Establishes standards for electronic tax lien sales.
The bill addresses issues like exorbitant interest rates on unpaid residential taxes and the potential for bid rigging that has troubled the electronic tax lien auction process. Under the new provisions, municipalities are required to notify property owners of the status of their tax liens promptly and transparently. The bill aims to create a more accountable and equitable system for handling tax lien sales by introducing stricter rules on how these transactions are conducted and promoting fair bidding practices across municipalities.
Assembly Bill A2991 seeks to establish standards for electronic tax lien sales in New Jersey, in response to concerns raised by the State Commission of Investigation regarding the integrity of these sales. The bill mandates the Department of Community Affairs (DCA) to evaluate and select vendors for conducting such sales, ensuring that a competitive process is followed to enhance oversight and transparency. The DCA will publish requests for quotations from qualified vendors to conduct electronic tax lien sales, allowing municipalities to choose from a list of at least five approved vendors without the need for additional public bidding processes.
Criticism around the previous method of electronic tax lien sales highlighted a lack of competitive bidding, oversight, and transparency. With A2991, the intent is to rectify these issues by implementing stricter guidelines and procedures recommended by the State Commission of Investigation. However, some stakeholders may still be wary of how these changes will be operationalized and whether the vendors selected will act in the best interests of both municipalities and taxpayers.