New Jersey CRE Owners Caught Leasing Without a License

Almost nine out of 10 commercial property owners in Union City, N.J., are operating without valid business licenses, a recent audit of Hudson County tax records revealed. According to city staff, the audit found that 348 of 400 commercial property owners didn’t have valid business licenses to lease out their properties. The city may be owed close to $1 million in delinquent fees.

Notices will be sent to owners with invalid or no licenses asking them to pay for the current year plus three previous years’ worth of business license taxes. Failure to respond may result in additional fees. The business license tax rate for commercial leasing activities in Union City is 86 cents per $1,000 of gross income, with a minimum fee of $102.

The audit was part of a continued effort to ensure that Union City is collecting all taxes and fees it’s owed. If all business owners who receive notices comply, the city may generate anywhere between $400,000 and $800,000. Last year, the city did a similar review of rental properties and found that 2,600 parcels were not owner-occupied and required business licenses.