The NJ Tax Court is questioning the validity of the basis of some Tax-Exempt properties- OCTOBER 1ST IS THE CRITICAL DATE FOR TAX EXEMPTION!

http://www.njnonprofits.org/AmicusBriefFiled_PrincetonU.html

Property Tax Challenge
Center Files Second Amicus Brief in Princeton Property Tax Exemption Case
Updated January 12, 2016
On January 5, 2016, the Superior Court of New Jersey, Appellate Division, denied Princeton University's motion to appeal of a ruling regarding the burden of proof in the Fields vs. Trustees of Princeton University property tax exemption case.  In December 2015, the Center for Non-Profits, represented by pro bono counsel Lowenstein Sandler LLP and joined by five other organizations, filed an amicus (friend of the court) brief in support of a motion filed by Princeton University in the challenge to its property tax exemption, a case now making its way through the courts that could have implications for many non-profits in New Jersey.
Although the Court granted the Center's request to join as friends of the court in the most recent filing, it more importantly denied the University’s motion to appeal, which means that the burden is still on the University to (re)prove its property tax exemption as the case goes to trial.
The University's most recent appeal was filed in response to Tax Court Judge Vito Bianco’s November 5, 2015, ruling that the University has the burden of re-proving its property tax exemption in response to the residents’ challenge, even if it has been deemed by the municipal tax assessor to be tax exempt.  The Center is deeply concerned that this standard, which appears to have little substantiation in existing case law, would make all non-profit property owners highly vulnerable to challenges from disgruntled residents that would be extremely costly and time consuming to defend, siphoning scarce resources away from their charitable programs. The Center was joined in this brief by the Alliance for the Betterment of Citizens with Disabilities; Eva’s Village; New Jersey Association of Community Providers; New Jersey Association of Mental Health and Addiction Agencies; and Volunteers of America Delaware Valley.
Background
In Fields v. Trustees of Princeton University, a case attracting national attention, four Princeton residents are seeking to revoke the entire property tax exemption of Princeton University based on a far-reaching set of grounds, including the University’s investments; the payment of patent royalties to some of its faculty pursuant to federal statute; and certain fee-based operations such as cafés.
Since 2001, New Jersey law has provided for a prorated property tax exemption structure under which a property owned by a charitable organization that is used for mixed purposes, both charitable and non-charitable, is only subject to tax on the non-charitable portion.  Yet the plaintiffs in the Princeton case are seeking to revoke the University’s property tax exemption in its entirety based on allegations surrounding some of the University’s properties, without regard to their proportion in relation to the University’s mission or other exempt functions.  Unlike many of the other property tax challenges across the nation, in this case the municipality is named as a co-defendant.
- See more at: http://www.njnonprofits.org/AmicusBriefFiled_PrincetonU.html#sthash.KcHDguEG.dpuf