Municpal Reimbursement

Started by PaulM • 2 replies • 1617 views

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PaulM (Pennsylvania)
Posts: 1,347

Posted:

Help! for associations who are being taxed twice!
In Dec. 2006 Gerald spoke of the Municipal Services Act or Kelly Act of New Jersey in which a municipality must reimburse an association for the costs incurred by the assn. for snow removal, lighting, elec., etc.--those services normally offered a taxpaper and resident, but not to communities.
Can anyone else shed some light on how we can band together with other communities in the township/county to try to get some legislation passed in PA?
We are aware we would need to seek legal counsel, but we need to have a point of reference from which to build.
To Gerald: I cannot access the site you gave previously,
www.njlawblog.com Is this an actual site for public view, or is it a blog for members? Thanks.
Where can I find info?
PaulM

LanceT (Alabama)
Posts: 121

Posted:

How are you being taxed twice? Not too clear on that. What it sounds like is that if an association spends it's own money on clearing their roads during the winter months WITHOUT using the city's equipment, then the City must reimburse the Association these costs. How's that tax?
In our HOA and many others, the property is considered "Private" but the streets are considered "public". That means the streets are cared for by the city which uses OUR tax money to maintain. If your city doesn't do the work that your taxes paid for, then they (in this case) reimburse your HOA the difference. I don't see that paying extra taxes. You don't pay taxes to the HOA. The HOA doesn't pay taxes to the city. The individual homeowner's pay city taxes.

Recovering Ex-President of a HOA

JoeW1 (New York)
Posts: 728

Posted:

A quick search on Google for nj municipal services act pulled up the link below.

http://www.njlawblog.com/community-associations-is-your-association-receiving-the-benefits-of-the-municipal-services-act.html

Pursuant to the Municipal Services Act, N.J.S.A. 40:67-23.2 to -23.8, every municipality in New Jersey is required to either provide certain services to each qualified private community within its borders or reimburse the community for these services, including the removal of snow, collection of trash or recyclables or lighting of roads and streets. The purpose of the Municipal Services Act is simple – eliminate double taxation of community association residents.

The legislative intent of the Act was to “help eliminate double payment for some services which the residents of qualified private communities now pay through property taxes and fees to their association.”

Lance, the services of snow removal are already built into your taxes, right? So if the town does not reimburse your HOA for snow removal the minute you pull out of your driveway and your tires hit the roadway in your HOA, you are being double taxes. The HOA's in New Jersey apparently did it, stands to reason that every HOA or COA in America should as well.

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