Sponsored by:
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
Assemblywoman VERLINA REYNOLDS-JACKSON
District 15 (Hunterdon and Mercer)
Assemblyman REGINALD W. ATKINS
District 20 (Union)
Co-Sponsored by:
Assemblywoman Swift
SYNOPSIS
Requires premium payment made to municipality by purchaser of tax lien to be paid to property owner under certain circumstances.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning premium payments made by purchasers of tax liens and amending R.S.54:5-33.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. R.S.54:5-33 is amended to read as follows:
54:5-33. Payment for the sale shall be made before the conclusion of the sale, or the property shall be resold. Any premium payment shall be held by the collector and returned to the purchaser of the [fee] tax sale certificate if and when redemption is made. [If redemption is not made within five years from the date of sale the premium payment shall be turned over to the treasurer of the municipality] Not later than one year after a final judgment of foreclosure is entered vesting title to the property in the lienholder, the premium payment shall be deposited with the court and shall be paid, upon application therefor, to the person against whom a judgment in foreclosure has been recovered. If no application is made within one year of the date that the premium is deposited with the court, then upon application to the court by the chief financial officer of the municipality in which the property is located, the premium shall be turned over to the chief financial officer and become a part of the funds of the municipality. In the event that a petition of bankruptcy has been filed by the property owner, [the five year] that limitation shall be extended for each day that the foreclosure action is precluded by that bankruptcy filing.
In the event that a property is required to be sold at a sheriffs sale, the premium shall be refunded to the holder of the tax lien if the property is sold to a third party within five years from the date of sale.
(cf: P.L.2009, c.320, s.7)
2. This act shall take effect immediately.
STATEMENT
This bill revises current law pertaining to premium payments paid to a municipality by the purchaser if a tax lien. Current law provides that a premium payment is to be held by the municipal tax collector and returned to the purchaser of the tax sale certificate if and when redemption is made. If that redemption is not made within five years from the date of sale, the premium payment is to be turned over to the treasurer of the municipality and become a part of the funds of the municipality.
Instead, this bill would require that within one year of the date that a final judgment of foreclosure is entered vesting title to the property in the lienholder, the premium payment is to be deposited with the court and paid, upon application therefor, to the person against whom a judgment in foreclosure has been recovered. If no application is made within one year of the premium being deposited with the court, upon application to the court by the chief financial officer of the municipality in which the property is located, the premium will be turned over to the chief financial officer and become part of the funds of the municipality. The bill would also require that in the event that a property is required to be sold at a sheriffs sale, the premium is to be refunded to the holder of the tax lien if the property is sold to a third party within five years from the date of sale.