Exempts creditor from paying municipal property registration fee if property is subject to automatic stay under federal Bankruptcy Code.

A3237 FISCAL ESTIMATE

LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 3237

STATE OF NEW JERSEY

222nd LEGISLATURE

DATED: JUNE 16, 2026

SUMMARY

Synopsis:

Exempts creditor from paying municipal registration fee if
property is subject to automatic stay under federal Bankruptcy Code.

Type of Impact:

Decrease in local revenue.

Agencies Affected:

Certain municipalities.

Office of
Legislative Services Estimate

Fiscal Impact

Annual

Potential Local Revenue Decrease

Indeterminate

�

The
Office of Legislative Services (OLS) estimates that exempting foreclosing
creditors from payment of an annual registration fee for as long as the
property remains subject to the automatic stay provision of the federal
Bankruptcy Code would result in an indeterminate decrease in local revenues.�

�

The
OLS notes that under existing law, a municipality may adopt an ordinance to
impose an annual fee on a foreclosing creditor to register a property.

�

The
OLS finds that the local revenue decreases under the bill are indeterminate
because the amount of the annual fee in each opt-in municipality, the number of
properties that would be exempted, and the length of time the individual
properties would be exempted are all unknown.

BILL DESCRIPTION

����� This bill would exempt certain creditors from payment
of a property registration fee for as long as the property remains subject to
the automatic stay provision of the federal Bankruptcy Code.� Currently,
P.L.2021, c.444 authorizes a municipality, by ordinance, to require a
foreclosing creditor to register property, and to impose an annual fee on the
creditor for registering the property.� Under the bill, a creditor who has
sought the protection of the federal Bankruptcy Code, and who is protected by
the automatic stay provision of the federal Bankruptcy Code, would be excused
from the payment of the property registration fees authorized by P.L.2021,
c.444.

FISCAL ANALYSIS

EXECUTIVE BRANCH

����� None received.

OFFICE OF LEGISLATIVE SERVICES

����� The OLS estimates that exempting foreclosing creditors
from payment of an annual registration fee under certain circumstances would
result in an indeterminate decrease in local revenues.��

����� Under existing law, a municipality may adopt an
ordinance to impose an annual fee on a foreclosing creditor to register a
property.� This bill would exempt certain creditors from payment of this fee
for as long as the property remains subject to the automatic stay provision of
the federal Bankruptcy Code.� The amount of the fee is set by the local
ordinance, subject to the following limitations under State law: the annual fee
may be up to $500 for a property that is required to be registered because a
summons and complaint in an action to foreclose was filed by a creditor and up
to $2,000 for a property that is vacant or abandoned, as defined in the local
ordinance, or becomes vacant or abandoned at any time thereafter while the
property is in foreclosure.� The bill would have no fiscal impact on a
municipality which does not impose such an annual fee.�

����� The OLS finds that the local revenue decreases under
the bill are indeterminate because the amount of the annual fee in each opt-in
municipality, the number of properties that would be exempted, and the length
of time the individual properties would be exempted are all unknown.

Section:

Local Government

Analyst:

Grace Ahlin

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).