Villadom Times Weekly Newpaper Online-January 27, 2010 Issue

Ho-Ho-Kus January 27, 2010 THE VILLADOM TIMES III • Page 5 Railroad club asked to pay 2010 taxes on VFW building by Jennifer Crusco The Ramapo Valley Railroad Club, which leases the Veterans of Foreign Wars building at 620 Post Street in Ho-Ho-Kus, is being asked to pay 2010 taxes on the portion of the building the club uses. Back taxes are not being sought. Late last year, Ho-Ho-Kus Tax Assessor Marie Merolla advised VFW Post Commander Stanley Kober that she had reviewed the lease and property tax exemption forms and found that a change should be made on the VFW building’s tax exempt status. “The reason for this change is due to the lease with the Ramapo Valley Railroad Club and that the veterans have access for meetings only once per month and one week before Memorial Day. In addition, the property is being entirely (emphasis supplied) leased to the railroad club, with limited access to the veterans,” Merolla wrote. “Although the Ramapo Valley Railroad Club may be non-profit, it does not meet the statutory requirements for property tax exemption. “The law has set-up provisions for taxation in leasehold situations. In such cases, the exemption will be pro-rated for the percentage of usage for the veterans. That area will remain exempt and the veterans will not be billed for any taxes. The remaining portion will be taxable and payable by the lessee, the Ramapo Valley Railroad Club.” According to Merolla, the breakdown of the assessment on the exempt portion of the property would be $216,600 for the land and $45,200 for the improvement, while the taxable portion would be 0 for the land and $135,500 for the improvement. While the 2010 tax rate has yet to be established, Merolla told Villadom TIMES that, had the club paid the tax in 2009, the group would have been charged $1,953. She noted that the club has the right to appeal to the Bergen County Board of Taxation in Hackensack on or before April 1. David M. Watkins, the attorney for the Ramapo Valley Railroad Club, recently questioned why he had received a copy of Merolla’s letter to Kober regarding this situation. In a Jan. 6 letter to the assessor, Watkins said, “Under the terms of the lease agreement between the parties, my client is not obligated to pay any real estate taxes. If there is an issue as far as assessing this property, that lies solely and exclusively with the landlord.” Merolla, responding to Watkins on Jan. 14, noted that the veterans own the building, which is being leased to the club. She indicated that the State of New Jersey permits a full tax exemption for veterans’ organizations that meet specific legal requirements, and allows these organizations to derive income without losing their exemption. “However, when the veteran organization property is leased to a (continued on page 21) �� Announcing Nancy’s NEW Consignment Shop! “Dolphin’s Cove” at 365B FRANKLIN AVE, WYCKOFF DC Consignment Monday, March 1, 2010 Consignment by Appointment starting Monday, February 1st �� Grand Opening �� Accepting Men’s, Women’s & Children’s Clothing & Accessories All Styles • All Sizes • Vintage Welcome! 201-485-7178 • Mon-Sat 11am-7pm