Tax Court: NJ DEP/UFT c/o Cream Ridge Golf, LLC v. Twp of Upper FreeholdDocket No. 007457-2017; opinion by Gilmore, J.T.C., decided July 26, 2019. For plaintiff Cream Ridge Golf, LLC – Katherine B. Galdieri (The Kelly Firm, PC, attorneys); for plaintiff NJ DEP/UFT – Jamie M. Zug (Gurbir S. Grewal, Attorney General of New Jersey, attorney); for defendant – Dennis Anthony Collins (Collins, Vella and Casello, LLC, attorneys).
For-profit taxpayer/operator of State-owned golf course sought exemption from local property taxes for the subject property, which includes a golf course, pro shop, driving range, restaurant, and maintenance buildings. NJ DEP/UFT joined action in support of exemption. Taxpayer moved for summary judgment and the defendant, Township of Upper Freehold opposed. Held: Operation of State-owned golf course by for-profit entity furthers public purpose of development of lands by the State for recreational purposes. Operation of restaurant by for-profit entity on State-owned property supports primary recreational purpose of the subject property. Requirement under RFP, operation agreement, and lease agreement for payment of property taxes does not preclude application of local property exemption. Application for local property tax exemption subsequent to NJ DEP/UFT’s RFP procedure and entering into operation agreement is not in violation of public bidding laws or the square corners doctrine. The subject property qualifies for local property tax exemption under N.J.S.A. 54:4-3.3, 2.3, and 1.10.