Success in Property Tax Appeal on Environmentally Contaminated Property

Success in Property Tax Appeal on Environmentally Contaminated Property

Lyndhurst, NJ – August 3, 2016 – The Scarinci Hollenbeck Environmental & Land Use Law Group announced that it recently concluded a successful settlement of a New Jersey Tax Court property tax appeal with the Borough of Carlstadt, New Jersey to reduce the property tax assessment of an environmentally contaminated property undergoing environmental remediation.  The property tax assessment reductions were the following for the five tax years in contest: $943,300 reductions for tax years 2011 and 2012, $1,972,000 reductions for tax years 2013, 2014, and 2015 and $2,220,000 reduction for tax year 2016.  The settlement also provided that the property tax assessment for future years 2017-2023 will be $100,000 until environmental remediation is completed and the property is available for development and/or occupancy prior to 2023.

These property tax assessments were based upon a developing body of case law in the New Jersey Tax Court which considered the effect of environmental contamination on property tax valuation, including the New Jersey Tax Court’s decisions in Methode Electronics, Inc. v. Township of Willingboro, 28 N.J. Tax 298 (Tax 2015), and Metuchen I, LLC v. Borough of Metuchen, 21 N.J. Tax 283 (Tax 2004).

“These cases provide opportunities for the owners of environmentally contaminated properties undergoing remediation to seek reductions in their property tax assessments through the filing of property tax appeals based upon the developing New Jersey Tax Court law,” said John Scagnelli, Partner and Chair of the firm’s Environmental and Land Use Group.

About John Scagnelli:
John M. Scagnelli’s environmental law practice encompasses the entire environmental law field, including environmental compliance, environmental litigation, environmental auditing, environmental permitting and environmental counseling. He serves as environmental counsel for banks and lending institutions, commercial and industrial companies, states and municipalities, real estate development organizations, and other organizations. His environmental work includes remediation projects and litigation relating to state environmental statutes.

About the Scarinci Hollenbeck Environmental and Land Use Litigation Group:
Scarinci Hollenbeck’s environmental and land use attorneys have significant experience in representing clients in environmental lawsuits in federal and state courts and in proceedings before administrative agency tribunals. They are proficient at handing broad spectrum of environmental contamination and toxic tort claims, including remediation and litigation under the Resource Conservation and Recovery Act (RCRA), the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or Superfund) and the New Jersey Spill Compensation and Control Act. They have been involved in the development/redevelopment of industrial and commercial properties, brownfields redevelopment and energy and transportation infrastructure projects in New Jersey and throughout the New York Metropolitan area. Our clients, coming to us from a broad range of industry groups, rely on our attorneys to provide them with innovative and strategic solutions to their most pressing environmental and land use issues.

F0r more information on “New Opportunities for Reducing Property Tax Assessments of Environmentally Contaminated Properties” see our CLIENT ALERT.