Renaud DeAppolonio LLC wins appeal
R|D Update • 6.30.20
Renaud DeAppolonio LLC successfully appealed to New Jersey Supreme Court on behalf of Union Township (Union County). The issue in the appeal was whether a high-end restaurant operated by a for-profit entity, but housed in a building on the Kean University campus, qualifies for exemption from local property taxation. On June 30, 2020, the Supreme Court unanimously held that the accomplishment of a public purpose must be the paramount factor in an arrangement with a private entity’s use of public property, and for a tax exemption to apply, any private advantage must be incidental or subordinate. The Supreme Court agreed with the Tax Court that the restaurant’s interest in the property was accordingly not tax exempt.