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Amicable Resolution to Regional School Aid Formula Saves Carlstadt's Residents Over a Million Dollars

Amicable Resolution to Regional School Aid Formula Saves Carlstadt's Residents Over a Million Dollars

A recent settlement between the State of New Jersey Division of Taxation, Becton Regional School Board, the Borough of East Rutherford and the Borough of Carlstadt prevented a manifest injustice.  The Borough of Carlstadt sought to invalidate the State of New Jersey’s State School Aid Formula, which is used to determine school funding allocations to regional high schools.  In determining the Borough of Carlstadt regional school board obligation for the 2018-2019 budget, the State Division of Taxation had included a questionable commercial sale in its formula.  The sale involved a commercial warehouse that was purchased for a price far above the municipal property assessment.  The disparity between the sales price and the municipal assessment lies the problem.  If this one sale was used in the State funding allocation for the Becton Regional High School, the Borough of Carlstadt would have been required to pay one million dollars over last year’s contribution to equalize the outlier commercial sale.  Kenneth A. Porro, Esq. of Chasan Lamparello Mallon & Cappuzzo, PC was successful in presenting the Borough’s arguments before the State Tax Court and the related governmental parties as to why the one outlier commercial sale should not be included in the State of New Jersey Director of Taxation 2018-2019 ratio formula.  The inclusion would have caused an unfair allocation of the school funding.   By doing so, Mr. Porro, along with the assistance of the Court and the parties, was able to negotiate a resolution that saved the residents of the Borough of Carlstadt over a million dollars.

For more information please visit https://www.northjersey.com/story/news/bergen/carlstadt/2018/08/20/carlstadt-nj-settles-suit-over-states-tax-miscalculation/1041796002/