Galloway Collects $1.3 Million in Tax Lien Sale

Galloway Township collected $1.3 million in its tax lien sale on Tuesday, Dec. 20, tax collector Al Stanley said today.

As part of the sale, 1,439 properties were available, up about 200 properties from last year’s sale. Every property was sold, and the municipality picked up $149,000 in liens on properties that were not bid on.

According to Stanley, the municipal liens are covered by the township’s Reserve Fund for Uncollected Taxes. Stanley expects taxpayers to see little impact on their taxes because it’s a nonspending line item in the 2012 municipal budget.

“I can’t answer how taxes will be affected until all the revenue figures for the year are in,” said Stanley, adding the information will be calculated in January.

Last year, the township held its biggest tax lien sale in history, selling just over 1,200 certificates for $1.6 million.

In a tax lien sale, bidders don’t purchase the property, just the lien against the property. The lien holder pays the property’s taxes, and has the option to pick up future taxes each time they come up.

After two years, the lien holder may take over ownership of the business, but the owner may pay off the lien at any time. The lien holder would receive the money they paid out in taxes, along with the interest.

“(The number of properties) is a little higher each year,” said Stanley, who stated the township has to have a tax lien sale each year. “ … The prices varied. We had one go for $1 and we had one go for $60,000.”

As part of the sale, lien was among those . All back taxes of $7,547.10 were paid off, but the empty lot adjacent to the building was among the lots that became a municipal lien.

Kennedy’s has been vacant since an after hours fire on March 21, and the building has been deemed “unsafe.”