Paper Mill Playhouse, Plaintiff-Appellant v. Millburn Township, Defendant-Respondent

Summary

The Supreme Court of New Jersey held that Paper Mill Playhouse is entitled to an exemption from local property taxes under N.J.S.A. 54:4-3.6 because it satisfies the statutory requirements of being organized for moral and mental improvement, using its property exclusively for that purpose, and not operating for profit. The Court reversed the Appellate Division’s denial of the exemption. Justice Clifford and Justice Schreiber dissented, arguing that the theater operates as a commercial enterprise and therefore does not meet the exclusive‑use requirement.