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Thursday, December 20, 2007
Schneck Holtzman was successful in completely removing $2.2 million in property taxes from property managed by United Communities LLC.
United Communities, a private company, entered into a fifty-year lease with McGuire Air Force Base and Fort Dix last summer in order to maintain and operate base housing units located on each respective entity’s property. The township’s assessor, after learning of this lease, levied a $2,215,013 added assessment on United Communities leasehold interest in the housing units. Schneck Holtzman was successful in reducing this entire $2.2 million tax bill to $0.
Under federal law, a state or its instrumentalities may not impose a tax on real or personal property located on lands over which the federal government has properly obtained, and continues to maintain, exclusive jurisdiction in full compliance with the Enclave Clause. The base housing on McGuire Air Force Base and Fort Dix continue to be under exclusive federal jurisdiction. Any taxation of the subject premises is therefore a direct violation of federal law. The sole purpose of the lease entered into in this instance is “for demolition, design, construction, renovation, operation and maintenance of a rental housing development . . . for use by military personal and their dependents authorized to live on McGuire AFB and Fort Dix.” If at anytime, the rental housing unit is “not actively and continuously used for a Government Accepted Use at any time during the Lease Term . . . [the leased property] shall revert to the Government.” Moreover, the lease, after fifty-years will revert back to the government, irrespective of any use of the subject property. The U.S. Government has retained exclusive federal jurisdiction over the subject premises and any taxation of the leased premises directly violates the Federal Enclave Clause.
On December 17th the County Board of Taxation agreed with Schneck Holtzman and removed the entire $2.2 million added assessment.
United Communities, a private company, entered into a fifty-year lease with McGuire Air Force Base and Fort Dix last summer in order to maintain and operate base housing units located on each respective entity’s property. The township’s assessor, after learning of this lease, levied a $2,215,013 added assessment on United Communities leasehold interest in the housing units. Schneck Holtzman was successful in reducing this entire $2.2 million tax bill to $0.
Under federal law, a state or its instrumentalities may not impose a tax on real or personal property located on lands over which the federal government has properly obtained, and continues to maintain, exclusive jurisdiction in full compliance with the Enclave Clause. The base housing on McGuire Air Force Base and Fort Dix continue to be under exclusive federal jurisdiction. Any taxation of the subject premises is therefore a direct violation of federal law. The sole purpose of the lease entered into in this instance is “for demolition, design, construction, renovation, operation and maintenance of a rental housing development . . . for use by military personal and their dependents authorized to live on McGuire AFB and Fort Dix.” If at anytime, the rental housing unit is “not actively and continuously used for a Government Accepted Use at any time during the Lease Term . . . [the leased property] shall revert to the Government.” Moreover, the lease, after fifty-years will revert back to the government, irrespective of any use of the subject property. The U.S. Government has retained exclusive federal jurisdiction over the subject premises and any taxation of the leased premises directly violates the Federal Enclave Clause.
On December 17th the County Board of Taxation agreed with Schneck Holtzman and removed the entire $2.2 million added assessment.
Labels: Schneck Holtzman Success Story
