IMO your test kit is out of whack if your getting that high of ammonia from your source water. Are you using an RODI filter kit or just using straight tap water? My experience is that "most" tap water is not very good to use for reef keeping and I would highly recommend that you use RODI water for your source water.
If I was you I would take a water sample into your LFS and have them test it or if you have a friend with a different set of test kits have them test it to see if you get the same readings.
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