If the tax sale exceeds 15% of the tax levy, who must purchase the property or certificate?

• A. The Tax Collector
• B. The Municipality
• C. The buyer
• D. The State

Answer: (D)

In New Jersey, there’s a protective rule in the tax sale process: if the amount bid at a tax sale would be more than 15% of the annual tax levy, the purchasing responsibility shifts to the State. This safeguard prevents private bidders from taking control of a property or lien in a way that could unduly burden the municipality or the property owner, and it keeps the sale process within a public interest framework. So, when that 15% threshold is exceeded, the State must purchase the property or the certificate rather than a private bidder. Normally the buyer would be a private party, but this specific scenario calls for state involvement.