On June 30, 2025, Governor Murphy signed Bill S4666 / A5804 into law, making the seller the responsible party for paying the “Mansion Tax” (N.J.S.A. 46:15-7.2 et seq.), as well as substantially increasing the rates on transfers for more than $2,000,000.00. These changes were effective as of July 10, 2025.

     Rather than being imposed on the buyer, the “Mansion Tax” is now imposed on the seller, in addition to the Realty Transfer Fee (N.J.S.A. 46:15-5 et seq.). Although no regulatory guidance or tax forms are yet available, N.J.S.A. 46:15-7.2 now provides the following fee structure for the “Mansion Tax,” which consists of five potential rates, depending on the total amount of consideration stated in the deed:
 

• Consideration of $1,000,000.00 to $2,000,000.00: 1% of the entire consideration
• Consideration of $2,000,000.01 to $2,500,000.00: 2% of the entire consideration
• Consideration of $2,500,000.01 to $3,000,000.00: 2.5% of the entire consideration
• Consideration of $3,000,000.01 to $3,500,000.00: 3% of the entire consideration
• Considerations above $3,500,000.00: 3.5% of the entire consideration

     As before, the “Mansion Tax” applies to a transfer of real property that has been classified by the municipal tax assessor as Class 2 (1-4 family house), 3A (if the farmland contains a residential dwelling), 4A (commercial), or 4C (a cooperative unit). Conveyances for less than $1,000,000.00 remain exempt from the “Mansion Tax.”

As always, the attorneys at Winne, Banta, Basralian & Kahn are here to serve you.

If you have specific questions pertaining to the information above, please contact one of the attorneys in our Real Estate, Land Use, Planning & Zoning and Environmental Law Department listed below.

Co-Chairs:                                                                                  

Joseph L. Basralian jbasralian@winnebanta.com                      

Richard R. Kahn rkahn@winnebanta.com                                                                                                           

Partners:   

Thomas J. Cangialosi, Jr. tcangialosi@winnebanta.com

Robert M. Jacobs rjacobs@winnebanta.com                             

Ian S. Kleeblatt ikleeblatt@winnebanta.com                              

Gary S. Redish gredish@winnebanta.com                                 

Bruce R. Rosenberg brosenberg@winnebanta.com

Michael G. Stingone mstingone@winnebanta.com

Richard D. Wolloch rwolloch@winnebanta.com

Associates:

Amanda Gaul agaul@winnebanta.com

Aaron Joseph ajoseph@winnebanta.com

Marla Wolfe Taus mtaus@winnebanta.com

Ivette Vargas ivargas@winnebanta.com

Of Counsel:

Robert J. Kleeblatt rkleeblatt@winnebanta.com

Alice B. Newman anewman@winnebanta.com

On January 16, 2024, Governor Murphy signed legislation (S-4265/A-5912) into law. This law will boost the number of available liquor licenses and ease a range of restrictions that have hindered breweries and distilleries throughout the State. The following is a summary of the changes that come with the new law.

Inactive/Pocket Licenses

There are currently more than 1,300 inactive or pocket licenses held throughout the state. Inactive licenses are associated with a specific location but are not in use. Pocket licenses are those that have been purchased but are not currently attached to any specific location. The inactive and pocket licenses are one of the leading causes of the low supply of available licenses, as well as the high price of the licenses. The Division of Alcoholic Beverage Control estimates a 15% increase in available licenses with the implementation of the new law.

Under the new law, if a license has remained inactive for two consecutive license terms (a total of two years) the license holder will be obligated to either sell it or use it. If the license holder does not exercise either option, the license may be transferred to neighboring municipalities. Additionally, a municipality where an inactive consumption license has lapsed and has not been renewed for eight years before the law takes effect, may issue a new consumption license at a public sale for use at a licensed premises located within the town.

Mall Licenses

The new law creates a new class of retail consumption licenses which the Governor hopes can create many new licenses throughout the State. The law allows municipalities to issue up to two new licenses for food and beverage establishments in shopping malls with a minimum of 750,000 square feet; and up to four new licenses for establishments in shopping malls with a minimum of 1.5 million square feet. 

With the large number of malls in the state, and the struggles malls have seen since the pandemic and the rise of online shopping, this law can bolster the survival of malls throughout the state.

Breweries and Other Similar Establishments

The new law eases restrictions that have hindered breweries and other similar businesses disturbing their ability to compete against industries in neighboring states. It takes away the requirement to provide tours of the premises to patrons and allows them to hire servers and wait staff. The law will also allow them to sell certain food items (i.e. chips, nuts, and packaged snacks) and non-alcoholic beverages. Additionally, the law allows them to collaborate with outside vendors, host unlimited onsite event and private parties, host a maximum of 25 off-site special events, and participate in up to 25 events hosted by a holder of a special affairs permit. The law also increases the number barrels permitted to be manufactured per year from 100,000 to 300,000 and allows the license holders to sell and distribute 50% of the beer produced on premises each year directly to retailers, rather than having to sell solely to wholesalers. Finally, the law creates a new farm-brewery license that allows the holders to produce malt alcoholic beverages, up to 2,500 barrels per year, for retail sale to consumers for consumption off the licensed premises.

The new law will give these establishments more opportunities, will allow them to compete against businesses in neighboring states with laxer laws and will allow them to thrive in the industry.

Registration for the Succession or Sale: Generational Considerations for Closely Held Companies (Or “No Need to Be a Logan Roy”) Event on Wednesday 11/01/23

Registration for the Building Bergen – Manufacturing & Industrial Real Estate Today Event on Wednesday 4/26/23

Registration for the Building Bergen – Meet the Mayors Event

On Thursday, June 2nd from 8:00(AM) to 10:30(AM) Building Bergen will be having panelists of community leaders and business executives discuss what has happened in Bergen County over the past two years, where things stand today and what we can look forward to in the near future. You won’t want to miss this!

Register for the event here