Taxpayer’s Appeal Denied, Found Insufficient to Constitute “Excessive Fine”

by: Anthony F. Della Pelle
14 May 2009

The challenge to a 2007 property tax assessment by a Bergen County property owner was denied by a New Jersey appeals court on the basis that the owner failed to provide income and expense information to the municipal tax assessor as is required under New Jersey law.  1717 Realty Associates v. Borough of Fair Lawn, N.J. Superior Court Appellate Division Docket No. A-4666-07T2.    The property consisted of income -producing property which the Borough of Fair Lawn had assessed for nearly $30 million dollars.  The owner contended that the property was over assessed by approximately $10 million.

Because the owner did not respond to a “Chapter 91” request sent by the Borough’s Tax Assessor for income and expense information on the property, as provided by N.J.S.A. 54:4-34, the Borough moved to dismiss the owner’s tax appeal for 2007.  Due to its failure to provide the required information, the owner was only entitled to a “reasonableness” hearing, and failed to prove at that hearing that either the data or methodology relied upon by the assessor in arriving at the $30 million dollar assessment was unreasonable.

The property owner also contended that the difference between the resulting tax bill and the tax which it suggested should be due constitutes an “excessive fine” in violation of the United States and New Jersey Constitutions.  However, these arguments were rejected by the appellate court, and the Borough’s assessment was upheld.

To read a copy of the court’s opinion, click here.

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