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August 21, 2009

Re:      Appellate Division Rules that an Assisted Living Facility need not provide Charity Care in order to qualify for a Real Property Tax Exemption

Dear Mayor:

The New Jersey Appellate Division has reversed the Tax Court, and decided that an assisted living facility does not have to provide charity care in order to qualify for a real estate tax exemption.  In Presbyterian Home at Pennington, Inc. v. The Borough of Pennington, the Appellate Division found no basis for requiring an assisted living facility, which provides to provide charity care, as the basis for the property tax exemption so long as the facility otherwise qualified for the tax exemption. 

The Court found that the taxpayer, in this case the assisted living facility, was organized for the purposes of an assisted living residence; that the property was actually and exclusively used for that purpose; and that its operations were not conducted for profit.

The Decision also reaffirmed established case law holding that Municipal Officials, other than Tax Assessors, have no authority to grant or promise a real estate tax exemption.  Promises of exemption made by elected officials are not binding upon a Municipality.

The Decision also confirmed a twenty five year old case that held that a Municipality is not entitled to impose an added assessment for newly constructed improvements on property qualified for a new exemption. 

To access this case, please go to: http://www.judiciary.state.nj.us./opinions/index.htm.

If you have any questions or concerns about this communication, please contact Martin Allen, League Associate Counsel, at 908-757-7800, ext. 191, or at mallen@newjerseylaw.net.

Very truly yours,

William G. Dressel, Jr.
Executive Director

 

 

 

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