000.00, up to $3,200,000.00 ..15% On any amount in excess of $3,200,000.00 .............................. 16% For transfers made on or after January 1, 1985 there shall be no tax imposed under this paragraph. (2) The transfer of property to a father, mother, grandparent, child or children of a decedent, or to any child or children adopted by the decedent in conformity with the laws of this State, or of any of the United States or of a foreign country, or the issue of any child or legally adopted child of a decedent, shall be taxed at the following rates: For transfers through June 30, 1985: On any amount in excess of $15,000.00, up to $50,000.00 ........ 2% On any amount in excess of $50,000.00, up to $100,000.00 ....... 3% On any amount in excess of $100,000.00, up to $150,000.00 ...... 4% On any amount in excess of $150,000.00, up to $200,000.00 ...... 5% On any amount in excess of $200,000.00, up to $300,000.00 ...... 6% On any amount in excess of $300,000.00, up to $500,000.00 ...... 7% On any amount in excess of $500,000.00, up to $700,000.00 ...... 8% On any amount in excess of $700,000.00, up to $900,000.00 ...... 9% On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10% On any amount in excess of $1,100,000.00, up to $1,400,000.00 . 11% On any amount in excess of $1,400,000.00, up to $1,700,000.00 . 12% On any amount in excess of $1,700,000.00, up to $2,200,000.00 ..13% On any amount in excess of $2,200,000.00, up to $2,700,000.00 ..14% On any amount in excess of $2,700,000.00, up to $3,200,000.00 ..15% On any amount in excess of $3,200,000.00 .............................. 16% For transfers made from July 1, 1985 through June 30, 1986: On any amount in excess of $50,000.00, up to $100,000.00 ....... 3% On any amount in excess of $100,000.00, up to $150,000.00 ...... 4% On any amount in excess of $150,000.00, up to $200,000.00 ...... 5% On any amount in excess of $200,000.00, up to $300,000.00 ...... 6% On any amount in excess of $300,000.00, up to $500,000.00 ...... 7% On any amount in excess of $500,000.00, up to $700,000.00 ...... 8% On any amount in excess of $700,000.00, up to $900,000.00 ...... 9% On any amount in excess of $900,000.00, up to $1,100,000.00 ....10% On any amount in excess of $1,100,000.00, up to $1,400,000.00 ..11% On any amount in excess of $1,400,000.00, up to $1,700,000.00 ..12% On any amount in excess of $1,700,000.00, up to $2,200,000.00 ..13% On any amount in excess of $2,200,000.00, up to $2,700,000.00 ..14% On any amount in excess of $2,700,000.00, up to $3,200,000.00 ..15% On any amount in excess of $3,200,000.00 ............................. 16% For transfers made from July 1, 1986 through June 30, 1987: On any amount in excess of $150,000.00, up to $200,000.00 ...... 5% On any amount in excess of $200,000.00, up to $300,000.00 ...... 6% On any amount in excess of $300,000.00, up to $500,000.00 ...... 7% On any amount in excess of $500,000.00, up to $700,000.00 ...... 8% On any amount in excess of $700,000.00, up to $900,000.00 ...... 9% On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10% On any amount in excess of $1,100,000.00, up to $1,400,000.00 . 11% On any amount in excess of $1,400,000.00, up to $1,700,000.00 ..12% On any amount in excess of $1,700,000.00, up to $2,200,000.00 ..13% On any amount in excess of $2,200,000.00, up to $2,700,000.00 ..14% On any amount in excess of $2,700,000.00, up to $3,200,000.00 ..15% On any amount in excess of $3,200,000.00 .............................. 16% For transfers made from July 1, 1987 through June 30, 1988: On any amount in excess of $250,000.00, up to $300,000.00 ............ 6% On any amount in excess of $300,000.00, up to $500,000.00 ...... 7% On any amount in excess of $500,000.00, up to $700,000.00 ...... 8% On any amount in excess of $700,000.00, up to $900,000.00 ...... 9% On any amount in excess of $900,000.00, up to $1,100,000.00 ... 10% On any amount in excess of $1,100,000.00, up to $1,400,000.00 . 11% On any amount in excess of $1,400,000.00, up to $1,700,000.00 . 12% On any amount in excess of $1,700,000.00, up to $2,200,000.00 ..13% On any amount in excess of $2,200,000.00, up to $2,700,000.00 ..14% On any amount in excess of $2,700,000.00, up to $3,200,000.00 ..15% On any amount in excess of $3,200,000.00 .............................. 16% For transfers made on or after July 1, 1988 there shall be no tax imposed under this subsection. b. (Deleted by amendment.) c. The transfer of property to a brother or sister of a decedent, wife or widow of a son of a decedent, or husband or widower of a daughter of a decedent shall be taxed at the following rates: (1) For transfers through June 30, 1988: On any amount up to $1,100,000.00 ......................................... 11% On any amount in excess of $1,100,000.00, up to $1,400,000.00 ..13% On any amount in excess of $1,400,000.00, up to $1,700,000.00 ..14% On any amount in excess of $1,700,000.00 ..............................16% (2) For transfers made on or after July 1, 1988: On any amount in excess of $25,000.00, up to $1,100,000.00 .... .11% On any amount in excess of $1,100,000.00, up to $1,400,000.00 ..13% On any amount in excess of $1,400,000.00, up to $1,700,000.00 ..14% On any amount in excess of $1,700,000.00 ......................... 16% d. The transfer of property to every other transferee, distributee or beneficiary not hereinbefore classified shall be taxed at the following rates: On any amount up to $700,000.00 ............................................. 15% On any amount in excess of $700,000.00 .................................. 16% For every purpose of this subtitle all persons, including the decedent, shall be deemed to have been born in lawful wedlock and this provision shall apply to the estate of every decedent whether said decedent died before March 25, 1935, or shall die thereafter, but it shall not entitle any person to a refund of any tax paid before the aforementioned date. Amended 1962, c.15, s.1; 1962, c.61, s.1; 1977, c.219, s.1; 1985, c.57, s.1; 2003, c.246, s.37.

N.J. Stat. § 54:34-2.1 Mutually acknowledged relationship of parent and child; stepchildren

The transfer of property passing to any child to whom the decedent for not less than ten years prior to such transfer stood in the mutually acknowledged relation of a parent, provided such relationship began at or before the child's fifteenth birthday and was continuous for ten years thereafter, shall be taxed at the same rates and with the same exemptions as the transfer of property passing to a child of said decedent born in lawful wedlock. The transfer of property passing to a stepchild of a decedent shall be taxed at the same rates and with the same exemptions as the transfer of property passing to a child of said decedent born in lawful wedlock. This section shall apply to the estate of every decedent, whether the said decedent died prior to June second, one thousand nine hundred and thirty-seven, or shall die after said date, but this section shall not entitle any person to a refund of any tax paid prior to said date.

N.J. Stat. § 54:34-3 Ratio tax on transfer of property on nonresident

A tax shall be assessed on the transfer of property made subject to tax as aforesaid in this state of a nonresident decedent if all or any part of the estate of such decedent, wherever situate, shall pass to transferees, distributees or beneficiaries, taxable under chapters 33 to 36 of this title (s. 54:33-1 et seq.), which tax shall bear the same ratio to the entire tax which the said estate would have been subject to under said chapters 33 to 36 if such nonresident decedent had been a resident of this state, and all his property, real and personal, had been located within this state, as such taxable property within this state bears to the entire estate, wherever situated. Nothing in this section shall apply to a specific bequest or devise of property in this state.

N.J. Stat. § 54:34-4 Exemptions.

54:34-4. The following transfers of property shall be exempt from taxation: a. Property passing to or for the use of the State of New Jersey, or to or for the use of a municipal corporation within the State or other political subdivision thereof, for exclusively public purposes. b. Property passing to a beneficiary or beneficiaries having any present or future, vested, contingent or defeasible interest under any trust deed or agreement heretofore or hereafter executed by a resident or nonresident decedent, to the extent that the trust fund results from the proceeds of contracts of insurance heretofore or hereafter in force, insuring the life of such decedent, and paid or payable, at or after the death of such decedent, to the trustee or trustees under such trust deed or agreement. c. Property passing to (i) a trustee or trustees of any trust deed or agreement heretofore or hereafter executed or (ii) to a trustee or trustees of a trust created by the will of a decedent, by virtue of any contract of insurance heretofore or hereafter in force insuring the life of a resident or nonresident decedent and the proceeds of which are paid or payable at or after the death of such decedent to such trustee or trustees for the benefit of a beneficiary or beneficiaries having any present or future, vested, contingent or defeasible interest under such trust deed, agreement or will. d. That part of the estate of any decedent which passes to, for the use of or in trust for any educational institution, church, hospital, orphan asylum, public library or Bible and tract society or to, for the use of or in trust for any institution or organization organized and operated exclusively for religious, charitable, benevolent, scientific, literary or educational purposes, including any institution instructing the blind in the use of dogs as guides, no part of the net earnings of which inures to the benefit of any private stockholder or other individual or corporation; provided, that this exemption shall not extend to transfers of property to such educational institutions and organizations of other states, the District of Columbia, territories and foreign countries which do not grant an equal, and like exemption of transfers of property for the benefit of such institutions and organizations of this State. e. That part of the estate of any decedent who has heretofore died, or may hereafter die, received, either heretofore or hereafter, by the legal representatives of such decedent, whether directly from the United States, or through any intervening estate or estates, by reason of any war risk insurance certificate or policy, either term or converted, or any adjusted service certificate, issued by the United States. Nothing contained in this subsection e. shall entitle any person to a refund of any tax heretofore paid on the transfer of property of the nature aforementioned; and provided further, that the exemption provided for in this subsection e. shall not extend to that part of the estate of any decedent composed of property of the nature aforementioned, when such property was received by the decedent before death. f. The proceeds of any contract of insurance heretofore or hereafter in force insuring the life of a resident or nonresident decedent paid or payable at or after the death of such decedent to any beneficiary or beneficiaries other than the estate or the executor or administrator of such decedent. g. Any transfer, relinquishment, surrender or exercise at any time or times by a resident or nonresident of any right to nominate or change the beneficiary or beneficiaries of any contract of insurance heretofore or hereafter in force insuring the life of such resident or nonresident irrespective of whether such transfer, relinquishment, surrender or exercise of such right took place or whether the proceeds of such policy were paid or payable, before or after the taking effect of this act. h. The value of any pension, annuity, retirement allowance, return of contributions, or benefit payable by the Government of the United States pursuant to the Civil Service Retirement Act to a beneficiary or beneficiaries other than the estate or the executor or administrator of a decedent. i. The value of any annuity payable by the Government of the United States pursuant to the Retired Serviceman's Family Protection Plan or the Survivor Benefit Plan to a beneficiary or beneficiaries other than the estate or the executor or administrator of a decedent. j. The value of any pension, annuity, retirement allowance or return of contributions, regardless of the source, which is a direct result of the decedent's employment under a qualified plan as defined by section 401(a), (b) and (c) or 2039(c) of the Internal Revenue Code, payable to a surviving spouse, or a domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3), and not otherwise exempted pursuant to this section or other law of the State of New Jersey. Amended 1939, c.303; 1941, c.422; 1948, c.268; 1955, c.78; 1962, c.61, s.2; 1967, c.264; 1978, c.38; 1979, c.137; 1981, c.152, s.1; 2003, c.246, s.38.

N.J. Stat. § 54:34-5 Deductions to ascertain market value

Taxes imposed by chapters 33 to 36 of this title (s. 54:33-1 et seq.) shall be computed upon the clear market value of the property transferred. In determining the clear market value of the property the following deductions and no others shall be allowed: Debts of decedent; exception. a. Debts of the decedent owing at the date of death, except that debts of a resident decedent owing for or secured by property outside this state shall not be allowed unless: (1) The property for which the debt is owing or for which it is secured is subject to the tax imposed by said chapters 33 to 36; or, (2) The foreign debt exceeds the value of the property securing it or for which it was contracted, when the excess may be deducted; Funeral and last illness expenses. b. A reasonable sum for funeral expenses and last illness. Administration expenses; fees of executors and attorneys. c. The ordinary expenses of administration, including the ordinary fees allowed executors and administrators and the ordinary fees of their attorneys. Proportion of state, county and local taxes. d. Such proportion of the state, county and municipal taxes upon the property for the current fiscal year as the elapsed portion of the said year bears to the full calendar year. Transfer taxes of other states or United States. e. Transfer taxes paid or payable to other states or territories or the District of Columbia or foreign countries on any property the transfer of which is taxable hereunder, but the amount due or paid the government of the United States as a federal estate tax shall not be considered as an expense of administration and shall not be allowed as a deduction.

N.J. Stat. § 54:34-6 Appointment of appraisers

In order to fix the value of property of persons whose estates are liable to the payment of a tax under this subtitle, whether the same be in the ownership of a resident or nonresident decedent, the state tax commissioner shall, upon application of an interested party, or upon his own motion, appoint a competent person as appraiser as often as and whenever occasion may require.

N.J. Stat. § 54:34-7 Compensation of appraisers

The compensation of an appraiser shall be a sum not exceeding five dollars per day, to be fixed and determined upon by the state tax commissioner and to be paid out of the state treasury. An appraiser shall be reimbursed for all actual expenses incurred in the discharge of his duties.

N.J. Stat. § 54:34-8 Misconduct of appraiser; penalty

If an appraiser takes a fee or reward, either directly or indirectly, from an executor or administrator or any other person liable to pay a tax or any portion thereof, under the provisions of this subtitle, he shall be guilty of a misdemeanor, and, on conviction, he shall be punished by a fine not exceeding one thousand dollars, or by imprisonment not exceeding one year, or both, at the discretion of the court. In addition, the state tax commissioner shall immediately dismiss the appraiser so offending from his employment.

N.J. Stat. § 54:34-9 Making appraisement; notice of; taking evidence; report

An appraiser appointed pursuant to section 54:34-6 of this title shall forthwith give notice, by mail, to such persons as the state tax commissioner shall direct, of the time and place when and where he will appraise the property. He shall at such time and place appraise the same at its fair market value, and for that purpose the appraiser is authorized to issue subpoenas and compel the attendance of witnesses and to take the evidence of such witnesses under oath concerning such property and the value thereof. The appraiser shall make report thereof to the state tax commissioner, together with such other facts in relation thereto as the state tax commissioner may by order require. The report and other data shall be filed in the office of the commissioner.

N.J. Stat. § 54:34-10 Failure to testify before appraiser; penalty

A person failing to attend before an appraiser after service of a subpoena, or refusing to give information concerning an estate, shall be liable to a penalty of two hundred dollars, to be recovered in an action at law by the state tax commissioner.

N.J. Stat. § 54:34-12 Levying the tax; notice to parties interested

From the report and other data filed in his office pursuant to section 54:34-9 of this title the state tax commissioner shall forthwith assess and fix the cash value of the estate and levy the tax to which the same is liable and he shall give immediate notice thereof, by mail, to all parties known by the state tax commissioner to be interested therein.

N.J. Stat. § 54:34-13 Appeal of appraisement, assessment.

54:34-13. a. Any interested person dissatisfied with the appraisement or assessment so made may appeal therefrom to the tax court within 90 days after the making and entering of the assessment, in accordance with the provisions of the State Tax Uniform Procedure Law, R.S.54:48-1 et seq. b. Any aggrieved taxpayer that has neither protested or appealed from an additional assessment of tax may, pursuant to subsection b. of R.S.54:49-14, file a claim for refund of the assessment paid. Amended 1948, c.336, s.1; 1978, c.32, s.2; 1983, c.36, s.38; 1998, c.106, s.8.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026