Justia Connecticut Supreme Court Opinion Summaries

After Defendant, the owner of real property in the Town of Canton, abandoned the subject property, the Town filed a petition seeking the appointment of a receiver of rents. The trial court, finding that Defendant owed the Town taxes, granted the petition and authorized the receiver to collect all rents or use and occupancy payments. The court subsequently modified its order to allow the receiver to evict the tenant and to bring an action against the tenant for all rents due. The tenant moved to remove the receiver, asserting that the receiver had exceeded its authority under Conn. Gen. Stat. 12-163a by serving it with a notice to quit and by bring an action to collect back taxes and prior rents. The court denied the motion for removal. The Appellate Court (1) reversed insofar as the trial court granted the receiver’s motion to modify the receivership orders, but (2) affirmed insofar as it denied the tenant’s motion to remove the receiver. The Supreme Court (1) reversed as to the reversal of the trial court’s judgment granting the receiver’s motion for modification, holding that section 12-163a does authorize a receiver to use legal process to collect rent due prior to the date of the receiver’s appointment; and (2) otherwise affirmed. View "Canton v. Cadle Props. of Conn., Inc." on Justia Law

This case concerned the valuation of property owned by Plaintiff on which Plaintiff built a continuing care retirement community. In 2007, the assessor determined that Plaintiff's property had a fair market value of $117,621,000 and an assessment value of $82,334,600. Plaintiff challenged the valuation. The board of assessment appeals upheld the assessor's valuation. Plaintiff appealed, alleging it was aggrieved by the actions of the board because the assessor's valuation of the property exceeded seventy percent of its true and actual value on the assessment date. The trial court denied the appeal. The Supreme Court affirmed, holding (1) the trial court's determination that Plaintiff failed to establish aggrievement under Conn. Gen. Stat. 12-117a was not clearly erroneous; and (2) the trial court properly determined that Plaintiff failed to meet its burden of proving the town's assessment of the property was manifestly excessive under Conn. Gen. Stat. 12-119. View "Redding Life Care, LLC v. Town of Redding" on Justia Law

Plaintiff Scholastic Book Clubs, Inc. sells its products to Connecticut schoolchildren by having schoolteachers submit to Plaintiff book orders the teachers have collected from students. The books are delivered to the teachers, who then distribute the books to the students. In 2006, the commissioner of revenue services imposed a sales and use tax deficiency assessment on Plaintiff for more than $3 million. Plaintiff protested the assessments. The commissioner upheld the assessments, reasoning that Plaintiff had sold its products using "in-state representatives" pursuant to Conn. Gen. Stat. 12-407(a)(15)(A). The trial court reversed. The Supreme Court reversed the trial court, holding (1) the trial court incorrectly determined that the teachers were not Plaintiff's "representatives" within the meaning of section 12-407(A)(15)(a)(iv), as the teachers serve as the exclusive channel through which Plaintiff markets, sells and delivers its products to Connecticut schoolchildren; and (2) the trial court incorrectly determined that the taxes could not be imposed under the commerce clause, as the activities of the Connecticut schoolteachers who participate in Plaintiff's program provide the requisite nexus under the commerce clause to justify imposition of the taxes. View "Scholastic Book Clubs, Inc. v. Comm'r of Revenue Servs." on Justia Law

Plaintiff HVC Inc. was a trustee of the Honda Lease Trust. During the audit period at issue, several car dealerships entered into thousands of leases with customers (lessees) pursuant to lease plan agreements between the dealerships, the trust, and the servicer of the trust. Under the leases, the lessees were responsible for submitting the vehicle registration renewal application and renewal fees to the department of motor vehicles on behalf of the trust. Upon receipt of the renewal application and fee, the department sent the vehicle registration card to the trust, and the trust forwarded the vehicle registration card to the appropriate lessee. After conducting a sales and use tax audit for the audit period from April 1, 2001 through October 31, 2004, Defendant Pamela Law, the then commissioner of revenue services, issued a deficiency assessment against Plaintiff, concluding that the renewal fees constituted taxable gross receipts of the trust and, therefore, were subject to the sales tax. The trial court rendered summary judgment partially in favor of Defendant. The Supreme Court affirmed, holding that the renewal fees paid by the lessess qualified as Plaintiff's gross receipts subject to sales tax under Conn. Gen. Stat. 12-408(1). View "HVT, Inc. v. Law" on Justia Law

For several years, Plaintiff Housatonic Railroad Company purchased diesel fuel from a petroleum distributor that was used exclusively by Plaintiff as part of its interstate freight rail business. The distributor remitted the petroleum tax to Defendant, the commissioner of revenue services. The distributor separately billed Plaintiff for the amount of tax it paid to the department of revenue services, and Plaintiff paid that amount directly to the distributor. Plaintiff then submitted requests to the department for a refund of the money paid for the petroleum tax by the distributor to the department. The commissioner denied Plaintiff's request. Plaintiff appealed. The trial court granted Defendant's motion to dismiss, concluding that the state was immune from suit because Plaintiff could not establish an exception to sovereign immunity under any of three separate statutory provisions. The Supreme Court affirmed, holding that none of the statutory provisions on which Plaintiff relied permits a rail carrier to bring an action against the state for a refund of taxes paid by a petroleum distributor. View "Housatonic R.R. Co. v. Comm'r of Revenue Servs." on Justia Law

The present matter arose from three related tax appeals involving Plaintiff Goodspeed Airport's property that consisted of a commercial utility airport and forty-three acres of open fields. The superior court denied relief on Plaintiff's claim seeking reclassification and assessment of certain of its real property as open space and disposed of all three appeals. The appellate court concluded that (1) 13.08 acres of Plaintiff's property were ineligible for open space classification; and (2) Plaintiff, notwithstanding the ongoing improper classification of its property by Defendant, the town of East Haddam, was not entitled to judicial relief from the improper assessment of its forty-three acres. The Supreme Court reversed, holding that the appellate court improperly concluded that the trial court properly determined that the 13.08 acres were ineligible for open space classification and that Plaintiff was not aggrieved pursuant to Conn. Gen. Stat. 12-117a on the basis of Defendant's ongoing overassessment of the forty-three acres. Remanded. View "Goodspeed Airport, L.L.C. v. East Haddam" on Justia Law

Plaintiff-Appellant Alexandre was selected for a tax audit by Defendant, to cover the period October, 1999 to March, 2005. In preparation, Plaintiff pulled ledgers, bank statements, and "z reports" or summary cash register tapes for review by the auditor. Detailed records were used to prepare the "z report", but it was Plaintiff's custom to discard those receipts once the z-report was complete. Without the detailed register receipts, the state auditor used an industry-standard method of calculating properly audited gross receipts. By this method, the auditor assessed a tax delinquency of over $250,000, which eventually lead to a tax lien on Plaintiff's business and property. Plaintiff sought a hearing from Defendant to reconsider the penalties and lien; the penalties were reduced, but Plaintiff brought suit seeking the entire assessment be set aside. The trial court concluded that because Plaintiff did not keep the detailed register receipts, he had no basis to challenge the Defendant's review of the original audit and assessment. In this appeal, the Court upheld the lower court's findings, holding that Plaintiff's "z reports" were not enough to preclude the auditor from using the industry-standard method Plaintiff's sales receipts.