S3721

An Act concerning tax lien sales and amending R.S.54:5-26 and R.S.54:5-29.

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

1. R.S.54:5-26 is amended to read as follows:

54:5-26. a. Copies of the notice of a tax sale shall be set up in five of the most public places in the municipality, and a copy of the notice shall be published in a newspaper circulating in the municipality, once in each of the four calendar weeks preceding the calendar week containing the day appointed for the sale. In [lieu of any two publications] addition, notice to the property owner and to any person or entity entitled to notice of foreclosure pursuant to section 20 of P.L.1948, c.96 (C.54:5-104.48) [may] shall be given by [regular or] certified mail at least 90 days prior to the tax sale, and a second notice by certified mail at least 40, but not more than 50, days prior the tax sale, the costs of which shall be added to the cost of the sale in addition to those provided in R.S.54:5-38, not to exceed $25 for each notice for a particular property.

b. (1) If the property subject to the tax sale is owned by a senior citizen, notice of the tax sale shall be made by regular mail to the Area Agency on Aging for the county in which the property is located at least 40 days prior to a scheduled tax sale, the costs of which shall be added to the cost of the sale in addition to those provided in R.S.54:5-38, not to exceed $25 for each notice for a particular property. Upon receipt of the notice pursuant to this section, the Area Agency on Aging may immediately:

(a) send correspondence to the owner of the home subject to the tax lien explaining what actions can be taken to satisfy an outstanding lien; and

(b) implement the provisions of a program for home visits to senior citizens who have not responded to the correspondence sent by the Area Agency on Aging.

(2) The Commissioner of Community Affairs shall, pursuant to "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), promulgate rules and regulations to establish a “Senior Citizen Tax Lien Home Visit Program” to govern an Area Agency on Aging’s involvement with senior citizens who own property subject to a tax lien sale for the purposes of assisting senior citizens in satisfying outstanding tax liens.

(3) For the purposes of this subsection:

"Area Agency on Aging " means a county office designated by the Department of Human Services to serve as the primary entity
responsible for developing comprehensive, coordinated systems of community-based services for older adults.

“Senior citizen” means an individual who has applied for the senior citizen and disabled property tax deduction pursuant to P.L.1963, c.172 (C.54:4-8.40 et seq.), or the homestead property tax reimbursement program pursuant to P.L.1997, c.348 (C.54:4-8.67 et seq.).

c. For the purposes of notice in connection with a special tax sale for eligible properties which are on an abandoned property list established by the municipality pursuant to section 36 of P.L.1996, c.62 (C.55:19-55), a single advertisement published in a newspaper circulating in the municipality no less than four and no more than six weeks prior to the sale, along with notice to the property owner and any person or entity entitled to notice of foreclosure pursuant to section 20 of P.L.1948, c.96 (C.54:5-104.48), shall constitute sufficient notice of sale on the part of the municipality.

d. Failure of the property owner to receive a notice of a tax sale properly mailed by the tax collector shall [not] constitute grounds to void the subsequent tax sale. If ordinances of the municipality are required to be published in any special newspaper or newspapers, the notice shall be published therein.

(cf: P.L.2009, c.320, s.4)

2. R.S.54:5-29 is amended to read as follows:

54:5-29. At any time before sale the collector shall receive payment of the amount due on any property, together with the interest and costs set forth in R.S.54:5-38, incurred up to the time of payment. When a taxpayer whose property is included in a tax sale shall, prior to the sale, pay the full amount advertised in the sale, plus any interest on any other delinquencies, the tax collector shall then post the receipts, first to the interest, followed by the oldest delinquencies, costs and penalties which action shall then be cause for said property to be removed from the sale.

If, at any time before a tax sale, a taxpayer requests to pay the full amount advertised in the sale, or, if a sale has not yet been advertised, the full amount of any outstanding tax lien, the collector shall provide to the taxpayer, not later than seven days after the request, any information necessary to satisfy the lien within seven days. The collector shall not require that this request by the taxpayer be made in writing.

(cf: P.L.2009, c.320, s.5)

3. This act shall take effect immediately.

STATEMENT

This bill enhances notice requirements related to municipal tax sales. Under the bill, property owners must be notified by certified mail two times, once at least 90 days prior to the tax sale, and once at least 40, but not more than 50, days prior the tax sale. The bill enhances protections for senior citizens by requiring that the notice of the tax sale be sent to an "Area Agency on Aging," which means a county office on aging which is also designated as an area agency on aging for funding under the federal "Older Americans Act of 1965” Pub.L.89-73 (42 U.S.C. s.3001 et seq.) within 40 days of the tax sale. The Area Agency on Aging would then be authorized to immediately send correspondence to the owner of the home subject to the tax lien explaining what actions can be taken to satisfy an outstanding lien and implement the provisions of a program for home visits to senior citizens who have not responded to the correspondence sent by the Area Agency on Aging. Finally, the bill directs the Commissioner of Community Affairs to promulgate rules and regulations to establish a program for notification of, and home visits to, senior citizens for the purposes of assisting senior citizens in satisfying outstanding tax liens.

The bill also requires a tax collector to provide the necessary information to a taxpayer who requests to satisfy an outstanding tax lien not later than seven days after the request.