Jersey City Sues the Port Authority

Jersey City is suing the Port Authority of New York and New Jersey for $315 million in back taxes.   

The bi-state agency owns 40 properties in Jersey City, but isn't required to pay real estate taxes on any of them, according to a statement released by Mayor Steven Fulop.  

The Port Authority and the city have an agreement on seven of the properties that does generate payments in lieu of taxes, but the mayor argues that structure is inadequate. One example: Fulop says the Port Authority pays Jersey City $87,000 a year for the Journal Square PATH Plaza. But the assessed tax rate, according to the mayor, is $9.5 million.

In a statement, Fulop said the city has attempted to settle the matter outside of court for months, to no avail. “We feel confident we have a strong case against the Port Authority and will prevail on behalf of the Jersey City taxpayers," he said. 

The city is also seeking to block a Port Authority barge-to-rails waste transfer project currently under development.

A spokesperson for the Port Authority said "Jersey City’s claims are without merit, and we will  vigorously defend ourselves against these allegations.”

Jersey City filed the suit in a federal court in Newark.