NJ Tax Court Deems Farmland Transfer Subject to ‘Mansion Tax’

A farmland owner was denied a 1% transfer fee refund based on the $4.7 million purchase of a deed by the New Jersey Tax Court on Tuesday.

State law requires the transfer of farm property must be charged the 1% fee if the transaction cost more than $1 million and if there’s a building intended for residential dwelling, Judge Joan Bedrin Murray said. The structure on the parcel was meant for residential dwelling at the time the transfer was completed—it doesn’t matter if the purchaser planned to demolish the building, the opinion said.

• The court based its decision on the ...