Back in the spring I reported on a Supreme Court case, Tyler v. Hennepin County, Minnesota, that has the potential to disrupt substantially the way in which New Jersey’s municipalities enforce the collection of real estate taxes. A delinquent property owner who does not pay outstanding taxes and interest faces the possibility of loss of all equity. The Supreme Court ruled that the loss of the equity in the property over and above the amount actually due was an unconstitutional taking. Weeks later I posted about an unpublished appellate case that suggested that the municipality could be the entity required to compensate the property owner for the taking.
On Monday the Appellate Division issued a published opinion relying in part on Tyler to affirm the trial court’s grant of the property owner’s application for relief from the tax foreclosure judgment and deciding that Tyler had, at least, pipeline retroactivity (it applies to cases pending (“in the pipeline”) when it was decided).
In a footnote the appellate court’s opinion stated that a bill had been introduced to reform New Jersey’s law to comply with Tyler. I presume that it will be among the many bills approved in the lame duck session. I wish that the professional media would provide more coverage of this important issue.
Jay Bohn
December 7, 2023