On July 8, 2006 NJ Governor Corzine signed into law 14 bills related to the 2007 fiscal year.  Appropriations Act L. 2006, A4706, effective 07/08/2006,  adds a 4% surcharge on corporation business tax for years ending in fiscal 2007, 2008 and 2009, and increases minimum tax under the corporation business tax.  The law also added a 1% tax on the purchase of commercial property valued at more than $1M.  L. 2006, A4701, effective 08/01/2006. The tax is 1% on the total value, not just the value in excess of $1M. C.46:15-7.2 8.a.(b) The tax also applies to a “…transfer for consideration in excess of $1,000,000 of a controlling interest in an entity which possesses…a controlling interest in classified real property…” C.54:15C-1 3.a.(1).  What if you sell the same $5M warehouse to a family trust in exchange for an installment note?  This is a common estate planning technique referred to as a note sale to an intentionally defective grantor trust (“IDIGIT”).  Might this common estate planning transaction now be subjected to a 1% tax? Under the new laws, it might be.