New Jersey Supreme Court Grants Certification for Non-Profit Exemption Issue

by: Thomas Olson
13 Aug 2010

 The New Jersey Supreme has agreed to hear a property tax exemption case, where it will decide whether the International Schools Services, Inc., a non-profit organization, which aids and promotes independent educational associations, forfeited its local property tax exemption under N.J.S.A. 54:4-3.6 by using some of its reserves, staff, and property to subsidize its related for-profit entities.  The Tax Court found the property used by the organization did not qualify for the tax exemption because it was not actually used for the moral or mental improvement of the general public, and that it was operated for the purpose of making a profit.  The Appellate Division disagreed with Tax court’s holding, but found that the organization failed to satisfy the third statutory prong because the property was used to make a profit, and affirmed denial of the exemption.

 A copy of the Tax Court’s opinion can be found here

A copy of the Appellate Division’s opinion can be found here.   

Read the previous post on this case in our New Jersey Property Tax Law Blog.  

Stay tuned for the decision of the Supreme Court, which will likely schedule argument on the matter this fall. 

The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.