Jaguar 'Narrowly Interprets' Act Imposing Fee On Mahwah HQ: Court Said

MAHWAH, NJ — In an appeal in the New Jersey Tax Court, Jaguar Land Rover, the automobile manufacturer headquartered in Mahwah, was denied exemption of a non-residential development fee, after the court found that the company adopted an "overly narrow and unreasonable interpretation" of a statewide statute.

In a formal opinion published last week, the court said that it found that the statute, the Non-residential Development Fee Act, is "clear and unambiguous on its face," and that Jaguar is ineligible for an exemption, which are provided by the statute if a particular set of criteria are met.

Those criteria are that a property area — in this case, Mahwah — be situated within a one-half mile radius surrounding the midpoint of a New Jersey Transit Corporation, Port Authority Transit Corporation or Port Authority Trans-Hudson Corporation rail station platform. It must also be specifically delineated as an "urban transit hub" by the New Jersey Economic Development Authority.

While Mahwah is within a one-half mile radius of Suffern Station, New York, which is operated by New Jersey Transit, the township is not specifically delineated by the NJEDA — a fact that, the court said, was "undisputed."

Jaguar, however, disagreed, the opinion said, that Mahwah did not qualify as an "urban transit hub," and challenged the assessed fee of $75,000, which it paid "under protest" in June 2018. In a letter of the same date to the township, and then later to the Director of the New Jersey Division of Taxation, and finally in an appeal in the State Tax Court, the company stated its position.

Jaguar argued, the opinion said, that to hold that an exempt property must be located within a specifically NJEDA delineated urban transit hub is "incongruent and contravenes the plain language" of the statute. It alleged that the statute requires only that the property be within one-half mile radius of one of the named transit corporations' rail stations.

However, the court found that the company narrowly interpreted the statute in a way that was "unpersuasive and contrary to New Jersey jurisprudence on statutory interpretation," and would "beget more confusion than clarity."

"Whether through a lack of understanding or a lack of precise articulation, the parties have muddled the requirements of the statute," the opinion said.

Both the township and the state tax director, similar to the court, argued in letters that Jaguar is not entitled to exemption, for reason that Mahwah, though it meets proximity requirements to one of the named transit corporations' rail stations, is not a specifically enumerated eligible municipality by the NJEDA.

Mahwah and the tax director filed motions for summary judgement, both of which were granted, and Jaguar filed its own cross-motion, which was denied.

Jaguar did not immediately respond to request for comment.