Gabriel Ades v. Borough of Deal

CourtNew Jersey Tax Court
DecidedJanuary 24, 2025
Docket07334-2024 - GABRIEL ADES V. BOROUGH OF DEAL
StatusPublished

This text of Gabriel Ades v. Borough of Deal (Gabriel Ades v. Borough of Deal) is published on Counsel Stack Legal Research, covering New Jersey Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gabriel Ades v. Borough of Deal, (N.J. Super. Ct. 2025).

Opinion

TAX COURT OF NEW JERSEY

TAX COURT MANAGEMENT OFFICE P.O. Box 972 (609) 815-2922 TRENTON, NJ 08625-0972

Corrected Opinion Notice

January 29, 2025

Chad E. Wolf, Esq. Paul V. Fernicola, Esq.

From: Lynne E. Allsop

Re: GABRIEL ADES V. BOROUGH OF DEAL Docket number: 007334-2024

The attached corrected opinion replaces the version released on January 24, 2025.

The opinion has been corrected as noted below:

Page 3, last line of paragraph – “a cause of action for” added; Page 9, footnote 5, “Borough of” added to citation; Page 11, first paragraph, second line - “taxpayer’s and the taxing district’s complaints” added; Page 14, first paragraph, line 4 changed to read - “It is equally illogical to”; Page 15, first paragraph, lines 14, 15, 16 changed to read – “the “taxable value of the entire property,” then on appeal, the county board of taxation’s value determination, embodied in its final judgment,”. NOT FOR PUBLICATION WITHOUT APPROVAL OF THE TAX COURT COMMITTEE ON OPINIONS Opinion corrected 1/28/25 – pg. 3, para. 1, last line; pg. 9, footnote 5, citation; pg. 11, para. 1, line 2; pg. 14, para. 1, line 4; pg. 15, para. 1, lines 14, 15, 16. _______________________________ GABRIEL ADES, : TAX COURT OF NEW JERSEY : Plaintiff, : DOCKET NO. 007334-2024 : v. : : Approved for Publication BOROUGH OF DEAL, : In the New Jersey : Tax Court Reports Defendant. : _______________________________:

Decided: January 24, 2025

Chad E. Wolf for plaintiff (Wolf Vespasiano LLC, attorneys).

Paul V. Fernicola for defendant (Fernicola & Associates, LLC, attorneys).

SUNDAR, P.J.T.C.

This opinion decides plaintiff’s application seeking to “freeze” the assessment

for tax year 2023 and apply the same to tax year 2024. The 2023 assessment

comprised of the initial original assessment allocated all to land, and a subsequent

added assessment for improvements. The added assessment was the subject of a

final judgment of the Monmouth County Board of Taxation. The court agrees with

defendant that the final judgment was not one which determined value, hence, it was

coded 2B (presumption of correctness not overturned), therefore, it cannot qualify as a base year for purposes of the Freeze Act. The court accordingly denies

plaintiff’s Freeze Act application.

FACTS AND PROCEDURAL HISTORY

For tax year 2023, defendant, the Borough of Deal (“Borough”), assessed

plaintiff’s property, identified as Block 81, Lot 1 (“Subject”) at $5,193,800. The

entire amount was allocated to land (thus, the allocation to improvements was $0).

Subsequently, the Borough imposed an added assessment for tax year 2023 in

an amount of $5,297,000, allocated entirely to improvements. It was prorated for

five months ($2,207,083).

Plaintiff timely challenged the added assessment to the Monmouth County

Board of Taxation (“County Board”). By judgment dated December 14, 2023

(mailed to plaintiff on December 18, 2023), the County Board did not change the

added assessment amount. The “Judgment” column of the document reflected $0

on the line for “Land,” $5,297,000 on the line for “Improvement,” and $2,207,083

on the line for “Prorated Amount.” The County Board used judgment Code 2B,

which stands for “presumption of correctness not overturned.” Plaintiff did not

appeal this judgment to the Tax Court; thus, it was final.

On May 6, 2024, plaintiff filed a form valuation complaint to this court, noting

on paragraph 2 therein that he was challenging the action of the Monmouth County

Board, “on grounds that the” assessment is “in excess of the true or assessable value

2 of the property,” and asked for a reduction of the same. The Case Information

Statement (“CIS”) accompanying the complaint listed the case type as “other,” the

“assessment year in contest” as 2024, the original assessment for this tax year as

$10,490,800, and the same amount as the “County Tax Board assessment.”

However, the 2024 assessment was $12,180,700 (allocated $6,094,800 to land and

$6,085,900 to improvements). Nowhere in the complaint or the CIS was there any

mention of a cause of action for relief under the Freeze Act.

The Borough then moved to dismiss the complaint as untimely filed. In

response, plaintiff stated that he had filed the form valuation complaint solely

“because the Tax Court requires a complaint and docket number to process freeze

motions based on county board judgments.” 1 Since the filing deadlines do not apply

to Freeze Act cases, and since he had “no intention of proceeding with a chapter 123

claim” as to the 2024 assessment, plaintiff asked the court to deny the motion.

Simultaneously, plaintiff filed a motion for relief under the Freeze Act asking

that the 2024 assessment be “based on the 2023 original assessment and the 2023

added assessment judgment from the” County Board, i.e., at $10,490,800.

At the hearing on both motions, it was reiterated on the record that plaintiff

had no intention of appealing the 2024 assessment. Therefore, the court, on its own,

1 Tax Court form CN 10340 captioned “Application for Judgment Pursuant to N.J.S.A. 54:3-26 (County Board Judgment Freeze Act),” can be used for seeking Freeze Act relief, and when filed will be assigned with a docket number. 3 and for purposes of efficiency, (1) deemed/converted the complaint into a Freeze

Act application for tax year 2024 based on the 2023 County Board judgment; (2)

directed plaintiff to file the correct form in this regard; (3) treated plaintiff’s legal

pleadings in support of his motion for Freeze Act relief as part of a form Freeze Act

application; and (4) provided additional time for the Borough to respond to the

plaintiff’s Freeze Act application and for plaintiff to reply to the same.

Plaintiff promptly filed the form Freeze Act application as directed by the

court. See n.1. In response, the Borough first filed an “Answer Objecting to

Application for Judgment Pursuant to N.J.S.A. 54:3-26 (County Board Judgment

Freeze Act).” In numbered paragraphs, the document stated that since plaintiff failed

to “present sufficient competent and credible evidence to overcome presumption of

correctness before the” County Board, it entered a judgment coded 2B, which

plaintiff did not appeal. Such final judgments, the Borough stated, do “not qualify

as a judgment of value to trigger the benefits of the Freeze Act,” therefore, asked the

court to deny plaintiff’s Freeze Act application. 2 It then filed a letter brief as its

formal opposition to plaintiff’s Freeze Act application.

2 The first paragraph of the Borough’s “Answer” stated that “it is the municipality shown on the attached information schedule which is made part of this Counterclaim,” and ended the Answer asking for a dismissal of “Plaintiff’s Application for Judgment Pursuant to N.J.S.A. 54:3-26.” The last statement of the Answer was the Borough’s attorney certifying “that the within Counterclaim was filed within the time period prescribed by the Rules of the Court.” However, there was/were no allegation(s) as to a counterclaim, there was no attached CIS, and the 4 Plaintiff filed a reply brief, contending among others, that his petition as to

the 2023 added assessment was fully tried at the County Board with plaintiff’s

evidence of value comprising of an appraisal report and the appraiser’s testimony,

and the Borough’s evidence comprising of three comparable sales.

ANALYSIS

Final judgments of a county board of taxation qualify for application of the

Freeze Act. N.J.S.A.

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Gabriel Ades v. Borough of Deal, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gabriel-ades-v-borough-of-deal-njtaxct-2025.