Bill Text: NJ A567 | 2022-2023 | Regular Session | Introduced

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Bill Title: Caps interest rate for redemption of tax lien at nine percent per year.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-11 - Introduced, Referred to Assembly State and Local Government Committee [A567 Detail]

Download: New_Jersey-2022-A567-Introduced.html

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ASSEMBLY, No. 567

STATE OF NEW JERSEY

220th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2022 SESSION

 

 

Sponsored by:

Assemblyman  ROBERT J. KARABINCHAK

District 18 (Middlesex)

Assemblyman  STERLEY S. STANLEY

District 18 (Middlesex)

 

 

 

 

SYNOPSIS

     Caps interest rate for redemption of tax lien at 9 percent per year.

 

CURRENT VERSION OF TEXT

     Introduced Pending Technical Review by Legislative Counsel.

  

An Act concerning the interest rate for the redemption of a tax lien and amending R.S.54:5-32.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  R.S.54:5-32 is amended to read as follows:

     54:5-32.  The sale shall be made in fee to such person as will purchase the property, subject to redemption at the lowest rate of interest, but in no case in excess of [18%] nine percent per [annum] year.  If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than [1%] one percent, or at no interest, he may, in lieu of any rate of interest to redeem, offer a premium over and above the amount of taxes, assessments or other charges, as in this chapter specified, due the municipality, and the property shall be struck off and sold to the bidder who offers to pay the amount of such taxes, assessments or charges, plus the highest amount of premium.

(cf:  P.L.2009, c.320, s.6)

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would cap the interest rate for the redemption of a tax lien to nine percent per year.  Current law caps that interest rate at 18 percent per year.