From the CEO's Desk: Behind the Scenes of the "Mansion Tax"

CHIEF EXECUTIVE OFFICER

Doug Tomson

Over the past few weeks, you’ve probably seen the headlines putting the “mansion tax” back in the spotlight, but this time with a new name: the Graduated Percent Fee. But as is often the case in Trenton, what happened behind the scenes tells a much more complex story.

When the whispers of this tax increase first started circulating earlier this year, it raised immediate concerns for us. We fought relentlessly to blunt the impact the original proposal would have had. While the language used paints this as an affordable housing issue, we know that in so many parts of our state there are everyday sales of the New Jersey middle class that would trigger this tax.

It was bad policy when it was introduced as part of the budget process and it remains bad policy today, fully in effect. We oppose policies that add friction to homeownership and make it harder to buy or sell homes, period.

We launched a robust Call for Action—to members and consumers—with phone calls, emails, digital ads, social media, radio and TV ads, and more. Thousands of you and your clients took action with your legislators explaining the harm this proposal could cause.

Still, we understood the reality of what we were up against and while our members engaged in a months-long Call for Action, we held dozens of meetings with legislators, committee chairs, leadership, and administration. We shared data and anecdotal evidence. We emphasized the real-world implications of a tax like this.

We’re not done. Our government affairs team will continue to monitor how this policy is implemented, and we’ll be there to fight any future efforts to repeal it. We’ll also continue to push for real solutions that improve housing access and affordability without burdening the very people working hardest to make homeownership happen.