New Jersey § 54a:8-10

§ 54a:8-10.

a. A nonresident taxpayer shall file the estimated tax form with the county recording

officer, along with the payment of any estimated tax due, at the time the deed is

filed with the county recording officer for recording using the procedures prescribed

in such form and accompanying instructions as the director shall prescribe. The nonresident taxpayer shall make that estimated tax payment payable to the Department

of the Treasury for the estimated tax which payment shall be separate from any other

payment required to be made by the seller or transferor pursuant to law. Except for a nonresident taxpayer who meets one of the exemptions provided in subsection

b. of this section, a nonresident taxpayer who is a seller or transferor of real property

within this State shall file the estimated tax form, whether or not they have a gain

on the sale or transfer. b. The requirements of this section shall not apply if: (1) the real property being sold or transferred is used exclusively as the principal

residence of the seller or transferor within the meaning of section 121 of the federal Internal Revenue Code of 1986 , 26 U.S.C. s.121 ; (2) the seller or transferor is a mortgagor conveying the mortgaged property to a

mortgagee in foreclosure or in a transfer in lieu of foreclosure with no additional

consideration; or (3) the seller or transferor, or transferee is an agency or authority of the United

States of America, an agency or authority of the State of New Jersey, the Federal

National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Government

National Mortgage Association, or a private mortgage insurance company. c. The principal residence exemption set forth in paragraph (1) of subsection b. of

this section, shall apply only if the property sold or transferred was used exclusively

as the principal residence of the seller or transferor. If the real property sold or transferred includes both the principal residence and

other real property, the taxpayer shall file and pay the estimated tax due based upon

the gain on the other real property. d. A county recording officer shall not record or accept for recording any deed for

the sale or transfer of real property subject to P.L.2004, c. 55 ( C.54A:8-8 et seq. ), unless accompanied by a form prescribed by the director pursuant to subsection

a. of this section and the payment of any estimated tax shown as payable on such form,

or unless such form includes a certification by the seller or transferor on the deed

who is an individual, estate or trust that this section is not applicable to the sale

or transfer. The method for the certification under this subsection shall be set forth in forms

and instructions as shall be prescribed by the director. e. A county recording officer shall act as an agent of the director for purposes of

collecting the estimated gross income tax, if any, shown to be payable upon the form

prescribed pursuant to subsection a. of this section. The director, by regulation, shall prescribe one or more methods for the county

recording officer's collection of such estimated tax. Every county recording officer shall account for and remit to the county treasurer

any funds collected and any returns filed with such county recording officer and the

county treasurer shall remit those returns and those funds, net of administrative

costs, to the director on such days as the director shall set by regulation consistent

with the administration of the provisions of P.L.1968, c. 49(C.46:15-5 et seq.) as

amended and supplemented. Every county recording officer also shall follow such procedures and keep such records

in respect to the implementation of this section as the director may prescribe. f. A county recording officer shall not be liable under this section for any inaccuracy

in any statement on the form prescribed pursuant to subsection a. of this section

or in the amount of estimated gross income tax a county recording officer shall collect

under this section so long as the county recording officer shall collect the estimated

gross income tax shown as payable on such form. g. If a deed is recorded notwithstanding an omission or inaccuracy in the form prescribed

pursuant to subsection a. of this section or in any certification by the transferor

on such form or a deficiency in the payment of estimated gross income tax required

by this section, the recording of such deed shall not be invalidated by reason of

such omission, inaccuracy, erroneous certification or deficiency nor shall the title

founded on such deed be impaired thereby. h. If there has been an overpayment of tax required to be paid through the estimated

tax payments made with the filing of the deed, the overpayment of tax may be refunded

prior to the filing of a gross income tax return under such requirements and in a

manner as the director shall prescribe, but no interest shall be allowed or paid on

such overpayment.