Rowan University plans to pursue a tax break on the $1 million Harrison Township property it recently purchased for its president.
HARRISON TWP. -- It's unclear whether Rowan University will receive a property tax break on a nearly $1 million home it purchased last month for the college's president, Dr. Ali Houshmand.
Last month, the Rowan University Foundation -- a nonprofit that oversees fundraising and charitable contributions for the university -- purchased a 5,700-square-foot home on Bailey Road, in Mullica Hill, for $925,000.
Rowan spokesman Joe Cardona said obtaining a tax break on the new property depends on establishing how the property would be used -- whether primarily for business or personal.
He said the university plans to discuss that matter with Harrison Township and potentially negotiate a deal. But for now, any potential reduction in property taxes is "to be determined," he said.
"We have not had that conversation," Cardona said.
Taxes on the property are listed at roughly $24,000 a year, according to last year's tax records. The property and home is assessed at $876,200.
Harrison Township Mayor Lou Manzo said it was his understanding that the county tax assessor "dictates the taxes to be collected based on the filing of ownership of the property."
"It's not a choice for the local governing body," he said.
A few years ago when Rowan's former president lived in a house in Woodbury, the college received a tax break on that property.
Rowan had a payment in lieu of taxes agreement with Woodbury under which the university paid an increasing figure each year. They paid $15,000 when the agreement began in 2007 and $17,910.78 in 2013. The house was sold to the Diocese of Camden in December 2013. The diocese has not applied for tax-exempt status and paid $23,183.74 in taxes last year.
The school then downsized and moved its president into a $316,000 house on Merganser Court in Glassboro. The university, not the foundation, bought that house.
The school pays no property taxes on it and there is no PILOT agreement.
Cardona previously told NJ Advance Media that this house -- located in a 55-and-older community -- did not have the capacity to handle events he has to host for "donors, friends of the university and employees."
Large gatherings for college functions caused parking issues in the neighborhood.
Houshmand is expected to move into the Harrison Township home after the spring semester concludes, according to Cardona.
The Glassboro home will be put up for sale once Houshmand's moving plans are in place.
Spencer Kent may be reached at skent@njadvancemedia.com. Follow him on Twitter @SpencerMKent. Find the South Jersey Times on Facebook.