On appeal from the Tax Court of New Jersey.
Approved for Publication February 29, 1996. As Corrected March 28, 1996.
Before Judges Dreier, A.m. Stein and Kestin. The opinion of the court was delivered by A.m. Stein, J.A.D.
The opinion of the court was delivered by: Stein
The opinion of the court was delivered by A.M. STEIN, J.A.D.
Badische Corporation (BASF) appeals from the Tax Court's review of the 1992 tax assessment of its property at 50 Central Avenue in Kearny. The property is an owner-occupied chemical plant located on 27.136 acres of industrial property. As of the valuation date of October 1, 1991, the plant was no longer operating.
The Chapter 123 Ratio, N.J.S.A. 54:51A-6, for the Town of Kearny was 53.77% for the 1992 tax year. Applying this ratio to the assessment indicates an assessed fair market value of $10,358,936 ($5,570,000/.5377)
In a reported decision, the Tax Court found the true value of the subject property on October 1, 1991 to be:
Total: $7,360,253 (round to $7,360,200)
Badische Corp. v. Town of Kearny (Badische II), 14 N.J. Tax at 219, 231 (Tax 1994). After applying the 53.77% ratio, the Tax Court reassessed the property at:
Before making adjustments for economic obsolescence and environmental contamination, BASF's valuation expert appraised the land value at $100,000 per acre, for a total of $2,713,600 which he rounded to $2,715,000. His valuation was based on the average adjusted per acre sale price of six other industrial properties (comparable sales):
Sale Sale Date Acres Unadjusted
1 Mar. 1985 13.820 $104,962
2 Nov. 1985 8.310 $110,000
3 Feb. 1987 4.756 $110,000