New Jersey 2022-2023 Regular Session

New Jersey Assembly Bill A567

Introduced
1/11/22  

Caption

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

Impact

The passage of A567 would have a notable impact on state laws related to property tax and redemption processes. By lowering the interest rate for tax lien redemptions, the bill is likely to improve affordability for property owners, making it easier for them to reclaim their properties before they are lost to tax lien sales. This change reflects a broader trend in legislative efforts to protect homeowners and ensure fair treatment in the face of financial adversity. Furthermore, it aims to align state laws more closely with the need for economic support during distressing financial times.

Summary

Assembly Bill A567 seeks to amend the existing laws governing tax lien redemption in New Jersey by capping the interest rate at which tax liens can be redeemed to nine percent per year. Currently, the interest rate for such redemptions is capped at eighteen percent, meaning that homeowners and property owners face significant financial burdens under the existing regime. This bill aims to reduce these burdens by providing a more manageable rate, potentially aiding homeowners who might struggle to redeem their properties due to high interest rates.

Contention

Discussion around A567 has raised points of contention primarily among stakeholders in the real estate and finance sectors. While proponents of the bill, including various legislative members and homeowner advocacy groups, argue that the reduction in interest rates can mitigate property loss and provide necessary relief to struggling families, critics express concerns about the implications for municipalities. They argue that a lower cap on interest rates may limit the financial resources available to municipalities to recover unpaid taxes and reduce their budgetary flexibility. This tension highlights the complex nature of policy decisions that directly affect both individual rights and municipal financial health.

Companion Bills

NJ S979

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

Previously Filed As

NJ A3896

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

NJ A1117

Clarifies notice required to be provided to property taxpayers of change in interest rate on delinquent property taxes under certain emergency circumstances; permits municipality to extend grace period under certain emergency circumstances.

NJ S2847

Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.

NJ A276

Reduces gross income tax rates by ten percent over three years.

NJ S0655

Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.

NJ H5757

Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.

NJ H7810

Caps delinquent tax interest rate at 12%. Prohibits audits beyond 3 years from date of tax filing, 7 years for fraudulent filings, and in no event beyond 10 years from date of filing or required filing date, whichever is later.

NJ S954

Reduces gross income tax rates by ten percent over three years.

NJ SB381

10 Percent Credit Card Interest Rate Cap Act

NJ HB1944

10 Percent Credit Card Interest Rate Cap Act

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