Justia Landlord - Tenant Opinion SummariesArticles Posted in Tax Law
Shaw’s Supermarkets, Inc. v. Town of Windham
Defendant Town of Windham (Town) appealed a superior court order denying its motion to dismiss the tax abatement appeal of plaintiff Shaw’s Supermarkets, Inc. (Shaw’s), for lack of standing. The Town also appealed the superior court's order granting Shaw’s requested tax abatement. The owner of the property at issue leased 1.5 acres of a 34.21-acre parcel in Windham established as Current Use. The lease, in relevant part, required Shaw’s to pay the Owner its pro rata share of the real estate taxes assessed on the entire parcel, and the Owner was required to pay the taxes to the Town. If the Owner received a tax abatement, Shaw’s was entitled to its pro rata share of the abatement. In 2017, Shaw’s was directed by the Owner to pay the property taxes directly to the Town, and it did. Shaw’s unsuccessfully applied to the Town’s selectboard for a tax abatement and subsequently appealed to the superior court. The Town moved to dismiss, arguing that Shaw’s lacked standing to request a tax abatement on property it did not own. Finding the superior court did not err in finding Shaw's had standing to seek the abatement, or err in granting the abatement, the New Hampshire Supreme Court affirmed the superior court's orders. View "Shaw's Supermarkets, Inc. v. Town of Windham" on Justia Law
G4, LLC v. Pearl River County Board of Supervisors
G4, LLC, entered into a lease in 2009 with the City of Picayune, Mississippi, for land on the grounds of the Picayune Municipal Airport. After the Pearl River County Board of Supervisors assessed ad valorem taxes on the leased land, G4 paid the taxes under protest and petitioned the Board for a refund and for a refund of taxes it had paid on lots in the Tin Hill subdivision. The Board denied G4’s petition, and G4 appealed to the Circuit Court of Pearl River County, which affirmed. G4 appealed, asserting that, according to the Mississippi Supreme Court’s decision in Rankin County Board of Supervisors v. Lakeland Income Properties, LLC, 241 So. 3d 1279 (Miss. 2018), it was automatically exempt from paying ad valorem taxes on the airport property. The Supreme Court agreed, reversed and remanded the circuit court’s decision that affirmed the Board’s refusal to refund the airport property taxes. The Court affirmed the circuit court’s decision that G4 was not entitled to a refund of taxes paid on the Tin Hill subdivision lots. View "G4, LLC v. Pearl River County Board of Supervisors" on Justia Law
Kuzmich v. 50 Murray St. Acquisition LLC
The Court of Appeals reversed the decision of the Appellate Division reversing the judgment of Supreme Court granting summary judgment in favor of Plaintiffs, individual tenants of rented apartments owned by Defendants, on their complaint seeking a declaration that their apartments were subject to rent stabilization, holding that apartments in buildings receiving tax benefits pursuant to N.Y. Real Prop. Tax law (RPTL) 421-g are not subject to luxury deregulation.Plaintiffs' apartments were located in building receiving tax benefits subject to RPTL 421-g. Defendants argued that Plaintiffs' apartments were exempt from rent regulation under the luxury deregulation provisions added to the Rent Stabilization Law (RSL), Administrative Code of City of New York 26-504.1, as part of the Rent Regulation Reform Act of 1993. The Appellate Division agreed and granted Defendants' motions for summary judgment to the extent of declaring that Plaintiffs' apartments were properly deregulated and were not subject to rent stabilization. The Court of Appeals reversed, holding that Plaintiffs' apartments were not subject to the luxury deregulation provisions of the RSL. View "Kuzmich v. 50 Murray St. Acquisition LLC" on Justia Law
Notestine Manor, Inc. v. Logan County Board of Revision
Notestine, a nonprofit corporation with 26 U.S.C. 501(c)(3) status as a charitable institution, owns the 11-unit residential rental property developed as low-income housing under 12 U.S.C. 1701q. Construction costs were $1.5 million. The federal capital advance was $1.3 million. The “project rental assistance” contract requires tenants to be at least 62 years old and have income under 50 percent of the area median. Rent is tied to tenant income at $407 per month, including utilities, with any overage payable to HUD. Tenants pay up to 30 percent of their adjusted gross income on rent, with HUD subsidizing any difference. Capital Advance Program Use and Regulatory Agreements were recorded on title, in effect at least 40 years from 2013, unless released by HUD. An auditor valued the property at $811,120 for 2013, a Logan County reappraisal year. Notestine sought a reduction, arguing that the building's value was $165,000, based on actual rent and expenses. The Board of Tax Appeals adopted the opinion of Notestine’s appraiser, who valued the property at $75,000. The Supreme Court of Ohio affirmed. Although market rents and expenses constitute a “rule” when valuing low-income government housing generally, that rule is presumptive, not conclusive. In this case, the rents are minimal, and federal subsidization is strictly controlled by HUD-imposed restrictions on the accumulation of surpluses. There is no evidence that any adjustment from contract rent to market rent would eliminate the “affirmative value” of government subsidies. View "Notestine Manor, Inc. v. Logan County Board of Revision" on Justia Law
Canton v. Cadle Props. of Conn., Inc.
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
Alliant Techsystems, Inc. v. Salt Lake Bd. of Equalization
At issue in this appeal was the Privilege Tax Statute, which provides that an entity may be taxed on the privilege of beneficially using or possessing property in connection with a for-profit business when the owner of that property is exempt from taxation. But the tax may not be imposed unless the entity using or possessing the exempt property has "exclusive possession" of that property. Alliant Techsystems (ATK) challenged the imposition of a privilege tax on its use of government property. The district court granted summary judgment against ATK, concluding that ATK had "exclusive possession" of federal government property because there was no evidence that anyone other than the government, the landowner, had any possession, use, management or control of the property. The Supreme Court reversed, holding (1) under the Statute, "exclusive possession" means exclusive as to all parties, including the property owner, and thus, exclusive possession exists when an entity has the present right to occupy and control property akin to that of an owner or lessee; and (2) because the record indicated disputed material facts regarding ATK's authority to control the government property, summary judgment was inappropriate in this case.View "Alliant Techsystems, Inc. v. Salt Lake Bd. of Equalization" on Justia Law
Katzman v. Essex Waterfront Owners LLC, et al.
Plaintiff appealed from a judgment of the district court granting defendant's motion to dismiss her complaint. On appeal, plaintiff principally contended that the dismissal of her claim brought pursuant to section 7434 of the Internal Revenue Code, a provision that created a civil damages remedy for the willful filing of fraudulent "information return[s]," was in error. The court held that plaintiff's allegations of an intentional failure to file required information returns did not state a claim under this provision, which by its terms required an allegation that a fraudulent information return was willfully filed by defendant. Accordingly, the court affirmed the district court's judgment.View "Katzman v. Essex Waterfront Owners LLC, et al." on Justia Law