Yes, its a VERY bizarre arrangement. The properties are sold on a 99-year perpetual lease as you stated, and the developer that arranges for the creation of the condo building hoa (Leesee) goes into an arrangement with the Camp Meeting Association (Lessor) that they will charge (for Condos only) each unit Owner (sub-Leesee) this "land rent" that is to be collected by the Condo HOA (Leesee) and paid to the Camp Meeting Association (Leesor). Single family homes in the area pay very small fees and this is mostly historical precedent in nature , $10-$50 per year, but Condos pay $1,000's in this "land fee" each year and the amount increases in perpetuity based on adjustments in the CPI.
The town is truly Neptune Township, and Ocean Grove is only a historic district within the town. Each home owner is responsible for paying taxes to the township, and it is recognized as a fee-simple transaction from a legal standpoint, with tax on the property being for "land" and "improvements" directly by each home owner to Neptune Township.
This "land rent' is in effect not valid, on a fee-simple transaction, as the ownership and costs due are paid for directly by the unit owner (not the Camp Meeting Association, as they waive that responsibility in the transfer of the lease at time of purchase). This is an additional set of Lease terms, that complicates where these costs should be noted for from a taxable standpoint.
Basically you are paying rent to a "Leesor" on property that you already fully redeemed upon the original property purchase. So is it a district tax (since it is based on sales price of the unit x a multiplier), just like a real estate tax, or is a "fee" to belong to the religious community (like being part of a country club, but in this case it is a private religious community) - making it a form of a charitable donation? Seems like it should fit somewhere in the tax code. Just not sure where. Any additional help would be appreciated.
