NJ S2052

Revises New Jersey's tax lien foreclosure process to comply with the U.S. Supreme Court's 2023 decision in Tyler v. Hennepin County, which ruled that seizing a property owner's full equity for unpaid taxes violates the Fifth Amendment's Takings Clause.

Prohibits courts from awarding property ownership directly to tax lien purchasers upon foreclosure; instead requires a judicial sale conducted by the county sheriff with proceeds distributed in a specific priority order.

Mandates that after a judicial sale, funds are distributed first to reimburse the lien purchaser for taxes paid plus interest and legal costs, then to the municipality for other liens, then to the sheriff for sale costs, with remaining equity returned to the former property owner.

Eliminates the practice of bidders paying premium payments to municipalities when interest rates are bid down to zero at tax lien sales; instead requires bids in 0.25 percent interest rate increments with random selection for tied bids.

Applies immediately to any tax lien for which the right of redemption has not been foreclosed or final judgment rendered as of the effective date.