Bill Text: NJ S2472 | 2020-2021 | Regular Session | Introduced
Bill Title: Caps interest rate for redemption of tax liens at nine percent per year.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-05-11 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2472 Detail]
Download: New_Jersey-2020-S2472-Introduced.html
Sponsored by:
Senator PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
SYNOPSIS
Caps interest rate for redemption of tax liens at nine percent per year.
CURRENT VERSION OF TEXT
As introduced.
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.
