This bill aims to enhance the transparency and accountability of online tax sales in New Jersey, addressing concerns raised by the State Commission of Investigation (SCI) regarding the integrity of the process. The Department of Community Affairs (DCA) will be required to solicit proposals from nationally recognized electronic municipal tax lien services to create a list of qualified vendors for municipalities to conduct electronic tax lien sales. The bill mandates that the DCA publish requests for quotations on its website, ensuring that vendors demonstrate relevant experience and disclose corporate ownership. Municipalities will be allowed to contract with these approved vendors without the need for public bidding, provided they receive corporate disclosure forms for significant subcontractors.

Additionally, the bill requires the Director of the Division of Local Government Services to report on the efficacy of online tax lien sales within 90 days of its enactment. This report will evaluate the performance of the current vendor, consider whether tax sales should be conducted at the county level, and assess the need for a mandatory minimum delinquency amount and a maximum interest rate for tax delinquencies. Furthermore, tax collectors will be mandated to notify property owners after a lien sale, providing details on how to pay off debts and the consequences of the sale. The bill also removes the pilot program status for electronic tax sales, streamlining the process for municipalities.

Statutes affected:
Introduced: 54:5-19.1, 54:5-30.1