Revises tax lien foreclosure process to protect equity accrued by property owner in tax lien foreclosure.

This bill revises New Jersey's tax lien foreclosure process to require returning excess property equity to owners after liens are foreclosed. It directly affects property owners whose tax liens were foreclosed under current law, which allowed lienholders (municipalities or private entities) to keep all proceeds from property sales beyond unpaid taxes plus interest. The key provision mandates that courts must order lienholders to return any excess equity to the former owner once the lienholder is reimbursed for the taxes, interest, and costs they paid. This change responds to court rulings finding the prior practice unconstitutional under both the U.S. Fifth Amendment and New Jersey's Constitution, which prohibit uncompensated taking of property. The bill aims to align New Jersey law with the Supreme Court's Tyler v. Hennepin County decision and recent state appellate rulings.