New Jersey 2024-2025 Regular Session

New Jersey Senate Bill S646

Introduced
1/9/24  
Refer
1/9/24  
Report Pass
2/15/24  

Caption

Concerns foreclosure of certain tax liens on real property.

Impact

If enacted, SB 646 will have significant implications for state laws related to property tax collections and municipal authorities. By empowering municipalities to act more decisively against long-delinquent tax liens, the bill addresses the backlog of unresolved tax issues that often burden local governments. This amendment could improve local government revenues and restore defaulted properties to the tax rolls. It may also contribute to revitalizing neighborhoods where properties have remained neglected due to unpaid taxes, encouraging community development and investment opportunities.

Summary

Senate Bill 646 focuses on modifying the foreclosure process for certain tax liens on real property in New Jersey. Specifically, it amends existing laws to allow municipalities to utilize a summary proceeding for foreclosing tax sale certificates that are at least 20 years old. This change is intended to streamline foreclosure processes, enabling municipalities to clear long-standing tax liens and recover owed property taxes more effectively. The bill facilitates municipal action without requiring a municipal governing body's resolution to initiate foreclosure, thus aiming to simplify and expedite the necessary legal processes involved in handling old tax liens.

Sentiment

The sentiment surrounding SB 646 appears to be largely supportive among legislators who recognize the need for reform in the management of tax liens and municipal fiscal health. Proponents argue that the bill represents an essential step towards enhancing municipalities' ability to generate revenue through property tax enforcement. However, there may be concerns from property owner advocates regarding the rapid nature of the summary proceedings, as they could perceive it as infringing on individual property rights, particularly for properties that have not been adequately advertised for sale prior to foreclosure.

Contention

While most discussions on the bill have seemed geared towards improving municipal revenues, notable contention could arise around the bill’s potential for expediting the foreclosure process without extensive due process for affected property owners. Critics may voice concerns about ensuring that proper notice and opportunities for redemption are provided to property owners facing foreclosure under these provisions. The balance between effectively managing municipal finances and protecting property rights will likely be a focal point as the bill progresses.

Companion Bills

NJ S4015

Carry Over Concerns foreclosure of certain tax liens on real property.

Similar Bills

CA AB271

Property Assessed Clean Energy program.

NJ S4015

Concerns foreclosure of certain tax liens on real property.

NJ A3772

Revises process for property tax lien holder to foreclose right to redeem a property tax lien; allows property owner to protect remaining equity.

NJ S2334

Revises process for property tax lien holder to foreclose right to redeem a property tax lien; allows property owner to protect remaining equity.

NJ A3968

Revises tax lien foreclosure process to protect equity accrued by property owner in tax lien foreclosure.

NJ S3343

Revises tax lien foreclosure process to protect equity accrued by property owner in tax lien foreclosure.

MO SB1190

Modifies provisions relating to the Municipal Land Reutilization Law

CT HB05399

An Act Concerning The Assignment Of Certain Property Tax, Water And Sewer Liens.