This bill revises New Jersey's tax lien foreclosure process to safeguard the equity of property owners, in response to recent judicial rulings, including the U.S. Supreme Court's decision in *Tyler v. Hennepin County*. It mandates that any excess equity remaining after a lienholder is reimbursed for property taxes and interest must be returned to the former property owner. The bill establishes a judicial sale of the property instead of an automatic transfer of title to the lienholder, prioritizing the reimbursement of the lienholder for taxes and costs, followed by municipal liens, and ultimately returning any remaining funds to the property owner.

In addition to these provisions, the bill introduces procedural changes such as prohibiting premium payments for tax sale certificates once the interest rate has been bid down to zero, requiring fractional interest rate bids, and utilizing a random-number generator for selecting successful bidders when bids are equal. It also allows tax collectors to charge a five percent fee on delinquent taxes when selling a tax sale certificate, which will be included in the certificate's face value. These amendments aim to ensure a fair process in tax lien foreclosures while protecting the rights and equity of property owners.

Statutes affected:
Introduced: 54:5-104.32, 54:5-104.64, 54:5-113.6