Ho-Ho-Kus June 23, 2010 THE VILLADOM TIMES III • Page 3 County hears railroad club’s tax appeal case by Jennifer Crusco The Ramapo Valley Railroad Club, which leases the Veterans of Foreign Wars building at 620 Post Street in HoHo-Kus, has been asked to pay 2010 taxes on the portion of the building the club uses, and has filed an appeal. Ho-Ho-Kus Borough Attorney David Bole, who is representing the borough in this matter, confirmed that the Bergen County Board of Taxation heard the case on June 10, but has reserved decision. Bole said the board could issue a ruling in 30 to 45 days. During the three-hour hearing, the board heard testimony from the railroad club’s representatives and from Ho-Ho-Kus Tax Assessor Marie Merolla. Attorney Steve Irwin is representing the club in this matter. The club members believe their organization qualifies for a tax exemption, asserting that the club enhances education, is open to the public, and holds annual Open House events. Between 2005 and 2009, Bole said the assessor found that the club’s use of the building had expanded. Merolla assessed the portion of the building being used by the club, and that bill touched off the appeal. The borough’s position is that the club is engaged in a hobby, rather than education, and that the club may open its displays to the public, but does so on an intermittent basis. Late last year, Merolla advised Ho-Ho-Kus 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 Fundraising begins for racetrack signs A newly established group known as the Ho-ho-Kus Historic Committee is now accepting donations to be used to purchase three 16” by 12” signs that will memorialize the location of the borough’s old race track. Plans promoted by Nancy and Kevin Pianfetti, who reside on part of the old track, call for two signs to be installed on Arbor Drive, and a third sign on Bernard Place. Last week, Kevin Pianfetti approached the Ho-Ho-Kus Council with Ho-Ho-Kus Borough Historian John Hanlon to provide an update on the project. Pianfetti said the three signs will cost approximately $600 each. The original plan to have a local Eagle Scout candidate construct a wooden sign has fallen through, he said, since the project would not take the prospective Eagle the 100 hours an officially sanctioned community service project requires. Pianfetti also provided the council with proposed sign verbiage, which states: “Site of Historic Ho-Ho-Kus Race Track 1867-1938. This 23 acre site originally housed ‘one of the most famous sprint car tracks on the East Coast’ originally named the Ho-Ho-Kus Speedway. During its existence, this site was home to the Bergen County Fair, horse racing, trotters, auto and motorcycle racing, two major movies, polo events and countless New Jersey-New York Fireman Association’s events. Prior to World War I, this site became the training ground for what is now known as the New Jersey National Guard, as well as the home of the French Army’s collection of horses and mules. Horses were herded from the current train station down Franklin Turnpike to this site. Several buildings suffered fires over the years, but they were always rebuilt and ready for racing and other activities by the Memorial Day weekend’s big (continued on page 21) 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 is $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. The tax bill is approximately $2,000. Earlier this year, David M. Watkins, the attorney for the Ramapo Valley Railroad Club, 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.” In response, Merolla 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 non-exempt tenant the lessee has the leasehold estate, and is listed as the owner, even though they do not actually own the property. (N.J.S.A. 54:4-2.3). As the leasehold owner, they are responsible for their portion of the real estate taxes.” Merolla added that she believes the state laws and regulations supersede the lease “as the law specifically addresses (continued on page 16) RR Silone, cousin of Italian author Ignazio Si- Now Open! 396 Franklin Ave Wyckoff, NJ 201-891-5500 Across from Aldo’s Restaurant Wyckoff Cycle LLC lone, has published his first novel, “Rock and Roll Love Story”; a rambling, Beat-style tale of a wannabe rock star from New Jersey as he struggles for mental health and love in the downsized economy of 1978. Leafstoan.blogspot.com or Buy at Amazon.com or Barnes&Noble.com. We Repair ALL Bicycle Brands Bikes for the Whole Family and the Pros Builds Up Your • Stamina • Courage • Confidence • And mike/janine 6-23-10also releases stress (ages 16 & up) COMPREHENSIVE KOREAN MARTIAL ARTS 6-16-10 janine LawnProKevinKretz2x2(6-16-10) 2 x 2” RR_Silone2x2(6-23-10) 2 x 2” Rev2 1 Month Trial Course $ 99 CALL NOW! 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