Generations Willimantic LLC v. Town of Windham
Town Disputes Whether 'Charity' Is Exempt From Property Taxes
Taxation | Residential and Commercial Real Estate
- Windham J.D.
- Apr 04 2014 (Date Decided)
- Boland, J.
Allegations that a corporation operates a community health center that possesses a charitable character and is tax exempt may be sufficient to allege that the corporation is exempt from municipal taxes. The plaintiffs allege the following facts. The plaintiff, Generations Willimantic LLC, leases property to the plaintiff, Generations Family Health Center Inc., which uses the property for a charitable use. Although the plaintiffs are tax exempt under the Internal Revenue Code, the defendant municipality taxed the property. The plaintiffs request a declaratory judgment from the court that the subject property is tax exempt as a 501 charity. The municipality moved to strike. Although the town’s motion to strike, which argued that the plaintiffs did not adequately plead charitable use, was insufficiently specific, the plaintiff responded to the motion on the merits and arguably waived the defect. Connecticut General Statutes §12-81(7) exempts the “real property of, or held in trust for, a corporation organized exclusively for scientific, educational, literary, historical or charitable purposes. . . .” The statute adds, “The real property shall be eligible for the exemption regardless of whether it is used by another corporation organized exclusively for scientific, educational, literary, historical or charitable purposes.” The plaintiffs adequately alleged that the corporation operates a community health center that possesses a charitable character and that qualifies as a 501 charity under the Internal Revenue Code. The plaintiffs’ complaint adequately alleged a cause of action, and the court denied the municipality’s motion to strike.