WHAT A JOKE

[yankee]

Release Date: Aug 25 2008
Senator Steven Oroho, a member of the Senate Budget and Appropriations Committee issued the following statement after learning that the Ferraro family of Franklin, Sussex County, must pay thousands of dollars in "affordable housing" fees before they can rebuild their home after a tragic fire:

"Only the Trenton Democrats would come up with a scheme for 'affordable' housing that makes it more expensive for a family to rebuild a home after a fire. This is not a redevelopment or a demolition; the Ferraro family is simply trying to rebuild their lives after a fire destroyed their home and killed their dog.

"Apparently, the new regulations permit restoration work on the Ferraro's home to be classified as a demolition, triggering a required affordable housing fee. The new regulations state that, '[D]demolitions are a source of secondary housing demand, as they eliminate housing opportunities for low- and moderate-income households.' (5:93-2.9 Demolitions)

"These new rules have confused and burdened communities throughout the state with absurd requirements and tens of billions of dollars in unfunded mandates. It's no wonder that badly needed economic development projects have been stopped dead in their tracks. Now an anguished family apparently will have to pay the government thousands of dollars to recover from a terrible tragedy. This absurd and cruel practice must be stopped.

"The house wasn't vacant and the house wasn't demolished. The house burned to the ground. This was an act of God. I hope that the intent of the affordable housing law wasn't to punish those who suffered a tragedy. Sadly, these regulations were drafted in such a manner to do exactly that.

"Legislators should immediately overturn these ill-conceived and onerous rules. New Jersey can pass affordable housing laws that actually make housing more affordable, not more expensiv

[Cranbury Conservative]

This story highlights the incompetence of Assembly Speaker Roberts, Senator Lesniak, Governor Corzine, Assemblywomen Greenstein and every other Democrat in power in Trenton that voted blindly along party lines for this unfair legislation.

[Guest]

I agree completely. This is absurd! My heart goes out to this family and hopefully this will be fixed so they do not have to comply with these ridiculous rules.

[Guest]

"Apparently, the new regulations permit restoration work on the Ferraro's home to be classified as a demolition, triggering a required affordable housing fee. The new regulations state that, '[D]demolitions are a source of secondary housing demand, as they eliminate housing opportunities for low- and moderate-income households.' (5:93-2.9 Demolitions)

The key here is that Ferraro's home should NOT be classified as a "demolition." This is obvious.

[but]

Okay, so in that circumstance it's not demolition. What if I want to tear down my home and build one it's place. Look at the beach and how many homes are torn and rebuilt by the same owners. It seems some homes on Evans drive also were rebuilt over the years. Now, on top of the realty transfer tax they have a demo tax for affordable housing?

This makes no sense and needs to be revised. A person should have the right to rebuild and a right to tear down and rebuild without having to incur thousands in fees. It was bad when I sold my home and had to pay 4,500 to the state for the right to sell my home and move to Cranbury.

For a party that apparently is for the working people it seems they are doing anything but supportimg the working people. Either they support the ultra rich or they suppor the ultra poor. Anything in between and they expect us to foot the bill.

[Guest]

[Guest]

NJ has a realty transfer tax. Anytime you sell a home whether you move in state or out of state you have to pay a tax based on the sale price of the home. It came into being under our wonderful Gov. Corzine and unless you sell homes frequently or are in the industry you are not aware.

My home was only 400,000. A home at 800,000 in Cranbury would be around 9,000 in payment to the state.

[WoW]

[Guest]

When was this enacted? I sold a home early last year and didn't have this.

That's a pretty steep tax, over 1%.

[Guest]

You should have paid it at closing. I sold mine last year as well. Here is a calculator and information.

http://www.vested.com/tax_calculator1.html

The exception is Furthermore, if the grantee is exempt from federal income taxation under IRC 501 (c)(3) or meets the requirements of the exempt transactions provided in N.J.S.A. 46:15-10, the transfer is exempt.

[Guest]

I heard the you have to pay NJ tax if you move to other state.

[Guest]

In NJ all sellers regardless of where they move have to pay a realty transfer tax. The only difference is that those who move out of state pay more money.

From
http://www.njlawblog.com/2007/09/articles/residential-real-estate/new-jersey-realty-transfer-fees-due-on-sale-of-residences/

Sales Price Realty Transfer Fee
$500.00 to $350,000.00 $2.00 to $2,105.00
$350,000.00 to $1.0 million $2,105.00 to $9,575.00
$1.0 million to $2.0 million $9,575.00 to $21,675.00
and $6.05 per $500.00 in excess of $2.0 million

A reduced Realty Transfer Fee is available to senior citizens, blind persons, and disabled persons on the sale of one-or two-family residences which they own and occupy, and on the sale of low and moderate income housing.

Those reduced fees are:

Sales Price Realty Transfer Fee
$500.00 to $350,000.00 $.50 to $650.00
$350,000.00 to $1.0 million $650.00 to $4,675.00
$1.0 million to $2.0 million $4,675.00 to $11,475.00
and $3.40 per $500.00 in excess of $2.0 million

FAQ from the state of NJ
http://www.state.nj.us/treasury/taxation/lpt/rtffaqs.htm

If you sold your home and did not pay this tax at closing, I would contact the attorney who did the closing and make sure you met the qualifications for being exempt.

[Guest]

I guess this is one of Corzine's attempts to keep people in NJ - tax the heck out of them if they try to leave!

I was unaware of this tax. I hope that somebody is challenging it.

[Guest]

It's been in place since Corzine took office, started by Cody. The time to challenge has come and passed. The only way to change it is to change Governors at this point.

[Guest]

Transfer taxes are pretty common BTW. Many States have them, and often select counties tack extra onto them, just not usually this high.

[Guest]

just because they're common doesn't make it okay. The fact that the government can skim off the top of every real estate transaction is not okay. That they keep taxing everything is not okay.