Interlude, Inc. v. Skurat

831 A.2d 235, 266 Conn. 130, 2003 Conn. LEXIS 392
CourtSupreme Court of Connecticut
DecidedOctober 7, 2003
DocketSC 16690
StatusPublished
Cited by9 cases

This text of 831 A.2d 235 (Interlude, Inc. v. Skurat) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interlude, Inc. v. Skurat, 831 A.2d 235, 266 Conn. 130, 2003 Conn. LEXIS 392 (Colo. 2003).

Opinions

Opinion

PALMER, J.

The sole issue raised by this certified appeal is whether the plaintiff, Interlude, Inc., a tax-exempt organization, is hable for property taxes accruing prior to, but not becoming due until after, the plaintiffs acquisition of property. The defendant city of Danbury (city),1 claims that the Appellate Court improperly concluded that General Statutes § 12-8 lb2 and Dan-bury Code § 18-203 require the city to abate property [133]*133taxes that have accrued prior to the date of a tax-exempt entity’s acquisition of property. We conclude that § 12-81b provides only for an exemption from taxes accruing after the date of acquisition, rather than an abatement of previously accrued taxes. Accordingly, we reverse the judgment of the Appellate Court.

We glean the following undisputed facts and procedural history from the record and a joint stipulation of facts submitted by the parties to the trial court. The city assesses real property on October 1 of each year in accordance with General Statutes § 12-62a (a).4 Pursuant to General Statutes § 12-142,5 the city has deter[134]*134mined that payment of the assessment amount will be made in four quarterly installments: July 1 and October 1 of the year following the assessment, and January 1 and April 1 of the subsequent year. The city’s fiscal year runs from July 1 through the following June 30.

On October 1, 1991, the city assessed properties located at 25, 27, 29 and 31 Grand Street (property), which, at that time, were owned by Junco, Inc. (Junco), an entity that is not exempt from property taxes. Thereafter, Junco paid the first installment that was due on July 1, 1992. On September 24, 1992, Junco conveyed the property to the plaintiff, a nonprofit corporation that provides transitional housing, support and rehabilitation services to individuals with severe psychiatric disabilities. The plaintiff recorded the deed to the property on October 5,1992. Thereafter, on July 2,1993, the city notified the plaintiff that it had granted the plaintiff a tax exemption on the property pursuant to General Statutes (Rev. to 1993) § 12-81 (7).6

Thereafter, the city billed the plaintiff for the remaining three installments7 of the October 1, 1991 assessment and for the five days running from October 1,1992, the date of the following assessment, to October 5, 1992, the date on which the plaintiff recorded the deed to the property. Initially, the plaintiff did not pay this tax bill. On November 1, 1994, the city filed a tax hen on the property. On January 15, 1995, the plaintiff, under protest and in order to avoid a tax sale of the [135]*135property, paid the city $21,495.40 in taxes, interest and lien fees and an additional $2832.88 in attorney’s fees. The plaintiff then demanded reimbursement, which the city denied.

The plaintiff thereafter instituted the present action seeking: (1) a judgment declaring that, pursuant to § 12-81b and Danbury Code § 18-20, the plaintiff, as a tax-exempt successor in interest to Junco, was not liable for any taxes and, in particular, those becoming due after the date of acquisition; and (2) reimbursement of the money it had paid to the city under protest. The city pleaded, by way of special defenses, that the plaintiffs claim was time barred and that the claim was not authorized under General Statutes (Rev. to 1993) § 12-898 and General Statutes § 12-119.9

[136]*136The trial court concluded that, under § 12-81b, the plaintiff was entitled to reimbursement for the taxes that it had paid to the city that had accrued after the date of the plaintiffs acquisition of the property,10 but not taxes that had accrued before the date of acquisition but that became due after that date.11 The trial court rejected the plaintiffs contention that § 12-81b entitled the plaintiff to reimbursement for all taxes that it had paid, regardless of when those taxes had accrued. Therefore, the court denied the plaintiffs request for reimbursement of taxes that had accrued prior to its acquisition of the property on September 24, 1992, which comprised the bulk of the taxes that the plaintiff had paid under protest. The court ordered the city to reimburse the plaintiff only for its payment of the twelve days of taxes that had accrued subsequent to the acquisition date.12 The court did not address the special defenses asserted by the city.

The plaintiff appealed from the judgment of the trial court to the Appellate Court, claiming that the trial court improperly had construed the scope of the tax exemption prescribed by § 12-81b. Interlude, Inc. v. Skurat, 54 Conn. App. 284, 285, 734 A.2d 1045 (1999). The Appellate Court affirmed the judgment of the trial court without reaching the merits of the plaintiffs [137]*137claim, concluding that the plaintiffs action was barred by the one year statute of limitations contained in § 12-119.13 Id., 287-89. The plaintiff thereafter filed a petition for certification to appeal to this court, which we granted. Interlude, Inc. v. Skurat, 250 Conn. 927, 738 A.2d 657 (1999). On appeal, this court concluded that the one year limitations period prescribed by § 12-119 was inapplicable to the plaintiffs action because the assessment value of the property was not at issue and because the plaintiff did not own the property on the date of the October 1, 1991 assessment. Interlude, Inc. v. Skurat, 253 Conn. 531, 541, 754 A.2d 153 (2000). We therefore reversed the judgment of the Appellate Court and remanded the case to that court for consideration of the plaintiffs claim that it was entitled to reimbursement for the taxes it had paid to the city under protest. See id.

On remand, the Appellate Court, with one judge dissenting, reversed the judgment of the trial court and concluded that the plaintiff was entitled to full reimbursement of all property taxes it had paid subsequent to its acquisition of the property. Interlude, Inc. v. Skurat, 67 Conn. App. 505, 515, 787 A.2d 631 (2002). Specifically, the Appellate Court framed the issue as whether the statutory exemption, which provides for reimbursement of taxes paid by the tax-exempt entity “for a period subsequent to [the acquisition] date”; (emphasis added) General Statutes § 12-81b; “applies only to taxes assessed after the exempt entity acquired the property or to all taxes billed by the [city] after the exempt entity acquired the property.” (Emphasis in original.) Interlude, Inc. v. Skurat, supra, 67 Conn. App. 509. The Appellate Court effectively concluded that the term “period” in § 12-81b refers to any period after acquisition for which property tax installments in a fiscal year become due. See id., 511-13. The court [138]*138noted that, “[b]ecause pursuant to [General Statutes] § 7-38314 the property tax

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Bluebook (online)
831 A.2d 235, 266 Conn. 130, 2003 Conn. LEXIS 392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interlude-inc-v-skurat-conn-2003.