Jersey City Council clashes over Dec. 21 tax-lien sale — vote Wednesday

JERSEY CITY — Jersey City homeowners who are behind on their property taxes could see that debt sold to private investors on Dec. 21 — and some City Council members say that’s too fast in a year when tax bills jumped.

The council is set to vote Wednesday night on two resolutions: one authorizing an “accelerated” tax sale in 2026 and one letting the city run its first-ever electronic tax sale online. At Monday’s council caucus (Oct. 5), the two items drew close to 40 minutes of questions — and a heated exchange that ended with a public apology. Video of the tax-sale discussion starts around the 50:40 mark (Jersey City TV).

What a tax sale means for you

When a property owner falls behind, the city can sell the unpaid balance as a “tax lien certificate.” An investor pays the city now and collects the debt — plus interest — from the owner later. If the owner never pays, the lien holder can eventually move to foreclose. The tax collector told council members a lien holder has two years to file foreclosure after the sale.

“Accelerated” means the city sells this year’s unpaid charges before Dec. 31 instead of waiting for a standard sale, which can be held any time and covers prior-year charges. The city’s resolution says it “desires to continue to hold accelerated tax sales for the positive fiscal impact on tax collections.”

The city’s case: about $7 million

A city finance official answering questions told the council the budget assumes the sale happens this year.

“I think you can assume the city has collected about seven million in tax sales for several years, that we will be short $7 million,” he said.

He said the shortfall would mean “not paying bills” first, and would “likely impact the ’27 budget by some amount.”

The tax collector said the earliest a standard sale could happen is early January because it requires at least 50 days’ notice to owners — making the real difference “between December 21st and January 4th,” as one council member put it.

The pushback

“Nothing is routine about this year,” one council member said, citing this year’s tax increase and the “idea of inflicting a lien on people who may be struggling to pay.” The same member said the administration’s own numbers showed open liens on resident-owned properties rising from 10 in 2023 to 45 in 2024 and 126 in 2025, and said, “I’m not inclined to do an accelerated tax sale… I’d rather just do the standard traditional and do it in 2027, give people more time.”

Another council member said many affected owners are seniors who no longer have a mortgage, and that selling liens “during a holiday season” adds pressure. “I don’t want it to look like we are taking advantage of people’s tribulations to get our bills paid when they’re trying to get theirs paid,” he said.

The exchange got heated. One council member accused the administration of “the kind of game that gets played and trying to pull the wool over our eyes.” The finance official answered that he was “equally insulted” at that suggestion: “I’m answering your questions to the best of my ability. The decision you can make is we will be $7 million shorter than we otherwise would be.” The council member later apologized publicly — “I was out of line. I’m sorry about that” — and repeated the apology near the end of the caucus.

Council President Denise Ridley noted the sale has been held in December “as long as I’ve been paying attention,” but said “ultimately, it’s up to the council to decide”: “Are we willing to take the possibly seven million dollars short in order to give residents 30 more days, or do we want to keep the standard tax sale date?”

A council member asked for more time to get answers, and the finance official said delaying the vote “for a meeting or two” would not stop a December sale.

First online tax sale — and who buys

The electronic-sale resolution would let the tax collector use NJ Tax Lien Investors/RealAuction.com, approved by the state Division of Local Government Services. The resolution says an online sale “provides a greater pool of potential lien buyers.” The tax collector estimated the cost at about $50,000, charged “$12 per certificate,” paid from the tax collector’s operating account. He said “four or five” investors show up on “all of the tax liens”; a council member responded, “These guys are monopolizing the system.”

Interest rates

Officials said the city now charges 4% and 9% interest on late third- and fourth-quarter taxes — half the 18% state maximum — and that lien buyers bid that rate down, often to 0% on the original certificate. Council members disputed how much owners end up paying once a lien is sold.

What’s next: The council meets Wednesday, Oct. 7, at 6 p.m. at City Hall, 280 Grove St. Residents can speak during public comment. Agenda packet: Oct. 7 regular meeting.

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Hudson TV asks: Should Jersey City wait until January to sell unpaid tax debts, even if it leaves about a $7 million hole?

Share your take in the comments — ❤️ wait until January · 😡 keep the December sale.