Developer Can’t Shift Taxes to Condo Unit Owners, NJ Court Rules

The developer of a 168-unit condominium project failed to convince the New Jersey Tax Court that it should be able to shift the expenses of unannexed phases to the owners of individual units.

The developer’s assertion that the unannexed phases are part of the community’s common elements is undercut by language of the master deed, the owner’s course of dealing, the policy behind Federal National Mortgage Association phasing, and Federal Housing Administration tax assessment provisions, Judge Mark Cimino wrote in an opinion posted Feb. 27.

• G.S. Realty Corp. developed the project in phases, and federal law prohibits it from shifting ...