Jersey City suing the Port Authority for $400M

Bi-state agency owes taxes on city properties, Jersey City mayor alleges

TRD New York /
May 23, 2014 08:00 AM

Jersey City is suing the Port Authority of New York and New Jersey, alleging the bi-state agency owes back taxes on dozens of properties it owns across Jersey City.

On Thursday, a $400 million suit was filed in federal district court against the organization.

Jersey City Mayor Steve Fulop told the Jersey Journal earlier this year that he was planning to file the suit. In a statement on Thursday he said Jersey City “will not be bullied or pushed around” by the Port Authority.

Months negotiation between the Port Authority and the city have been unsuccessful, Fulop told NJ.com.

According to NJ.com, Fulop also intends to pursue legal action against the Port Authority’s planned $118 million waste transfer station at Greenville Yards, on the southern end of the city.

The Port Authority owns 40 city properties, but pays “no real-estate taxes on any of them,” according to the complaint. If the Port Authority paid traditional taxes, the city would gain $18 million annually, the suit says.

“While the Port Authority has benefited handsomely from its acquisition and ownership of properties in the city, the city has suffered an undue loss of taxes,” the complaint says. NJ.com reports that according to Jersey City, the Port Authority pays $2.2 million in payments in lieu of taxes for seven of its 40 city properties. The Port Authority pays nearly $90,000 in taxes every year for the 9.3 acre property at Journal Square. According to NJ.com, the property would generate $9.6 million in regular taxes. [NJ.com] – Claire Moses 


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