CT Supreme Court Rules Nonprofits Are Tax-Exempt

Ruling is welcome news for community nonprofits

(Hartford, CT) – The Connecticut Supreme Court issued a ruling on Wednesday upholding a lower court decision that found the Town of Cromwell’s assessor had incorrectly denied a tax exemption to a nonprofit group home there. 

Over the past five years, many assessors in towns and cities across the state have improperly denied exemptions and levied property taxes on services that are exempt by law. Those cases prompted the court challenge. 

Wednesday’s unanimous opinion from the Court makes clear that charitable programs like group homes and other residential programs are, in fact, exempt from local property taxes. With at least 12 other appeals pending in Superior Court and countless other improper denials that nonprofits could not afford to fight, today’s ruling is welcomed by organizations across the state. 

“The Connecticut Supreme Court has issued a decision that upholds an important principle — charitable nonprofits are tax exempt and assessors should stop taxing them,” Gian Carl Casa, President & CEO of CT Community Nonprofit Alliance said. 

Casa added, “Connecticut has a long tradition of not taxing community nonprofits because they provide services on behalf of the municipal and state governments. The Court’s ruling clarifies this long-standing practice. Nonprofits provide services to some of the most vulnerable people in our communities, and their very existence makes this state a great place to live for all of our residents. We appreciate the ruling on behalf of hundreds of community nonprofits located in every city and town across the state.” 

Full text of the ruling can be found here.