City Council approved another multi-year tax appeal settlement with a local motel chain, resulting in an average tax refund of 17 percent over four years, with a 2019 reduction yet to come.

The governing body unanimously adopted a resolution (AR-166-18) at its combined pre-conference and regular meeting on Aug. 13, authorizing the tax appeal settlement with Jaykish, Inc., which had taken the matter of the Tax Court of New Jersey.

As part of the settlement, the owner of Rodeway Inn (Block 336, Lot 2) on Route 1 South agreed to withdraw an appeal for the 2014 tax year, with a reduction for the the years 2015 through 2019. The property, which sits on about two-thirds of an acre, was acquired in 1987 for $87,772, according to property records, and is assessed for $800,000, including $220,300 for the land and $579,700 for the two-story building.

The settlement includes reducing the overall tax assessment for five tax years, including next year:

• 2015 – $800,000 to $700,000, -12.5 percent
• 2016 – $800,000 to $675,000, -15.63 percent
• 2017 – $800,000 to $650,000, -18.75 percent
• 2018 – $800,000 to $625,000, -21.88 percent
• 2019 – $800,000 to $600,000, -25 percent

The total tax refund of $35,862.25 breaks down by year as follows:

• 2015 – $6,317 of a total $50,536
• 2016 – $7,986.25 of a total $51,112
• 2017 – $9,792 of a total $52,224
• 2018 – $11,767 of a total $53,544

The total breaks down to an average refund of almost $9,000 per year for the four years and 2019 is still to be determined. Although it’s likely to increase, assuming the same tax rate for 2019 would mean a reduction of about $13,386, or about 25 percent. Here’s a breakdown by year of the assessments, estimated taxes and revised taxes, with percentages calculated.

By comparison, the five-story Best Western across the highway is assessed for $2.4 million, which was reduced to $1.6 million as part of a recent settlement.

Last month, City Council approved a multi-year tax appeal settlement with the owner of Best Western Inn & Suites on Paterson Street, across the highway from the Rodeway Inn. The almost $166,000 refund for four tax years (2009-2012) was about a 30-percent reduction per year but in total was slightly more than the 2018 property tax bill of about $159,000. As part of that settlement, the property owner agreed to withdraw appeals for 2013 and 2014.

Rodeway Inn is operated by Phoenix, Ariz.-based Choice Hotels, and has about 640 locations in the United States.