New Jersey Administrative Code
Title 18 - TREASURY - TAXATION
Chapter 16A - CONTROLLING INTEREST TRANSFER TAX
Subchapter 1 - CONTROLLING INTEREST TRANSFER TAX
Section 18:16A-1.2 - Calculation of the tax

1. The first method is used if consideration in excess of $ 1,000,000 is paid for controlling interest in an entity, and the entity possessing, directly or indirectly, the controlling interest in classified real property owns only the classified real property. In this case the tax is calculated by multiplying the consideration paid by one percent.

2. The second method is used if a controlling interest in an entity is sold or transferred and the entity possesses, directly or indirectly, a controlling interest in classified real property and also an interest in other property, real or personal. In this second method, the equalized assessed value of the classified property, not the amount of consideration paid for the controlling interest itself, is used in the calculation of tax. In this situation, the tax is paid only if the equalized assessed value of the classified real property exceeds $ 1,000,000. The tax is calculated by multiplying the equalized assessed value of the classified real property by one percent times the ownership percentage transferred. Thus, the tax is measured by the portion of the equalized assessed value that is proportional to the percentage of the total interest in the property transferred.