Matawan to hold $700K year-end tax lien sale Victoria House owes borough over $450,000 in taxes, services

Staff Writer

By Alison Granito

Matawan to hold $700K year-end tax lien sale
Victoria House owes
borough over $450,000 in taxes, services

MATAWAN — A tax lien sale has been scheduled for Dec. 31 to combat "significant delinquencies" which could affect the borough’s financial health next year.

According to borough officials, the accelerated tax sale has been triggered by one specific property owner who owes the township a large amount in back taxes, as well fees for water services rendered in 2001.

The Atrium at Matawan, also known as Victoria House, an assisted living facility on Route 79, owes the borough $433,810 on its three properties, an amount which will have accrued approximately $50,000 in interest by the end of the year, officials said.

Although the Atrium delinquency triggered the sale, all delinquent taxpayers, as well as residents and businesses who owe the borough for water and sewer charges, will also be subject to the tax sale.

The tax sale is scheduled for 9 a.m. Dec. 31 in the courtroom at Borough Hall on Main Street.

Borough Administrator Joseph P. Leo said that if the borough does not collect some or all of the $712,929 that is in arrears, the operating budget for next year will have to be slashed or the tax rate would have to go up for everyone.

After last week’s council meeting, Leo said that just the money owed by Atrium represents approximately 10 cents on the borough’s tax scale.

Although a tax sale would normally be held in June, borough officials said it was necessary to hold the tax sale before the end of the year in an effort to reduce the tax impact on the other 2,900 taxable properties in town.

"That much money represents a significant impact on the tax rate for Matawan," said Leo, who said that municipal officials had met with the management of Atrium several times to discuss the debt, but that nothing came of the meetings.

Leo said that as an unfortunate consequence of the accelerated tax sale, many residents and businesses that owe the borough smaller amounts of money may get caught up in the fray.

To reduce the impact on those who owe the town small amounts of money, the Borough Council voted last week to exempt properties which are in arrears for less than $10.

According to Councilman Michael Cannon, who chairs the water and sewer committee, letters have been sent to every property with delinquencies in an effort to notify owners and give them time to settle up with the borough before the sale is held.

"Unfortunately, in order to go after the money from Victoria House, we have to go after everyone else on the list," said Cannon, who noted that any of those who owe small amounts and received letters informing them of the sale, felt "understandably singled out."

"Dragging people who don’t owe much into this is not what we wanted to do, but we have to follow the letter of the law. We have no choice," added Cannon. "No one is going to be happy if taxes go up because of this next year."

Leo said that it is not too late for any of the 129 property owners who are in arrears to pay what they owe and avoid the tax sale.