- January 12, 2005
- All Issuing Offices in New Jersey
- Update on GIT/REP-3 - Seller's Residency Certification/Exemption and GIT/REP-1 Nonresident Seller's Tax Declaration
We have been receiving calls about the use of the GIT/REP-1 and GIT/REP-3 forms as a result of the GIT/REP-3 being revised in November of this year. The GIT/REP-3 form was changed to add a "Seller Assurance" that the sale will not be recognized for Federal income tax purposes under I.R.C. Section 721, 1031, 1033 or is a cemetery plot as an additional basis for exemption from withholding tax. Also, the instructions for completing the form were changed to add the following language:
"Unless a new residence (permanent place of abode, domicile) has been established in New Jersey and said new residence is listed under seller(s) information, the seller(s) is considered a nonresident. Part-year residents will be considered nonresidents. Nonresident seller(s) will be required to make an estimated Gross Income Tax payment if they do not meet any of the seller(s) assurances."
The Division of Taxation issued three Memoranda in an effort to clarify some of the issues raised by these changes. The Department confirmed that nonresident are required to make an estimated Gross Income Tax payment if they do not meet any of the Seller Assurances as listed in the GIT/REP-3 Form.
Several county clerks have confirmed the following:
- If the seller does not have a New Jersey primary residence after the sale,
but is entitled to check off one of the seven boxes in the "Seller Assurances"
section and obtain an exemption from submitting an income tax payment with
the deed, the GIT/REP-3 form may be submitted with the deed using an out of
- If the seller does not have a New Jersey primary residence after the sale, and is not entitled to an exemption from submitting income tax, the seller must complete Form GIT/REP-1 Nonresident Seller's Tax Declaration and submit the form, with the appropriate tax payment, with the deed for recording.
Please call the state office if you have any questions.
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