Golf Course On Government Land Operated By Private Entity Was ExemptAugust 5, 2019

The New Jersey Tax Court has ruled that a golf course on government land that was operated by a for-profit entity was exempt from property taxes. The court ruled that statutory and regulatory guidelines specifically authorize the Department of Environmental Protection to operate golf courses for recreational purposes and to allow for operation of its facilities for private profit.

While the township challenged the exemption of the restaurant that was adjacent to the golf course, the court held that the restaurant was an amenity provided to ensure the success of the golf course.

The court also rejected the township’s argument that because the agreement between the operator and DEP required the for-profit entity to pay all taxes assessed, if applicable, the operator was precluded from applying for a tax exemption.

(NJ DEP/UFT and Cream Ridge Golf LLC v. Township of Upper Freehold, N.J. Tax Ct., Dkt. No. 007457-2017, 07/26/2019.)