Township Reaches $3.1 Million Tax Settlement With Moorestown Mall

MOORESTOWN, NJ — Moorestown Council approved the refund of $3,125,271 in tax overpayments to the Moorestown Mall during its meeting on Monday night, Oct. 23, at town hall. The township will refund the mall $500,271 this year, and provide the mall with a tax credit for $525,000 each year from 2018 to 2022.

The resolution, approved as part of the consent agenda, issues repayments for 2011 ($1,342,488.18), 2012 ($1,342,104) and 2013 ($ 440,678.82). Appeals for 2009, 2010, 2014, 2015, 2016 and 2017 were all dismissed.

The mall filed its initial tax appeal in 2009, one year after a township-wide revaluation in 2008. It also filed appeals each year since, and because of the size of the appeals, it was sent through the state court system for consideration, according to Township Manager Tom Merchel.

It was worth $110 million when the process began, and has grown to $129 million since then. It is the biggest taxpayer in the township, and Merchel said he was trying to settle the whole issue at once. The township and the mall ultimately reached a settlement, which was approved by the court on Sept. 25.

“By settling, we know what the figure is, and we structured it in a way so that the township can handle the burden and pay it over a number of years,” Merchel said. “As part of the settlement, the interest has been waived, and that would’ve been a huge number itself.”

Council approved the resolution with a 5-0 vote. Council members praised Merchel's efforts, which have been underway since the first appeal was filed.

It was initially listed as a matter “Authorizing the Tax Collector to Cancel and Refund Tax Overpayments.” After Councilwoman Lisa Petriello suggested the title wasn’t clear enough, the title was amended to ensure the term “Moorestown Mall” would be inserted for future reference.

Patch file photo