New legislation to affect county requirements for recording titles

sussex county-Sussex County Clerk Erma Gormley is attempting to reach attorneys and title companies to explain changes in the requirements for recording titles brought about by recently enacted state legislation. "While the Division of Taxation is taking steps to notify attorneys through the bar association, we're trying to reach out to our local attorneys and title companies and inform them of the necessary changes as well," Gormley said. "We want to eliminate, as much as possible, the need to return documents unrecorded because of new state requirements that go unmet." Gormley is referring to new legislation under Chapters 55 and 66, which deals with gross income tax withholding on real estate sales by nonresidents of New Jersey and with increased realty transfer fees, respectively. Under Chapter 55, deeds dated August 1 or later must now be accompanied by one of three new tax forms issued by the Division of Taxation: either 1) a Non-resident Seller's Tax Declaration form (which requires an accompanying check and immediate tax payment to the State); 2) a Non-resident Seller's Tax Prepayment Receipt (stating income tax already has been paid to the State); or 3) a Seller's Residency Certification/Exemption form, exempting the seller from payment. The tax forms can be downloaded from state.nj.us/treasury/taxation, and questions regarding Chapter 55 can be directed to 609-292-6400. For more information, call 609-292-7974. A revised 2004 fee schedule can be downloaded from sussexcountyclerk.com. A final change occurring requires that an Affidavit of Consideration (RTF-1) be affixed to and recorded with all deeds transferring "new construction." The RTF-1 can be downloaded from state.nj.us/treasury/taxation/lpt/localtax.htm.