Governor Christie Signs Bulk Sales Legislation into Law
On September 14, 2011, Governor Chris Christie signed into law A-2748, the bulk sales legislation initiated and strongly supported by NJAR®. This law, which took effect immediately upon being signed, exempts individuals, estates and trusts involved in purchasing one- and two-family residential and certain seasonal rental properties from bulk sales notification requirements. Please note that LLC’s involved in real estate transactions pertaining to one- and two-family residential and seasonal rental properties are still subject to bulk sales requirements.
In addition, the law is retroactive to August 1, 2007, meaning that any transactions taking place between that date and September 14, 2011 were in essence, never subject to bulk sales requirements.
This new law, which was approved unanimously by both houses of the state Legislature, immediately protects one- and two-family residential real estate transactions from being unnecessarily delayed by the bulk sales notification requirements imposed by the New Jersey Division of Taxation. In many cases, the previous requirements led to unnecessary closing delays or sellers being asked to place potentially thousands of dollars in escrow until the Division of Taxation cleared a property sale to proceed.
The NJAR® Contract of Sale (Form #118, dated 9/11) has been updated at www.njarforms.com to reflect the new law. The Zipform and hard copy versions will be available shortly. Please note that the Division of Taxation’s bulk sales notification form and NJAR® bulk sales addendum no longer need to be submitted by those purchasing these types of residential properties in New Jersey.
If a previous owner of a one- or two-family home or seasonal rental property owed state taxes on revenue earned from the property (i.e. if the seller ever rented the property), the purchaser will not be considered liable for any taxes owed by the seller. NJAR® sought this provision in the legislation and was successful in its inclusion and implementation.
For additional information on A-2748 and the bulk sales requirements previously in place on one- and two-family homes and seasonal rental properties, visit NJAR®’s bulk sales webpage, or the NJAR® Government Affairs Facebook page. If you have any questions on this issue, contact the NJAR® Government Affairs Department at (732) 494-5616.
This past December, the New Jersey Division of Taxation posted expanded Frequently Asked Questions and responses regarding the Bulk Sales Act, NJSA 54:50-38. Given the breadth of the Act, which was expanded a couple of years ago to cover transactions in which any seller makes a bulk sale, not just sellers who collect and remit sales tax, a review of these new FAQs is advisable.
For a detailed analysis of the Act, see the article in the New Jersey Law Journal authored by Peter Ulrich and Russell Bershad, “Broad View of the Expansion of the Tax Bulk Sales Notification Requirements.”
When in Doubt, File
The expanded FAQs and responses don’t carry the weight of law, they are interesting and in some cases surprising. They reflect the position that the Division will be taking on many bulk sales issues. The message running throughout is clear: when in doubt, file.
Indeed, that’s precisely the response to Question 22:
22. Q: Suppose the purchaser is unsure if the bulk sale statute applies to her transaction? What should she do?
A: When in doubt, file a completed bulk sale C-9600 form notice in a timely manner. This does not automatically mean that the Division will treat the transfer as falling within the bulk sale law, but it guarantees that the purchaser will not incur any tax liability of the seller for failure to comply with the notice provisions of the law.
57. Q: Is the conveyance of a single family home that has been used solely as a primary residence lived in by the seller, subject to the bulk sale statute?
A: No. A single family home used as a primary residence, not used for business, including rental income purposes, is not considered a business asset
As a Full time Realtor I am coming across this situation now more often than before.
So now part of my presentation to sellers includes questions (answers from bulk sales act) such as:
1> Have you EVER rented your property? even for as a seasonal rental?
"47. Q.Does the bulk sale law apply to the sale of the residential property if it is only being rented for a short period of time (e.g. three months) or all or most of the property is owner occupied with only a smaller part being rented?"
A. Generally, the bulk sale law, N.J.S.A. 54:50-38, applies to transactions “Whenever a person shall make a sale, transfer, or assignment in bulk of any part or the whole of the person's business assets, otherwise than in the ordinary course of business…” The law does not limit applicability to where only a part of realty is being used as a business asset. Also, even property rented to family members or friends are considered business assets. Accordingly, sales of such property fall under the coverage of the bulk sales law.
If in doubt, the buyer should always file aC-9600 form notice with the Division in a timely manner to ensure protection against liability for the seller’s tax debts.
Example: An individual owns a single family dwelling which she rents out, making her a landlord. Since the landlord is in business to collect rents, the selling of the dwelling constitutes a bulk sale. Even if the property was a multifamily dwelling and the owner resided in one of the units, the transfer of the property will still be considered a bulk sale because the other unit or units was/were rented and it is not in the owner’s ordinary course of business to sell rental properties.
2> Have you EVER claimed a part of your home as an office?
"A. If the homeowner is expensing the portion of the home on her tax return as a home office and receiving a tax benefit from operating a business out of the home, sale of the home must be reported by timely filing the C-9600 form."
49. Q. Suppose the Buyer doesn't know that the house was used for rental purposes (e.g. the seller inadvertently or intentionally doesn't disclose this fact)? Unknown to the buyer, the seller resided in the one-family house as his principal residence most of the year but would rent it out when he went on long vacations out of state which he did not disclose.
The BUYER doesn't provide the C-9600. Is the Buyer liable for the seller's tax liabilities? Would it make any difference if the seller provides an affidavit to the purchaser or put in the sales contract that the house had not been used for any rental or other business?
A. The Division cannot control what the seller does or does not tell the purchaser. Either way, if the purchaser does not file the notice, the purchaser is still liable for any State tax liabilities of the seller. If the seller omits to tell purchaser of the income producing nature of the property, then the purchaser can take legal action against the seller for any seller’s state tax liabilities that the Division seeks to assess against the purchaser. Obviously, the seller can provide the purchaser with whatever affidavit it wants to. However, the Division is not bound by any such affidavit in determining liability for failure to file the C-9600 notice. Again, if the affidavit is misleading or in some other way incorrectly states that the property is not income producing, the purchaser’s recourse for failure to file the C-9600 notice is to take legal action against the seller for any seller’s state tax liabilities that the Division seeks to assess against the purchaser.
Also in New Jersey we are now dealing more and more with sellers moving out of the state. So when selling your home be prepared to have 2% of your proceeds set aside in escrow for the state taxes to be paid.
Conducting real estate transactions are getting more complex daily so it is in your best interest to hire a seasoned real estate professional who has your interests at heart and can guide you through the maze of paperwork and trending legalities.
Above all always consult with your accountant and other legal proffessionals.
Asbury Blues Festival
Sat. Sept 17
11:00 - 8:00 PM
Mattison Ave., Asbury Park, NJ
SATURDAY & SUNDAY, SEPT. 10-11: 8th ANNUAL SKIMBASH CONTEST
The SkimBash, held in Sea Bright, New Jersey, is the premier Pro/Am skimboarding contest on the Jersey Shore. Skimboarders of all ages, from beginners to professionals, gather for this annual action-packed 2-day event to show off their skills, and compete for prizes and cash. Please visit http://www.skimbash.com/ for complete details.
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SATURDAY, SEPT. 10: PBA LUAU ON THE BEACH
The 7th Annual PBA Luau takes place Saturday, Sept. 10, 2011 from 6-10 p.m., hosted by Sandy Hook P.B.A. Local #48 (Sea Bright and Highlands police departments) on the beach at the Merri Makers at Waters Edge, 1465 Ocean Avenue, Sea Bright. This year�s event raises money to benefit charities associated with infant loss, such as Riverview�s Share Program, Now I Lay Me Down To Sleep, and Tears Foundation.
Enjoy food, drinks, live music and a gift auction. Donations: Adults - $60; Ages 12-20 - $25; under 11 free. Includes food, libations, and soda. For more information call 732-872-1158.
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SUNDAY, SEPT. 11: REMEMBERING 9/11
Community memorial service will be held Sunday, September 11, 2011 at 12:00 noon at the Sea Bright Fire House. Recollections with Hope is a time to come together as a community to reflect and remember on this special 10-year anniversary of 9-11. For more info., please contact Pastor Michael Turner of the Sea Bright United Methodist Church at (732) 530-7003.
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SEPT. 9 - 22: KIDS BASKETBALL CLINIC
Kids fall basketball clinic is held every Friday from 4-5 p.m., ages 7-12. For more information, please email [email protected] or call 732-842-0099.
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SATURDAY, OCT. 1: TASTE OF SEA BRIGHT (TROLLEY HOP)
$40 ~ ALL INCLUSIVE: Hop to 17 stops for delicious samplings of food and cocktails, door prize drawings, and give-aways! * Only 1000 tickets will be sold. This event sells out fast. For more information, please go to: www.VisitSeaBright.com
DHSS Opens Call Center for Public Health Concerns in Aftermath of Hurricane Irene, Flooding, Power Outages
In response to general health concerns in the aftermath of Hurricane Irene, the Department of Health and Senior Services opened a toll-free Public Health Call Center to provide callers with information about prevention and treatment of mold, disposal of spoiled food due to power outages and water concerns.
"We have opened this hotline for the public because we recognize that this event is not over and many New Jerseyans are still working to clean up their homes and businesses in the aftermath of flooding," said Health and Senior Services Commissioner Mary O'Dowd.
To reach health experts in the Public Health Information Call Center, the toll free number is: 1-866-234-0964.
The call center will be open from 8 am to 8 pm Monday through Friday and during the weekend and Labor Day Monday from 10 am to 5 pm.
The call center is being staffed by health experts from the Department's Division of Epidemiology, Environmental and Occupational Health who can answer questions about prevention/treatment of mold growth in flooded homes and businesses, disposal of food spoiled as a result of power outages and concerns about water that needs to be treated to make it safe for drinking and other uses.
Additional information about hurricane and flood recovery is available at www.state.nj.us/health/er/natural.shtml.In response to general health concerns in the aftermath of Hurricane Irene, the Department of Health and Senior Services opened a toll-free Public Health Call Center to provide callers with information about prevention and treatment of mold, disposal of spoiled food due to power outages and water concerns.
"We have opened this hotline for the public because we recognize that this event is not over and many New Jerseyans are still working to clean up their homes and businesses in the aftermath of flooding," said Health and Senior Services Commissioner Mary O'Dowd.
To reach health experts in the Public Health Information Call Center, the toll free number is: 1-866-234-0964.
The call center will be open from 8 am to 8 pm Monday through Friday and during the weekend and Labor Day Monday from 10 am to 5 pm.
The call center is being staffed by health experts from the Department's Division of Epidemiology, Environmental and Occupational Health who can answer questions about prevention/treatment of mold growth in flooded homes and businesses, disposal of food spoiled as a result of power outages and concerns about water that needs to be treated to make it safe for drinking and other uses.
Additional information about hurricane and flood recovery is available at www.state.nj.us/health/er/natural.shtml.
September 7 - Want to learn how to play chess? Just looking to find someone to play chess with? head over to Barnes and Noble at the the Monmouth Mall, Eatontown. The games begin at 6 pm at the Cafe. Ask for Rich or join us on Facebook http://www.facebook.com/bnchessclub
September 9 -Boardwalk Bed Race, Boardwalk, Seaside Heights, Friday @ 6:00 pm, Admission: Free for Spectators, 800-732-7467 [email protected] A fun filled Friday Nights with a bed race competition among our local businesses. The race begins at 6:00 pm Free for spectators Franklin Avenue Stage
September 9 - Shamrock Fest, Boardwalk, Seaside Heights, 10:00am- 6:00 pm, Admission: Free
September 9 - GENERATIONS : ONE-ACT WONDERS, 4860 Route 9 South, Howell, Fris. & Sats. @ 8 PM Sun. @ 3 PM, Admission: $15 General Admission $12 Seniors / Students, One-act plays by local playwrights Michael Glenn Miller, Jennifer Marvel, Paige Stevenson, Annette Curran and Jade Greene. WHERE: The Grange Playhouse WHEN: Fridays and Saturdays September 9, 10, 16, 17, 23, 24 Sunday September 18
September 10 - Ocean Grove GIANT FALL FLEA MARKET, Ocean Pathway, 9am-4pm
September 11 - Vintage Automobile 33rd Annual Car Show, Bay Boulevard, Seaside Heights, 9am-5pm. Admission: Free Sunday from 9am to 5 pm on Bay Boulevard. Sponsored by the Vintage Automobile Club of Ocean County.
September 11 - Great Atlantic Ocean Triathlon, North end of the Boardwalk & Hiering Ave Beach, Seaside Heights, 6:50 am Admission: Registration Fee 732-241-4555 Race starts at 6:50 am located North end of the Boardwalk and Hiering Ave Beach Area. Triathlon including .5 mile swim, Bike 14 miles and run 4 miles . Event is held rain or shine, Registration Fee. Visit www.jsmultisport.com for more information
September 11 - Seafood in Seaside, Grant Avenue, Seaside Heights 10am-7pm, Admission: Free. Fast becoming one of the premiere fall events packed with entertainment, mouth-watering seafood specialties from local restaurants along with musical entertainment, artists and crafters and a flea market on Grant Ave.
September 13 - Women Flying into History "the Women Airforce Service Pilot" (W.A.S.P.) Old Oakhurst School Auditorium, 163 Monmouth Road, Oakhurst, Times: 7:15 pm to 9:15pm Admission: Donations Accepted Contact: Brenda Wityk 732-531-2136 [email protected] Township of Ocean Historical Museum - World War II needed pilots. 1830 women answered the call to become the Women Airforce Service Pilots (WASP). 1074 earned their wings and flew every plane the U.S. made. They fought to be recognized for their contributions to our country and aviation history. Bee Falk Haydu was one of these courageous women. You won't want to miss meeting her and hearing her first hand stories. Copies of her book, "Letters Home" Women Airforce Service Pilots", will be available for purchase. Also see her website at http://wasplettershome.net
September 16 - Lawrence of Arabia (1962, directed by David Lean, 216 minutes), 900 Lakewood Ave, Lakewood, 6:00 PM Admission: FREE; space is limited, reservations required.Starring Peter O'Toole, Alec Guinness, and Anthony Quinn, this film relates the saga of the Arab Revolt, with British support, against the Ottoman Empire during World War I. T. E. Lawrence, a British army officer, organizes a guerrilla army and for two years leads the Arabs in harassing the Turks with desert raids, train-wrecking, and camel attacks. Eventually, he leads his army northward and helps a British general destroy the power of the empire. The film won seven Academy Awards, including Best Picture and Best Director.
September 17 &18 - 30th Annual Clownfest, Boardwalk, Seaside Heights, 12 noon-4pm. Admission: Free, 800-732-7467 [email protected] Its the 30th anniversary of a weekend full of slapstick comedy; vivacious shows and colorful clown creations parading down the boardwalk. With a clown parade Sunday at 2pm.
September 21 - Want to learn how to play chess? Just looking to find someone to play chess with? head over to Barnes and Noble at the the Monmouth Mall, Eatontown. The games begin at 6 pm at the Cafe. Ask for Rich or join us on Facebook http://www.facebook.com/bnchessclub
September 22 - NJ State Hog Rally, Boardwalk, Boulevard, Seaside Heights, A vendor alley on Friday, Saturday and Sunday. Fireworks displayed Friday evening and a motorcycle parade on the Boardwalk on Saturday. For more information visit : www.njstatehogrally.com
September 23 - 3rd Annual "Que By the Sea" BBQ Festival & Competition, Grant Avenue, Seaside Heights, 5:00 pm - 10:00 pm Admission: Free to spectate. A new BBQ lover's weekend packed with entertainment, mouth watering specialties along with musical entertainment, artists and crafters, and our 3rd annual Seaside Heights BBQ Competition on Grant Avenue
September 25 - Red Bank Guinness Oyster Festival, 40 White Street, Red Bank, 12-7pm Admission: $5.00 for anyone over 13. The Red Bank River Center is proud to announce the 2nd Annual Guinness Oyster Festival! This Street Festival anticipates a great time had by one and all and is fashioned after the 57 year old Galway Oyster Festival which celebrates the opening of the Oyster season. It will be a huge food and music festival which will showcase Red Bank's excellent restaurants as well as entertain thousands with great, live music! It will also be a family friendly event with lots of activities for the kids. Talented musicians will be performing on two separate stages with a mix of Irish music, blues and rock and roll. The event will also be a culinary feast! There will be tons of Guinness and fresh oysters plus Red Bank's favorite restaurants will be serving a variety of specialty menu items. Wine and lighter beers will also be available for purchase. The Guinness Oyster Festival is a fundraiser for the Booker Cancer Center at Riverview, the Cancer Institute of NJ and the Red Bank RiverCenter.
Events that are still planned:
September 9 and 10: Irish Festival in Seaside Heights
September 11: Seafood in Seaside Festival in Seaside Heights
September 9-11 (Amateur event)
Sep. 14-18 (Pro event): Belmar Pro Surfing Competition at 16th Avenue Beach
September 10: Streetfair in Red Bank
September 10: Ocean Grove Giant Flea Markets at Ocean Pathway
September 17: Roller Derby at Asbury Park Convention Hall
September 23-25: Que by the Sea BBQ Competition & Festival
September 24: Beer on the Pier at Belmar Marina
September 24: Championship Night at New Egypt Speedway
September 25: Red Bank Guinness Oyster Festival
September 30 - October 3: All Tomorrow's Parties Festival, Curated by Portishead, at The Paramount Theatre and Convention Hall
STATE'S LARGEST WINE FESTIVAL
SET FOR SEPT. 3 & 4 AT ALLAIRE STATE PARK
New Jersey's largest wine festival, Jazz It Up, will be held Saturday and Sunday Sept. 3 and 4, from noon to 5 p.m. at Allaire State Park in Farmingdale, featuring the opportunity to taste nearly 300 different, locally-produced wines, listen to great, live jazz entertainment including Around the Horn on Saturday and The Keith Marks Quintet on Sunday and to explore the grounds of Allaire State Park, home to an early 19th Century industrial iron producing community.
Around the Horn, will be performing on Saturday. This quartet collectively combines smooth classic jazz with playful improvisation to create a very eclectic and vibrant sound featuring all styles of jazz and cross-over rock. Keith Marks has been leading his quartet in a variety of performances at major festivals, colleges and universities, clubs and corporate events for over 30 years.
With the music comes the wine and the opportunity to sample the products of 25 New Jersey wineries including scores of award-winning vintages.
Festival attendees also have the opportunity to step back in time and experience life in a 19th Century bog iron producing community. Craftsmen in period garb; such as blacksmiths, carpenters, leatherworkers, molders and tinsmiths; will be demonstrating their skills for visitors while explaining how their roles affected life at the iron works. Younger visitors to the historic village can learn what life was like for the children of the iron works company by becoming apprentices to the master craftsmen.
Costumed interpreters throughout the Historic Village's homes offer visitors demonstrations in various aspects of 19th Century domestic life, such as hearth cooking, spinning, quilting and sewing, laundry, gardening and even proper etiquette.
Persons interested in learning more about the festival can call The Garden State Wine Growers Association at 609-588-0085 or go the association website at www.newjerseywines.com. Tickets for the festival are $25 a person at the gate. Advance discount tickets can be purchased only at the association web site. Large groups and bus
groups can call the Association "Wine Line" for more information.