[Corrected Copy]

[First Reprint]

ASSEMBLY, No. 2244

STATE OF NEW JERSEY

INTRODUCED JUNE 18, 1996

By Assemblymen JONES, DiGAETANO and Dalton

An Act establishing a State municipal property tax lien fund and supplementing Title 52 of the Revised Statutes.

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

    1. a. The State Municipal Property Tax Lien Fund (hereinafter referred to as the "fund") is established as a non-lapsing, revolving fund. The fund shall be administered by the Department of Commerce and Economic Development, and shall be credited with all proceeds from the sale or assignment of municipal tax liens pursuant to this section. Interest received on moneys in the fund and sums received as repayment of principal and interest on outstanding loans made from the fund shall be credited to the fund. The Department of Commerce and Economic Development, in the administration of the fund, is authorized to assign to the New Jersey Economic Development Authority the responsibility for the purchase or assignment of property tax liens held by a municipality, the issuance of debt secured by such liens, and the sale of purchased or assigned tax liens, either individually or in bulk. The department is further authorized to pay or reimburse the authority in the amounts as the department agrees are appropriate for all services rendered by the authority in connection with any assignment of responsibility under the terms of this section out of moneys held in the fund for the purchase of municipally held property tax liens. The authority, if assigned responsibility by the department, is authorized to service liens held by the fund, foreclose liens ¹except as provided in subsection e. of this section¹, and manage, sell and own property for the benefit of the fund. The authority is further authorized to contract with private vendors for the servicing of liens held by the fund or the management of property owned by the authority for the benefit of the fund.

    b. Moneys in the fund shall be allocated and used for the following purposes and no others:

    (1) Purchase of property tax liens held by a municipality, either individually or in bulk pursuant to P.L.1993, c.325 (C.54:5-113.4); and

    (2) Subsequent tax payments to a municipality secured by property tax liens held by the fund; and

    (3) To secure debt for redevelopment projects or economic development projects located in a municipality participating in the fund.

    c. The fund may accept the assignment or transfer, either for value or not for value, of property tax liens held by a municipality.

    d. The fund may be temporarily funded initially by other moneys of the authority upon such terms as are approved by the Commissioner of Commerce and Economic Development.

    ¹e. A municipality shall attached to each tax sale certificate sold, assigned or transferred to the fund a senior citizen, disabled or surviving spouse tax foreclosure moratorium statement indicating whether or not the property owner qualifies for a senior citizen, disabled or surviving spouse property tax deduction pursuant to P.L.1963, c.172 (C.54:4-8.40 et seq.). The fund shall not foreclose on any property for which the moratorium statement indicates that the property is owned by a senior citizen, disabled or surviving spouse until after the title to the property is conveyed to another owner.¹

    2. The Commissioner of Commerce and Economic Development shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to effectuate the purposes of this act.

    3. This act shall take effect immediately.

Establishes State Municipal Property Tax Lien Fund.