EOWC Delinquency Costs Taxpayers

The East Orange Water Commission (EOWC) has owed $2,403,063 in property taxes on some 40 properties in Livingston since a 2009 reassessment, according to court records and confirmed by officials. A court in January affirmed the township's right to levy those taxes.

Livingston's Township Manager Michele Meade last week introduced a budget which includes a tax increase to the average homeowner of 5.7%, or $140.25. The increase is driven primarily by a tax delinquency from one taxpayer, the EOWC. The delinquency is so significant, according to Meade, that it alone will cost the average homeowner $101.51, a tax increase of 4.14%.

The 2008 assessment of the EOWC property is $2,013,500. Under another type of calculation, the assessment was $58,604,900 in 2009. For 2010, the assessment was $35,919,800. (The 2009 district-wide revaluation saw properties assessed at 100 percent of their value. In other years, they were assessed at around 12 percent.)

Court records show that the EOWC challenged assessments on their Livingston properties, but did not do so in a timely manner. In fact, the EOWC challenged 2009 assessments in December, 2010, according to court records.

EOWC representatives said this was due to incorrect mailing addresses on 32 of the 40 2009 assessment notices; the Tax Court in January rejected this argument.

Background information and court documents show that EOWC owns 40 properties, totalling 1,465 acres, in Livingston. 

From tax years 2008 through 2010, Livingston sent assessment notices, sometimes known as "Chapter 75" notices, to the EOWC at 99 Grove Street, East Orange.  Additional notices were sent to 99 South Grove Street, East Orange. On some of the mailings, the zip code was incorrect.

None of the notices were returned as undeliverable, and EOWC Executive Director Harry Mansmann testified that the EOWC is located at 99 South Grove Street.  However, Mansmann stated that "since 2003, the Water Commission never received any Chapter 75 cards, but only tax bills from Livingston at the 99 South Grove Street address."

 the assistant executive director and engineer for the EOWC, with allegedly conspiring to manipulate the agency’s water supply by shutting down contaminated wells prior to monthly water tests in order to falsify results. 

When Mansmann reviewed accounts in September of 2009, he discovered the increased assessments, which were sent by Livingston in June/July of 2009.

The deadline to file an appeal either with the County Board of Taxation or the Tax Court is "on or before April 1, or 45 days from the date the bulk mailing of notification of assessment is completed in the taxing district, whichever is later." (NJSA 54:3-21). 

Mansmann did not challenge the assessments in September of that year.

The court decision noted, "There is no question that East Orange had actual notice and thus, knowledge of the increased assessments in June/July 2009 when it received the tax bills, or at the very latest, in September 2009 at the meeting with the assessor and Appraisal Systems.  While it was reasonable for Mr. Mansmann to seek an explanation for the basis of the 2009 assessments from the assessor, nothing prevented East Orange from filing a complaint in the Tax Court."

"East Orange Water Commission is delinquent on their taxes to Livingston," said Township Manager Meade.  "They have been in delinquent status since 2009."

EOWC also charged that any tax sale of its Livingston properties would violate the Green Acres Act. Patch will detail that situation in another story.