To Wield Chapter 91 Sword to Dismiss Tax Appeals Towns Must Play by the Rules

Name: McKirdy & Riskin, P.A.
Address: 136 South Street, Morristown, NJ, 07850
Telephone: 973-539-8900

Home » Property Tax Appeal » To Wield Chapter 91 Sword to Dismiss Tax Appeals Towns Must Play by the Rules

by: Anthony F. Della Pelle

11 May 2012

We have made numerous posts about appeals that were dismissed due to the property owner’s failure to respond to a municipal tax assessor’s request for income and expense information under N.J.S.A. 54:4-34, also known as “Chapter 91.” While it seems municipalities are aggressively invoking Chapter 91 to attack commercial tax appeals and the Tax Court routinely grants the requested relief to dismiss tax appeals, it is important to remember that municipalities must adhere to the requirements of the statute in making such requests.

In United Parcel Service v. Secaucus, Tax Ct., Docket No. 006750-2011 (Nugent, J.T.C.) (May 3, 2012), the Town of Secaucus filed a Chapter 91 motion to dismiss plaintiff’s tax appeal claiming that the property owner failed to respond to the assessor’s request for income and expense information. The Tax Court denied the motion finding that the Town’s assessor sent a form that: (1) did not identify the property; (2) failed to include a cover letter or clear instructions regarding what information was requested and why; and (3) did not supply the taxpayer with a copy the statute as required under the law. Therefore, the Court held that the assessor’s request did not constitute a valid request under the statute and denied the Town’s motion to dismiss.

This case suggests that, when it comes to “Chapter 91” requests, what’s good for goose, is also good for the gander.