SENATE, No. 704
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 15, 1996
By Senator CAFIERO
An Act concerning transfer inheritance taxes on transfers to descendents of brothers and sisters of decedent, amending R.S.54:34-2.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:34-2 is amended to read as follows:
54:34-2. a. (1) The transfer of property to a husband or wife 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, issue of 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.
(cf: P.L.1985, c.57, s.1)
2. This act shall take effect on January 1 next following enactment and apply to transfers made on or after that date.
STATEMENT
This bill amends the New Jersey transfer inheritance tax to treat decedent transfers to nieces and nephews of the decedent identically to transfers to the brothers and sisters of a decedent.
The transfer inheritance tax is imposed on transfers of the property of decedents. In the 1980's, transfers to the spouse, children and parents of a decedent were completely exempted from taxation. Transfers to close relatives of the decedent, including the decedent's brothers and sisters, were provided an exemption on the first $25,000 transferred and the remainder transferred was taxed at lower rates.
This bill adds the decedent's nieces and nephews, and their children, to the category of transferees who are exempt from tax on the first
$25,000 transferred and who are taxed on the remainder at lower rates.
Includes descendants of brothers and sisters as Class C beneficiaries under transfer inheritance tax.