DOUBLE TAXATION

The term 'double taxation' occurs when a unit owner must pay local taxes to township/borough PLUS a monthly assessment fee to cover maintenance services that the township/borough will not complete...due to the fact that
the streets are 'owned' by the community. This was determined between the developer and local gvt. prior to building. As I understand it, this is a normal perk for the township--to have the 'over 55 community' residents now contributing tax dollars to their coffers.

Therefore, we are paying taxes same as any other taxpayer in town who gets snow plowing and street lighting, etc. for their tax dollars; however, we are receiving 'nothing' --no services for our tax dollars.

Has any community out there successfully managed to have their local gvt. give a 'community tax rebate' or some kind of financial break?
How would we go about even inquiring of this?

From a post by JoeW1: 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.

Use the search feature and enter - Municpal Reimbursement (Their spelling not mine)

Hi Paul:

I'm in Oregon so what I write may not be applicable to you.

There are many HOA's here that have private streets. They are usually built narrower than the public streets, some of them have restrictions on parking on one or both sides so that the requirements of the Uniform Fire Code are met with regard to clearance for emergency vehicles. Oftentimes these developments have more lots because the developer put in narrower streets which allow more lots at larger sizes than if public streets were put in. Sometimes it's due to the zoning laws requiring a certain number of homes per acre. In all these cases, the HOA maintains the streets because they are private streets. Many of these are within townhome commmunities where the "private street" is basicaly a shared driveway access; this also happens in single-family developments as well.

One caveat: if the developer had put in public streets (wider) the developer's cost would have been greater, and there would have been less lots to sell - hence, the lots would have sold for more money. You pay the piper one way or another - in this case, you save on the cost of the home and pay the maintenance fees.

One way to find out about the possibility of rebates for services that you pay for, would be to get involved with your local CAI chapter. You can find the list at: http://www.caionline.org/about/aboutchap.cfm

J. Patrick Moore, CMCA