Gourmet Dining v. Union Township

Gourmet Dining operated a “high-end” restaurant out of a building on the campus of Kean University. When Union Township issued tax assessments to the restaurant, Gourmet Dining appealed to the Tax Court. Gourmet argued was exempt based on an NJ law, which some buildings on college campuses. The Tax Court ruled in favor of the Township, and the Appellate Division reversed the Tax Court. However, the NJ Supreme Court reversed the Appellate Division and ruled that the tax exemption provisions in issue were not intended to exempt the for-profit operator of a high-end restaurant situated on a college campus when the overriding purpose of this commercial endeavor is focused on profitmaking.