New Jersey Assembly Bill A3331

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

Requires premium payment made to municipality by purchaser of tax lien to be paid to property owner under certain circumstances.

Impact

The implications of A3331 are significant for the interaction between property owners and municipalities regarding tax liens. By introducing a structured process for the return of premium payments post-foreclosure, the bill aims to limit the duration these funds are retained by the municipality and enhance financial recovery options for property owners. This adjustment addresses the concerns from numerous stakeholders about the lack of recourse for property owners in situations where their properties undergo tax lien sales potent to foreclosure. As a result, it may foster a more equitable environment for those facing financial hardships due to property taxes.

Summary

Assembly Bill A3331 aims to modify the existing law concerning premium payments made to municipalities by purchasers of tax liens. The bill proposes that when a tax lien is sold, the premium payment typically held by the municipal tax collector will have new stipulations regarding its handling, particularly under foreclosure circumstances. Specifically, A3331 mandates that within a year after a final judgment of foreclosure is entered, the premium payment must be deposited with the court and can be claimed by the person against whom the foreclosure was judged. This seeks to ensure that owners of the properties have a pathway to recover funds that might otherwise be lost to the municipality if not redeemed in a specified timeframe.

Contention

While many support A3331 for its beneficial changes to existing law, there may be contention surrounding the logistics of managing these premium payments and the court's role in adjudicating claims. Some lawmakers and municipal authorities may express concern about the added administrative burden and potential delays in fund recovery, while proponent advocates may argue the need for greater protections for property owners facing foreclosure. Furthermore, discussions might arise around ensuring the court processes are straightforward and efficient to prevent unnecessary complications that would hinder the bill's intended benefits.