HACKENSACK WATER COMPANY v. BOROUGH OF OLD TAPPAN


77 N.J. 208 (1978)

390 A.2d 122

HACKENSACK WATER COMPANY, RESPONDENT, v. BOROUGH OF OLD TAPPAN, A MUNICIPAL CORPORATION, APPELLANT. BOROUGH OF OLD TAPPAN, A MUNICIPAL CORPORATION, APPELLANT, v. DIVISION OF TAX APPEALS IN THE DEPARTMENT OF THE TREASURY, STATE OF NEW JERSEY, RESPONDENT.

The Supreme Court of New Jersey.

Decided July 24, 1978.


Attorney(s) appearing for the Case

Mr. Marvin H. Gladstone argued the cause for appellant (Messrs. Gladstone, Hart, Mandis, Rathe & Shedd, attorneys).

Mr. Joseph Keane argued the cause for respondent Hackensack Water Company (Messrs. Milton, Keane & Brady, attorneys; Mr. Thomas J. Brady on the brief).

No appearance was made on behalf of the Division of Tax Appeals.


The opinion of the court was delivered by SCHREIBER, J.

This case presents a difficult problem in real property tax valuation involving the assessment under N.J.S.A. 54:30A-52 of land beneath a reservoir created and owned by the Hackensack Water Company, a private water public utility. The municipal taxing authority is the Borough of Old Tappan.

I

The background of this controversy is as follows. In the late 1950's, the taxpayer, Hackensack...

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