Protects equity accrued by property owner in tax sale foreclosure.

This bill (S 1425) requires that after a property owner’s tax lien is foreclosed, any excess equity remaining from the sale - beyond what the lienholder paid in taxes and interest - must be returned to the former owner. It directly affects property owners who fell behind on taxes and both municipal and private lienholders involved in tax sale foreclosures. The bill amends New Jersey’s tax sale law to comply with the U.S. Supreme Court’s *Tyler v. Hennepin County* ruling, which found that keeping excess sale proceeds violates constitutional protections against uncompensated property takings. The key provision mandates that courts return excess funds to owners after reimbursing lienholders for taxes paid plus interest, ending the practice sometimes called "equity theft."