1. ©PULLMAN & COMLEY, LLC Important Connecticut Property Tax Developments – 2004-2005 Elliott B. Pollack, Esq. Pullman & Comley, LLC 90 State House Square Hartford, Connecticut 06103 Telephone: (860) 424-4340 Facsimile: (860) 424-4370 ebpollack@pullcom.com

2. ©PULLMAN & COMLEY, LLC I.Change in real property revaluation cycle Public Act 04-2 Formerly four years Revaluations scheduled for October 1, 2003, 2004 or 2005: delays permitted until October 1, 2006

3. ©PULLMAN & COMLEY, LLC II.Notable decisions Challenge to land while accepting building value, or vice versa. Aspetuck Valley Country Club, Inc. v. Town of Weston - Country club challenges value of golf course - Does not assert overvaluation of clubhouse or other improvements - Town can assert higher value for the improvements thereby potentially justifying overall assessment - Caveat tax appealer!

4. ©PULLMAN & COMLEY, LLC II.Notable decisions (continued) Valuation of subsidized housing project –Lack of clear legal guidance in Connecticut –Cases tend to be very fact specific –Judicially approved (trial court) method for valuing Section 8 low income elderly housing complex Actual income, less Actual expenses (including real estate taxes), then Capitalize at market rate. Saranor Apartments Limited Partnership v. City of Milford

5. ©PULLMAN & COMLEY, LLC II.Notable decisions (continued) Impact of land use restrictions on value –State farm land preservation law –“Assessor improperly disregarded the restrictions on the development rights to the farmland.” –Importance of title/land record research in valuation cases Ceccarelli v. Town of North Branford

6. ©PULLMAN & COMLEY, LLC II.Notable decisions (continued) Valuation of corporate headquarters –“Highest and best use.” –Use of income capitalization approach to value owner/occupied HQ -- ??? –Lack of sales transactions –Lack of rental comparables –Judicial preference for the cost approach: 30 year old building??? –Principle of substitution? How satisfied here? –Advisability of challenging tax assessments of owner/occupied HQ buildings in the future ? General Electric Company v. Town of Fairfield

7. ©PULLMAN & COMLEY, LLC II.Notable decisions (continued) Impact of government aid programs on property value –Condemnation case –Environmental contamination –Remediation costs –Availability of state economic development grant funds –Reasonable probability –Inequitable to consider contamination without availability of grant funds also on the table Northeast Connecticut Economic Alliance, Inc. v. ATC Partnership

8. ©PULLMAN & COMLEY, LLC III.Study of the Connecticut Ad Valorem Tax System –Hearings/meetings underway –Lack of uniform tax burden –Great variability of “effective” tax rates –Will we ever get out of this morass?