Premiums held by the Tax Collector are not refunded if not redeemed by the end of how many years?

• A. 3 years
• B. 5 years
• C. 1 year
• D. 7 years

Answer: (B)

The key idea is the redemption period for tax sales and what happens to premiums held by the Tax Collector. In New Jersey, premiums paid by the winning bidder at a tax sale are held for five years. If the property is redeemed within that five-year window, the redemption process involves the owner paying back taxes plus any applicable amounts, and the premium is handled as part of that redemption. If no redemption occurs by the end of five years, there is no refund of the premium to the owner, and the purchaser may proceed to obtain a deed to the property, keeping the premium as part of the sale proceeds. So five years is the cutoff.