Gusciora Bill to Prevent Eating Club From Enjoying Free Meals Advances

GUSCIORA BILL TO PREVENT EATING CLUB FROM ENJOYING TAX FREE MEALS ADVANCES

Measure Would Thwart Princeton University's 'Cottage Club' Eating Club Attempts To Abuse NJ Property Tax Exemption Laws

(TRENTON) - Legislation Assemblyman Reed Gusciora sponsored to prevent an exclusive Princeton University social fraternity - the Cottage Club - from abusing New Jersey historic preservation laws in order to qualify for a property tax exemption status today passed the full Assembly.

"The Cottage Club's only goal in gaining historic property status is to spare it from paying property taxes," said Gusciora (D-Mercer).  "The club should not be handed a free meal at the expense of other Princeton property taxpayers."

The Cottage Club's house on Prospect Street in Princeton Borough was entered into the New Jersey Register of Historic Places in September 1999.  However, the club largely remains a private organization, open only to current Princeton University members, alumni, and invited guests all but 12 days out of the year.

A May 30 New Jersey Supreme Court decision awarded the Cottage Club historic property status, which also carries with it the potential to receive a property tax exemption.  If left unaddressed, Princeton Borough could owe the club tax refunds of more than $300,000 and would stand to lose at least $50,000 a year in property tax revenue.

Gusciora's measure (A-4126) would enhance a 2004 law he authored meant to keep the private Cottage Club from receiving the benefits of being considered a public historic site.

Specifically, the bill would clarify the Legislature's intent with respect to the 2004 law concerning real property tax exemptions for historic sites, amending the law to require it to apply to any historic site that applied or qualified for historic site property tax exemption after July 1, 1999.  Any property tax exemption granted after this date that does not comply with the 2004 act would be rendered null and void.

The measure also would strip the state Department of Environmental Protection's (DEP) authority to designate historic sites, transferring that power to the state Division of Taxation.  Each year, municipal tax assessors would be required to report to the division, certifying that any historic sites that had previously qualified for tax exemptions continue to meet all of the qualifications.  To fund this service, each historic site would be assessed a $50 annual fee.

"Allowing the Cottage Club historic property status abuses the spirit of that designation, as the club is largely a private organization," said Gusciora.  "It would be grossly unfair for the residents of Princeton to see their tax bills rise simply because a private affiliated entity wants to be taken off the tax rolls."

The Assembly released the measure 59 to 18 with three abstentions.  The bill goes to the Senate where it was scheduled for a final floor voter later in the day.

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