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Monday, January 5, 2009
On December 31, 2008 the New Jersey Appellate Division affirmed Chabad of Randolph, Inc. v. Township of Randolph, a case that I have been deeply involved with as counsel for the plaintiff. As a result of this decision, a religious organization will not have to pay property taxes on the property used as a residence by the religious organization's rabbi.
This matter started on October 1, 2005, after the defendant, the Township of Randolph, denied the plaintiff, the Chabad of Randolph, a parsonage exemption for the residence occupied by the plaintiff's rabbi. The defendant denied plaintiff’s application due to alleged zoning violations and the belief that the plaintiff did not otherwise qualify for a parsonage exemption.
Subsequently, on appeal, the County Tax Board affirmed the defendant's decision to deny the plaintiff's parsonage exemption.
Afterwards, the plaintiff then appealed to the Tax Court of New Jersey where the Tax Court reversed the County Tax Board's decision. At trial, the Tax Court judge concluded that the plaintiff carried its burden of proving that the rabbi's Chabad-owned residence was entitled to a parsonage exemption under N.J.S.A. 54:4-3.6, which exempts from taxation "the buildings, not exceeding two, actually occupied as a parsonage by the officiating clergymen of any religious corporation of this State."
The defendant then appealed the Tax Court’s decision to the Appellate Division. On appeal, the Appellate Division agreed with the Tax Court entirely and held that: "The evidence overwhelmingly supports the conclusion that his residence is a 'parsonage' within the meaning of N.J.S.A. 54:4-3.6." As a result, the plaintiff will not have to pay any property taxes for the property used by the plaintiff’s rabbi as his residence.
To read the full Appellate Division decision, please click the words Property Tax Appeals.
This matter started on October 1, 2005, after the defendant, the Township of Randolph, denied the plaintiff, the Chabad of Randolph, a parsonage exemption for the residence occupied by the plaintiff's rabbi. The defendant denied plaintiff’s application due to alleged zoning violations and the belief that the plaintiff did not otherwise qualify for a parsonage exemption.
Subsequently, on appeal, the County Tax Board affirmed the defendant's decision to deny the plaintiff's parsonage exemption.
Afterwards, the plaintiff then appealed to the Tax Court of New Jersey where the Tax Court reversed the County Tax Board's decision. At trial, the Tax Court judge concluded that the plaintiff carried its burden of proving that the rabbi's Chabad-owned residence was entitled to a parsonage exemption under N.J.S.A. 54:4-3.6, which exempts from taxation "the buildings, not exceeding two, actually occupied as a parsonage by the officiating clergymen of any religious corporation of this State."
The defendant then appealed the Tax Court’s decision to the Appellate Division. On appeal, the Appellate Division agreed with the Tax Court entirely and held that: "The evidence overwhelmingly supports the conclusion that his residence is a 'parsonage' within the meaning of N.J.S.A. 54:4-3.6." As a result, the plaintiff will not have to pay any property taxes for the property used by the plaintiff’s rabbi as his residence.
To read the full Appellate Division decision, please click the words Property Tax Appeals.
