Taxpayers Strikeout in Chapter 91 Doubleheader
In two separate opinions issued on the same day, New Jersey Tax Court Judge Nugent dismissed two tax appeals because the respective taxpayers failed to respond to the assessor’s request for income and expense information pursuant to N.J.S.A. 54:4-34, also known as “Chapter 91”. In these cases, the taxpayers relied on arguments that have historically resulted in appeals being dismissed, which were that the notice was not received or that it was unclear. In both instances, the court reviewed the obligations imposed on the assessor under the statute and found that the assessor had complied and dismissed the appeals accordingly.
In the first case, Rte. 17 Parkway Assoc. c/o Muscrarelle v. Borough of Paramus, the Chapter 91 request was sent by certified mail and regular mail. The assessor addressed it to the taxpayer at the address on file with the assessor’s office. The certified mail was returned as unclaimed. The request mailed by regular mail was never returned to the assessor’s office as undelivered. The court noted that the assessor had used this same address for past Chapter 91 requests and had received a response from the taxpayer. In addition, the record showed that the tax bill for the subject property was sent to this same address and had been paid. The taxpayer argued that it never received the Chapter 91 request certified mailing and that it had discontinued use of that address for business purposes several years earlier. The court found however, that the assessor complied with the requirements of the statute by sending the request by certified mail to the address on file with the assessor and granted the Borough’s motion.
In the second case,UTSI Finance Inc. v. Town of Kearny, in response to the Town’s Chapter 91 motion to dismiss the 2012 tax appeal, the taxpayer argued conceded that it received the request in September 2011, but claimed it was unclear and therefore no response was required. The taxpayer alleged that the assessor’s request was unclear since a precise reporting period was not identified in the request. The Chapter 91 notice requested “current income and expense data for the property for this year as of the date of your response…” or, alternatively an “estimate [of] the income and expense data for the property for the year 2011.” The court disagreed that the language of the request was unclear and found that the request was framed in language which provided plaintiff with fair notice of the information sought. Because the taxpayer failed to respond to the valid Chapter 91 request, the Town’s motion was granted.
These cases present two more reminders that Chapter 91 remains as an effective first line of defense for municipalities in fending off commercial tax appeals. It is imperative that commercial property owners or taxpayers respond to proper Chapter 91 requests in order to avoid this harsh penalty of dismissal.
For more on Chapter 91 cases please see:
No Landlord-Tenant Relationship Means No Dismissal Under Chapter 91
Two More Taxpayers Victims of Chapter 91 “Litigation Gamesmanship”
To Wield Chapter 91 Sword to Dismiss Tax Appeals Towns Must Play by the Rules
Property Owner’s “False” Responses Lead to Dismissal of Tax Appeal
Property owner survives Verona’s “Chapter 91″ attack
Chapter 91 Strikes Another Taxpayer
Tax Court Denies Phillipsburg’s Chapter 91 Motion to Dismiss
