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April 11, 2013

Verizon Business Personal Property Tax Matter Lingers Denying More Municipalities More Relief Each Year

Dear Mayor:

Please urge your State Legislators to support our efforts to restore and protect vital municipal property tax relief funding. Posted on our website, you will find a SAMPLE RESOLUTION IN SUPPORT OF A-3393/S2324, LEGISLATION TO PROTECT RESIDENTIAL PROPERTY TAXPAYERS FROM THE LOSS OF TELECOMMUNICATIONS TAX SUPPORT.

Consider adapting this resolution as a letter to your State Senator and your Assembly people.

As indicated in our January 16 letter ( the New Jersey Supreme Court has decided not to hear an appeal in a matter that will cost over 100 municipalities over $8 million in 2013, and which will cost more and more municipalities, more and more millions, with each passing year.

At that time, we stated that, unless the Legislature confronted this issue, remand of the case to the Tax Court would delay relief for New Jersey property taxpayers for years. In fact, the July 2013 Tax Court trial date has been adjourned without date. Discovery will extend until the early months of 2014. A trial date will be scheduled thereafter.

The case, Verizon v. Hopewell, in which the League supported Hopewell as amicus curiae, involved Verizon’s claimed exemption from the Business Personal Property Tax (BPPT) in any municipality where the corporation unilaterally determines, in any given year, that it no longer supplies dial tone and access to at least 51% of the local telephone exchanges. Verizon’s claim had been rejected by the Mercer County Board of Taxation in 2009. The Tax Court reversed that ruling and awarded Verizon the exemption, pending further Tax Court litigation.

Now more than ever, municipalities need to unite behind A-3393 and S-2324. As noted in our October 17 letter (, this legislation will provide better direction to the courts regarding the legislature’s intent to protect residential property taxpayers, when laws regarding State taxation of telecommunications providers were reformed in 1997.

The League of Municipalities commends Assemblymen Ralph Caputo and Reed Gusciora and Senators Bob Smith, Linda Greenstein and Shirley Turner for their sponsorship of these bills. We strongly support A-3393 and S-2324, which would clarify the law regarding payments of business personal property taxes by any local exchange telephone companies that, in 1997, served 51% of a municipality’s residents.

A-3393 has been referred to the Assembly Telecommunications and Utilities Committee, chaired by Assemblyman Chivukula. S-2324 is in the Senate Community and Urban Affairs Committee, chaired by Senator Van Drew. We have contacted the respective Chairs and asked for expeditious action on this matter. Please add your voices to ours.

Also, please contact your State legislators and urge them to support this clarification of the law. If you have any questions, contact Jon Moran at 609-695-3481, ext. 121 or

Very truly yours,

Brian Wahler
Mayor Piscataway
Member, NJLM Exec. Board
Chair, NJLM Telecommunications Study Committee

William G. Dressel, Jr.
Executive Director




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