Bill Text: NJ S2510 | 2020-2021 | Regular Session | Introduced
Bill Title: Caps interest rate to redeem tax lien at one percent under certain emergency circumstances.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2020-06-04 - Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee [S2510 Detail]
Download: New_Jersey-2020-S2510-Introduced.html
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Caps interest rate to redeem tax lien at one percent under certain emergency circumstances.
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. a. 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%] eighteen 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.
b. Notwithstanding the provisions of subsection a. of this section, for any tax year in which a public health emergency is declared by the Governor and is in effect, .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 one percent per year. If at the sale a person shall offer to purchase subject to redemption at a rate of interest less than 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 one percent per year for any tax year in which a public health emergency was declared by the Governor and was in effect. Current law caps that interest rate at 18 percent per year.
