A-3772/S-2334 would revise the “Tax Sale Law” and the “In Rem Tax Foreclosure Act” to bring those laws in compliance with the 2023 United States Supreme Court decision in Tyler v. Hennepin County, which led to concerns that New Jersey’s system concerning the sale and ultimate foreclosure of tax liens could violate the U.S. Constitution.
Municipalities rely on the revenue from tax sales to fill the revenue gap created when property owners fail to pay their property taxes. Without the ability to fill this gap, municipalities are put in a position where other measures need to be taken to ensure a balanced budget. This could include increasing property taxes or cutting critical services. Maintaining the viability of a tax sale certificate market is paramount.
The League supports S-2334/A-3772 as we believe it represents a fair and balanced approach to resolving the issues created by Tyler and provides protection for property owners, all while ensuring the viability of the tax sale certificate market. We urge the Legislature to move these bills quickly through the legislative process.
Yesterday, S-2334 was reported favorably out of the Senate Budget and Appropriations Committee and A-3772 was favorably reported out of both the Assembly State and Local Government Committee and the Assembly Appropriations Committee. Both bills could be voted on in their respective houses this week.
Contact: Frank Marshall, Esq., Associate General Counsel, fmarshall@njlm.org, 609-695-3481, x137.