Cases
Rep Matters: State Farm Fire & Cas. Co. v. Sayles 289 F.3d 181, 2002 WL 832014, C.A.2 (Conn.), May 02, 2002 (NO. 01-7186)
H & S Secures Reversal on Municipal Tax Ruling
In Gene Kasica v. Town of Columbia, SC 18968, Halloran & Sage ( Laura Pascale Zaino
Michael Collins), on behalf of the Town of Columbia ( the Town ), secured a reversal by the Connecticut Supreme Court of a trial court judgment holding that municipal assessors did not have authority to tax partially completed construction. The plaintiff had challenged the Town of Columbia's assessor's valuations of his partially constructed, three story, plantation-style house for the 2008
2009 gr
lists. In 2008, the assessor determined that construction was 35% complete
adjusted the property's assessment on the 2008 gr
list to reflect that. In 2009, the assessor determined that construction was 40% complete
adjusted the property's assessment on the 2009 gr
list to reflect that. The plaintiff appealed those valuations to the trial court.
The trial court ruled in favor of the plaintiff, holding that the assessor could not legally increase the assessed value of the property based solely on the new construction because interim assessments are governed by 12-53a.... The trial court concluded that that statute governed the assessments at issue
held that [b]ecause an interim assessment under 12-53a (a) cannot commence until after new construction is completed, the assessor acted outside of [her] statutory m
ate by performing an interim assessment when the property was [incomplete]. In reaching this conclusion, the trial court rejected the Town's argument that Conn. Gen. Stat. 12-55 governed the analysis
afforded the assessor with the authority to tax the partially completed construction.
On appeal, the Town argued that the assessor had the authority to tax partially completed construction pursuant to Conn. Gen. Stat. 12-55. The Town also argued that the trial court improperly applied Conn. Gen. Stat. 12-53a to the facts of this case because 12-53a only applied to completed new construction. The Supreme Court agreed with the Town
reversed the trial court judgment.
In doing so, the Supreme Court reaffirmed the conclusion it reached in 84 Century Ltd. Partnership v. Board of Tax Review, 207 Conn. 250, 262 (1988) that 12-55 provides assessors with broad authority to conduct interim assessments of real property
further determined, as a question of first impression, that that authority extends to taxing partially completed construction. It found support for this conclusion in the statutory scheme governing the taxation of real property in Connecticut which provides, among other things, that all improvements to building lots are taxable. Conn. Gen. Stat. 12-64. The partially completed construction improved the plaintiff's building lot
was, therefore, taxable.
The Supreme Court rejected the plaintiff's argument, which echoed the trial court's determination, that Conn. Gen. Stat. 12-53a governed the analysis. Instead, it agreed with the Town that 12-53a was strictly limited to assessing
taxing completed new construction
that because the construction at issue was only partially completed at the time of the assessments, it had no bearing on the facts of this case.
In sum, the Supreme Court has confirmed that partially completed construction is,
always has been, taxable in Connecticut. This important holding confirms the propriety of a longst
ing practice by municipal assessors throughout the state to tax partially completed construction, as well as the income municipalities have generated by their doing so.
HLO L
Ownership Associates, Ltd Partnership v. City of Hartford, 248 Conn. 350 (1999)
Xerox Corp v. BTR City of Hartford, 240 Conn. 192 (1997)
City of Hartford v. Stanley V. Tucker, 225 Conn. 211 (1993)
IBM Credit Corp. v. BTR of City of Hartford, 227 Conn. 826 (1993)
