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Revised Realty Transfer Tax Forms - Effective August 1st

by Gary M. Ham, Land America / Lawyers Title, Published 7/26/2006

In order to implement the new Commercial Mansion Tax law, the Division of Taxation has amended the RTF-1 (Sellers Affidavit of Consideration) and the RTF-1EE (Buyers Affidavit of Consideration). The Division has also created a new form; the RTF-4 (Protest of Fee Assessment). Deeds submitted for recording on or after August 1st must be in compliance. 

Each of the new forms are available for download using the links below under 'File Attachments.'

We recommend checking the NJ Division of Taxation's Website for the latest tax forms.

We are providing the above referenced forms as attachments to this Bulletin with several caveats. First, there is a good probability that the forms may be amended by the Division in the coming days in order to correct what the title industry perceives to be inconsistencies and/or unclear provisions between the forms and the law. Second, the Division of Taxation’s position regarding when and what forms must be filed on certain transactions may also be amended in the coming days or weeks. Therefore, the information contained in this Bulletin reflects our best interpretation of the Division’s position as it exists today.

The Division of Taxation is presently requiring that the RTF-1 be filed by the seller in all transfers of class 4 property (4A, 4B & 4C), even if the consideration does not exceed 1 million dollars. Please remember that payment of the Commercial Mansion Tax only applies to transfers of class 4A property in excess of $1 million. However the Division is requiring the RTF-1 to be annexed to the deed on any class 4 transfers, not just class 4A transfers in excess of $1 million.

Similarly, the Division is also presently requiring that the RTF-1EE be filed on transfers of all class 4 properties not just the mansion taxable class 4A transfers. Additionally, because of some ambiguity in the law and the Division’s current position we recommend that the RTF-1EE be annexed to all the deeds no matter what the consideration is, and no matter what class of property is being transferred.

The RTF-4 is to be used when the buyer is claiming an exemption from the Commercial Mansion Tax fee because of a corporate merger or acquisition.

Please note that all RTF forms filed with the County Clerk must be filed in duplicate.

Update 8/2/2006 - Updated versions of the forms are now available via the links below. The forms are also now "fill-in," so they can be edited in Acrobat Reader before printing.

Update 8/17/2006 - The State has informed us revisions of the RTF-1 and RTF-1EE may be ongoing for the next few weeks. The latest versions will contain a month, date, and year of the revisions. We will make every attempt to provide the most current forms, but you can also check the Taxation Division's website.