Bank tycoon loses tax fight over South Jersey mansion

MOORESTOWN – Banker Vernon W. Hill II and his wife have lost an appeal of the hefty tax bill on their palatial estate.

A two-judge panel on Thursday upheld a 2008 tax assessment of $20.8 million for the Hills' mansion in the 200 block of East Main Street.

The appellate rulng said Tax Court Judge Patrick DeAlmeida correctly endorsed the township's assessment after a three-day trial in January 2013.

Vernon Hill is the founder and former chairman of Commerce Bank N.A., a Cherry Hill-based institution that was acquired by TD Bank. He is the founder and current chairman of London-based Metro Bank.

The couple's home had annual property taxes of almost $440,000 in the township's 2015 fiscal year.

Thursday's decision, sounding at times like a real estate listing, noted the Hills' 13-year-old home has more than 29,000 square feet of living space and more than 55,000 square feet of improvements on 44 acres. The U-shaped mansion includes 11 full bathrooms, six bedrooms, three kitchens, two massage rooms and a wine cellar, among other amenities.

The ruling noted the home "is built in an Italianate style and boasts a Barre granite facade, granite terraces, cascading waterfalls and several reflecting pools."

"The walls and floor of the two-story foyer are marble," said the decision. "A fountain of black onyx marble anchors a circular marble staircase to the second floor."

It noted two "viewing rooms" are available "for admiring the landscape" and described a two-story Lemon Room as "a sort of orangery for lemon trees."

The decision described DeAlmeida's ruling as "careful and well-reasoned."

In setting the home's value, DeAlmeida rejected multiple arguments by expert witnesses for Vernon and Shirley Hill, including one who asserted the property had a 75 percent depreciation rate.

DeAlmeida determined the cost of reproducing the building and site improvements to be $33.8 million, while the land value was $1.5 milllion. He reached a market value of $32.4 million after adjusting for depreciation of 7.5 percent and allowing for a 5 percent builder's profit.

In contrast, trial witnesses for the Hills put the property's fair market value at $26 million.

The home's assessed value was reduced to $17.3 million after a township-wide reassessment in 2012.

Jim Walsh; (856) 486-2646; jwalsh@gannett.com