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The Asbury Park West Side Community Center [WSCC] has lost its 2016 tax appeal case against the city.

The 75-year-old embattled organization, once a hub for community activities, challenged the municipal tax assessment by maintaining it fell under the purview of a tax exemption status.

But State Tax Judge Mala Sundar said in a Feb. 27 decision that the organization failed to pass a three prong tax exemption barometer established in the 1984 Papermill Playhouse v Milburn case.

“First, the claimant must be organized exclusively for the statutorily stated purpose,” she wrote. “Second, the property must be actually used for the tax-exempt purposes. Third, the operation and use of its property must not be conducted for profit.

Sundar said while the WSCC proved its intent to operate as a nonprofit community center, it failed to show proof that its operation and uses were not done for profit. She noted that no bank statements or other details were submitted.

Sundar also noted that no records were provided for the weddings and receptions rentals that took place in the gym, a parcel that actually fell on the city’s ownership registry until the matter of a previous city owned tax lien was closed in 2017.

“No bank or other financial statement was provided to show income from these events,” she said.

Also called into question was a private business’ use dating back to 2014 in exchange for a non paid building management role. Sundar noted that while the individual became an official volunteer in 2016, the agreement did not constitute a tax exemption.

In total, the WSCC properties in question include a three-story building with an adjacent  gymnasium and two vacant lots. Because of the aforementioned tax lien (sparked in 1996) their tax obligation for the three story building was reduced from $876,900 to a $301,400 assessment. They were also off the hook for a $41,600 assessment for one of the two vacant lots since that too fell under the unclosed city lien.

Sundar’s decision affirms three previous tax appeals that were decided at the county level. WSCC also has two pending tax appeal cases for 2017 and 2018, Tax Assessor Erick Aguiar said. 

“The judge’s decision is justice for the taxpayers in the city who were effectively being asked to subsidize a property that is not truly entitled to the tax exemption, Aguiar said. “I am hopeful that this decision puts the whole case to rest and the WSCC appropriately withdraws the open cases for 2017 and 2018 tax years. The taxpayers should not have to endure the expenses of the legal defense any longer.”

WSCC Board President and Executive Director Lori Ross, who could not be reached for comment at the time of this publication, has said it is the Board’s goal to save the failing institution.

“We have had many tax liens and we have always satisfied them,” she said in a December interview. “I understand the community’s desire to see the West Side Community Center flourish and we are looking for folks who would step up and help.”

City Manager Michael Capabianco said WSCC will be given an opportunity to pay off the outstanding taxes on the property’s $349,000 assessment before any action is taken by the municipality.

“The city does own the lien so we would have to investigate our legal options if they fail to pay the monies due,” Capabianco said.

Click here to read Sundar’s decision in full.

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