Blank Rome Secures Victory in Property Tax Matter for Pro Bono Client MidState Arc, Inc.
A Blank Rome State + Local Tax team successfully secured a complete victory in a property tax matter on behalf of pro bono client MidState Arc, Inc., a nonprofit organization in Connecticut dedicated to enabling people with intellectual and developmental disabilities to lead more independent and fulfilling lives. The final orders were issued on July 28, 2022.
MidState owns four residential properties for developmentally disabled individuals in the City of Meriden, Connecticut. The client was recognized as tax-exempt by the Internal Revenue Service and, historically, the properties had been treated by the city as tax-exempt properties used for charitable purposes, in accordance with the Connecticut General Statute. However, in 2020, the client was assessed for property taxes for the first time. The city’s position was that MidState’s properties provide permanent housing, and therefore did not qualify for a property tax exemption as state law only allows for temporary housing to be exempt.
The Blank Rome team convinced the city that MidState qualified for the full tax exemption and entered into stipulations to provide for the four cases related to each of the properties. The Connecticut Superior Court issued orders entering judgment, which granted full property tax exemption for the nonprofit’s four properties, resulting in a refund of taxes paid to the client.
MidState later sent the leaders of the Blank Rome team awards for their contributions on this matter.