Tax Court: One Main St Edgewater, LLC c/o Nat’l Re/ v. Edgewater Borough; Docket Nos. 000444-2026; 000445-2026, opinion by Raffetto, J.T.C., decided April _27__, 2026.
For plaintiff – Gregory J. Hazley (DeCotiis, FitzPatrick, Cole & Giblin, LLP, attorneys);
For defendant – Robert P. Travers (Robert P. Travers Law, LLC, attorney).
HELD: Plaintiff filed complaints challenging the property classification under N.J.A.C. 18:12-2.2 of two properties as part of the 2026 tax list. Each property comprises a six-story mixed-use building containing commercial uses on the ground level and residential apartments on the floors above. Each property was classified as Class 4A “Commercial Property” on the tax list. The current property classification regulations do not contemplate mixed-use properties. Plaintiff asserted that its properties should be reclassified from 4A to Class 4C “Apartments” given that the predominant use of each parcel is multi-family residential apartments and moved for summary judgment in each case. The properties are currently under contract to be sold. The proposed reclassification would exempt the properties from payment of the additional realty transfer fee, commonly known as the “mansion tax,” under N.J.S.A. 46:15-7.2 at the time of transfer of each parcel.
The Court determined that the Tax Court is vested with jurisdiction to resolve property classification appeals that do not relate to the quantum of the local property tax assessment. The Court also found that, absent the enactment of statutory revisions by the Legislature or the adoption of further regulations by the Director of the Division of Taxation, a predominant use test is the appropriate standard for determining the classification of mixed-use properties. Based upon the undisputed facts presented, the court held that both properties should be reclassified from 4A to 4C.