Eliminates transfer inheritance tax for step-grandchildren.

This bill eliminates New Jersey's inheritance tax for step-grandchildren by reclassifying them as tax-exempt beneficiaries, aligning their treatment with biological grandchildren and stepchildren. Currently, step-grandchildren (the children of a stepchild) are taxed at 15% on the first $700,000 and 16% on amounts above that, while biological grandchildren and stepchildren pay no tax. The bill amends tax law to exempt step-grandchildren from this tax, effective January 1, 2025. It directly affects step-grandchildren inheriting property from a step-grandparent who dies on or after that date.