Maria purchases a residential property in Montclair, New Jersey for $1,200,000. At closing, she is surprised to learn she owes an additional tax beyond the standard realty transfer fee. What is this additional tax, and who is responsible for paying it?
Correct Answer
D) A 1% mansion tax paid by the buyer on properties over $1,000,000
New Jersey imposes a 1% mansion tax on the buyer for residential properties sold for $1,000,000 or more. This is separate from the Realty Transfer Fee (RTF), which is generally the seller's obligation. Because Maria's purchase price of $1,200,000 exceeds the $1,000,000 threshold, she owes the mansion tax as the buyer.
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