What is the maximum amount a municipality may charge a lien holder for redemption?

• A. $50
• B. $75
• C. $100
• D. $25

Answer: (A)

When a tax lien is redeemed, the municipality can charge a redemption fee to cover the administrative costs of processing the redemption and updating records. The rule sets a fixed cap on this fee, and in this jurisdiction that cap is fifty dollars. So, the maximum the municipality may charge a lien holder for redemption is fifty dollars. Any amount higher than that would exceed the statutory limit and isn’t permitted.