In Lee Memorial Methodist Church of Norwich, Connecticut v. City of Norwich, the Connecticut Appellate Court affirmed the trial court’s decision holding that property owned by a religious organization and leased to a for-profit daycare operator qualifies for a tax exemption under General Statutes § 12-81(14). The court concluded that the statute’s plain language requires only that the property be, first, owned by a religious organization and, second, used exclusively as a daycare facility. Because it was undisputed that the church owned the property and that the leased portion was used solely for daycare purposes, the exemption applied notwithstanding the fact that the daycare was operated by an unaffiliated, for-profit entity.
The court rejected the City of Norwich’s argument that the exemption implicitly requires the daycare to be operated by, or affiliated with, the religious organization. The court, however, declined to read additional limitations into the statute that the legislature didn’t include. It held that the trial court properly reconciled C.G.C. § 12-81(14) with § 12-88, concluding that leasing the property did not defeat the exemption so long as the use of the property, a daycare facility, remained consistent with the statute’s purposes.
For information regarding property tax matters, please contact Scott Schwefel at (860) 606-1712 or scott@shipmanlawct.com