Back in 1978, Montclair NJ inked an agreement with Union Montclair Housing Association under which the Association would,until 2028, pay a percentage of its gross revenues for township services instead of property taxes.

In 2006, Montclair created a sewerage authority, which charged residents for access to the town's sewer system. The authority billed directly for access, and the charges were removed from the tax bill.  Montclair billed the Association, claiming the agreement was for taxes and the authority's charges were not taxes. The Association sued the Township.

Trial court granted summary judgement to Montclair, but the Appellate Court just reversed.  There was no change in the services offered to the Association, just an additional cost which had the same effect as a tax increase.