Schneck Law Group LLC

Over $150,000,000.00 of property taxes have been refunded by the property tax attorneys associated with Schneck Law Group LLC.

Schneck Law Group LLC exclusively represents property owners in property tax appeals and focuses on reducing real estate taxes on commercial, industrial and multi-tenant real estate. Schneck Law Group LLC has 3 property tax attorneys and a staff of trained paralegals. The firm's founder and managing member, Michael Schneck, may be reached via email at

For a free consultation about a potential property tax appeal, please do not hesitate to contact me.

Direct Dial: (973) 533-9300, ext. 1

Thursday, February 28, 2008

New Tax Sale Certificate Legislation

Assemblyman John J. McKeon (D) Assemblyman Thomas P. Giblin (D) posted proposed legislation last evening that would clarify the procedural and notice requirements for the issuance of Tax Sale Certificates on an accelerated and standard basis. This proposed legislation will likely be heard in the Assembly Housing Committee this upcoming Monday.

The statement of bill A-1619 provides:

“Section 1 of the bill would clarify that a municipality may hold either a standard tax sale (the sale of liens after the close of the fiscal year) or an accelerated tax sale (the sale of liens during the fiscal year). The current language of the statute authorizing the sale of tax liens has been criticized as confusing for many new tax collectors, and this proposed amendment to the existing statute would specifically provide for either a standard or an accelerated tax sale.

Section 2 of the bill would clarify the dates for the preparation of the list of properties subject to the tax sale, to reflect a date for a standard tax sale and a date for an accelerated tax sale.

Section 3 of the bill would allow the list of properties subject to tax sale to be maintained in either book form, or as a bound hard copy of a computer-generated list, to reflect the current practice of maintaining municipal records on computer.

Section 4 of the bill would amend R.S.54:5-26 to replace the current phrase "set of notices" with the word "notice," because the current phrase has created some confusion for tax collectors with respect to the mailing of notices of tax sale, as permitted by the statute. This proposed change would clarify that the cost of a mailing of a notice of tax sale, by either regular or certified mail, to each interested party may not exceed $25 for each notice, or mailing, given to an interested party. The cost of mailing may be added to the cost of the tax sale as a municipal charge, allowing municipalities to recoup the cost of the mailings from the purchaser of the lien.

Section 5 of the bill would add the term "interest" and a statutory reference to R.S.54:5-38 to the language of R.S.54:5-29, which authorizes the tax collector, any time prior to the sale of the tax lien, to receive payment of the amount due on a property, together with interest and costs. This new language clarifies that the interest, together with all of the applicable costs set forth in R.S.54:5-38, must be satisfied in order to remove the lien from the tax sale.

Section 6 of the bill authorizes a tax collector to sell a tax lien at no interest, and instead collect a premium for the tax lien sale. Current law authorizes an interest rate of less than 1%, but does not specifically authorize the payment of no interest on a tax lien. This language effectively clarifies that an interest rate of less than 1% includes "no interest" on the lien.

Section 7 would extend the date of an action for foreclosure of a tax lien for each day that foreclosure of the lien is precluded by the bankruptcy of the property owner.

Section 8 of the bill would clarify the dates for the payment of fees by the purchaser of a tax lien of the costs incurred by a municipality in a standard or an accelerated tax sale. This language is intended to provide uniformity between municipalities of charging and collecting from the lien purchaser the costs incurred by the municipality of holding the sale.

Section 9 of the bill would require the holder of the tax sale certificate to record the tax sale certificate and to provide the tax collector with a copy of the recorded certificate showing the date of recording, the book and page in which the lien is recorded, and the cost of recording the tax sale certificate. It also requires the collector to maintain the information as a permanent record. The intent of this language is to provide this information to the tax collector so that a certificate of redemption of the tax lien may be issued upon the payment in fill of the lien amount. This information is needed by the collector in order to execute the certificate.

Sections 10 and 11 of the bill concern the calculation by the tax collector of the amount need to redeem the tax sale certificate, referred to as the redemption amount. Section 10 of the bill would amend R.S.54:5-54 to require the tax collector to provide to any party entitled to redeem a tax sale certificate, two redemption calculations within a calendar year at no cost. It would also authorize the governing body of a municipality, by ordinance, to require a fee not to exceed $50 for each subsequent calculation requested of the tax collector. The language also requires that a request for a redemption calculation shall be made in writing to the tax collector. Section 11 would amend section 7 of P.L.1965, c.187 (C.54:5-97.1) to allow a municipality to charge a $50 fee for a redemption calculation.

Section 12 of the bill would make discretionary to the tax collector the sale of a tax lien that, together with the interest, penalties, charges and costs of advertising, would amount to less than $100.

Section 13 of the bill would require that if the owner of a tax lien fails to surrender a tax sale certificate within five years of being notified of redemption, the unclaimed redemption monies will escheat to the municipality. The provisions of this section would apply to any redemption monies being held by a tax collector on or after the effective date of the bill.

Section 14 of the bill would require that all redemptions of tax liens must be made through the tax collector's office, unless authorized by court order or pursuant to federal bankruptcy law. It would also require that any lienholder who knowingly causes a redemption to be made outside a tax collector's office in violation of this section will forfeit the tax sale certificate to the redeeming party."

The full text of the bill may be found HERE.


Post a Comment