At every turn, Ex-Goldman Sachs banker Phil Murphy has displayed an unwillingness to play by the rules. While homeowners in New Jersey suffered, Goldman Sachs alum Phil Murphy shortchanged his hometown, public school district and county for over a decade by paying less taxes on a severely under-assessed home and then suing when the authorities caught on.
Phil Murphy purchased his home in 1998 in Middletown, Monmouth County. When after ten years of paying substantially less in taxes was finally uncovered by the Monmouth County Board of Taxation in 2009, Murphy sued to have the assessment on his $14.8 million dollar home lowered by $2 million, a burden to the county that was passed on to fellow homeowners.
Last year, it was reported that Phil Murphy paid $202,350 property taxes on his Middletown mansion:
- “… Murphy pays $202,350 in property taxes on his Middletown mansion, compared to $12,600 in taxes on a home in Italy and $3,908 in taxes on a home in Germany, according to the report.” – How much did Phil Murphy make last year? A look at his tax returns, NJ.com, by Brent Johnson, Dec. 15, 2016
- “Local property taxes on the Murphys’ riverfront Middletown estate totaled $202,350.” – Goldman Retiree Running for N.J. Governor Had $7 Million Income, BloombergPolitics, by Elise Young, Dec. 14, 2016
- “Murphy paid… $202,000 in New Jersey property taxes on his mansion in Middletown… Virtually all of Murphy’s millions in income come from a dizzying array of investments.” – He’s a 1 Percenter, But Phil Murphy Says He’ll Take on Wall Street, WNYC, by Dusty Christensen, Dec. 16, 2016
What wasn’t reported was that Phil Murphy sued Middletown to get his property taxes lowered.
While he campaigns on a platform discussing how everyone needs to pay their “fair share”, Phil Murphy clearly doesn’t believe these rules should apply to himself.
Not only does his lawsuit display a total disregard for the impacts his actions have on the community around him, it highlights the all too prevalent reality that the wealthy like Phil Murphy can buy whichever rulebook suits them.
New Jersey’s middle class, the ones that really need the property tax relief, are left in the cold while Wall Street execs burden the municipalities that serve them with frivolous lawsuits.
- 1998 Phil Murphy and his wife Tammy bought their home in Middletown (Monmouth County). The house cost just under $6 million (See attachment 1 – Deed).
- 1999 Original Assessment Is Low – Despite buying the house for $6 million, the 1999 assessment for the property was only $2 million (Attachment 2 – Original Assessment).
- 2009 Murphy’s home remained under-assessed until 2009 – House was continually assessed at under $3 million until 2009, when it was reassessed to $14,765,900 in value (Attachment 3).
- 2010 Murphy appeals 2009 assessment and sues the Monmouth County Board of Taxation – Despite a decade of paying taxes on an under-assessed home, Murphy sued to have his assessment lowered by $2 million so he could pay less in property taxes (Attachment 4 – Memorandum of Judgment).
- 2011 Following the 2010 judgment, Murphy’s assessment was lowered even further to $9 million, well below the $12.7 million listed in the 2010 Memorandum of Judgment (Attachment 5 – 2011-16 Assessments).