New Jersey § 54a:6-9

§ 54a:6-9.

a. Notwithstanding the provisions of any law to the contrary, a taxpayer who elects

to apply the provisions of paragraph (2) or (4) of subsection (d) of section 312 of

the federal “Taxpayer Relief Act of 1997” ( Pub. L.105-34 ), for federal income tax purposes shall be subject to the same provisions for New

Jersey gross income tax purposes. b. Notwithstanding the provision of any law to the contrary, the exclusion of gain

realized from the sale or exchange of property by a taxpayer that has been owned and

used by the taxpayer as the taxpayer's principal residence shall be excludable from

the gross income of the taxpayer, upon the election of the taxpayer made pursuant

to paragraph (3) of subsection (d) of section 312 of the federal “Taxpayer Relief

Act of 1997” ( Pub. L.105-34 ), for federal income tax purposes, and shall be determined pursuant to the proration

method allowed pursuant to subsection d. of section 1 of P.L.1998, c. 3 ( C.54A:6-9.1 ), notwithstanding that the sale or exchange is not by reason of a change in place

of employment, health, or unforeseen circumstances, and notwithstanding that the taxpayer

does not meet the use and ownership requirement for periods aggregating two years,

if the sale or exchange takes place during the two-year period beginning on August

5, 1997 and the taxpayer held the property on August 5, 1997.