Seaside Park Officials: Tax Revenue Went to Berkeley Township Despite Annexation

Route 35 South in South Seaside Park. (Credit: Monmouth-Ocean MLS)

Despite Seaside Park having legally annexed South Seaside Park earlier this year, property tax revenue generated by property owners there flowed to Berkeley Township – its former home – after quarterly revenue was collected May 1. Officials in Seaside Park said that while they are now providing services to their once-neighbor, the revenue has not followed, and the next step may be legal action.

Seaside Park annexed South Seaside Park on March 30 after a petition from residents to leave the jurisdiction of Berkeley Township was approved by the borough council after months of consideration. The first period remittance of quarterly property tax bills occurred May 1, but the revenue never reached the coffers of the borough. Instead, it went to Berkeley Township. Mayor John Peterson said correspondence sent to Berkeley officials went unanswered. The revelation led to a lengthy discussion between elected officials and residents at a borough council meeting just over a week ago.

“We will be seeking relief in any and all forms, and with the assistance of any and all state, county, local agencies, entities, or individuals,” said Peterson. “The tax revenue should certainly go to the municipality that is actually providing the services.”

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Peterson said the lingering issue could also complicate real estate sales, during which buyers and sellers must reconcile the fact that property tax bills have been paid in full prior to closing.

“There are a whole host of ancillary problems that have been created,” Peterson said, including dividing up the portion of tax bills for the elementary school district. “There are very few elementary-age students from the area in question, but nonetheless, that portion of the tax payment should go to Seaside Park, which now has the legal obligation to provide for the thorough and efficient education for all of those students.”

As the property tax debate simmers, a series of meeting between committees of officials from the two towns are also obligated to meet to discuss what – if any – debt dedicated to South Seaside Park should be transferred from Berkeley Township to Seaside Park borough. Even those meetings did not go as smoothly as had been expected, although Peterson said some of the disagreements in those confidential meetings had to do with “gaps in interpretation” as to what the state’s annexation statute calls for.

“The borough of Seaside Park has participated in good faith, as per the statute, with a committee meeting,” he said. “It is clear that Berkeley Township was obligated to present to Seaside Park what they felt would be the financial ramifications of the annexation, and they did not do so at the first meeting. Subsequent to that, we’ve had input from Berkeley Township as to their contentions.”

Peterson said additional correspondence has been sent to Berkeley Township, as officials continue to research their options as to how to proceed.