NJ S1516

Imposes a 50% tax on the fair market value of residential properties (1-4 units) acquired by investment entities managing pooled investor funds in New Jersey.

Defines "hedge fund taxpayer" as entities with $50 million or more in pooled assets under management; these face stricter ownership limits than other investment entities.

Phases out maximum permissible residential units over 10 years, reducing by 10% annually from the baseline count; hedge fund taxpayers must reach zero units, while other investment entities may retain up to 50 properties.

Exempts acquisitions where ownership is less than 50% of property value, properties obtained through foreclosure that remain unoccupied, primary residences of entity owners, and properties funded with federal or public sources.

Requires the Division of Taxation to adopt implementing regulations within five months of enactment, with the tax taking effect on the first day of the fifth month following passage.