Articles Posted in New Hampshire Supreme Court

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Plaintiff The Marist Brothers of New Hampshire (MBNH) appealed several superior court orders: (1) a decision upholding the denial by defendant Town of Effingham (Town), of MBNH’s request for a charitable tax exemption, for tax year 2015, for real property; and (2) an order granting the Town’s motion in limine to exclude evidence of the tax treatment of New Hampshire youth camps other than the camp run by MBNH. When Camp Marist was not in session, MBNH rented the Property subject to this appeal: no restrictions were placed on who is eligible to rent, or how renters use, the Property. Rental proceeds were allocated to either the “regular Camp fund, the running of the Camp, or . . . to some of [MBNH’s] scholarships.” MBNH argues that the trial court erred in determining that it met none of the "ElderTrust" factors. After careful consideration, the New Hampshire Supreme Court concluded MBNH did satisfy all ElderTrust factors, reversing the trial court. View "The Marist Brothers of New Hampshire v. Town of Effingham" on Justia Law

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Plaintiff Richard Polonsky appealed, and defendant Town of Bedford (Town) cross-appealed a superior court order on the parties’ cross-motions for summary judgment as to plaintiff’s petition for injunctive and declaratory relief and to quiet title to residential property that the Town acquired by tax deed in 2011. In 2008, plaintiff inherited residential property in Bedford New Hampshire that, at that time, was assessed at approximately $300,000. Because plaintiff failed to pay his real estate taxes in 2008, 2009, and 2010, tax liens were imposed on his property for each of those years. The Town notified plaintiff before each lien was imposed. In April 2011, the Town notified plaintiff that a tax deed was to be issued. In May 2011, a tax deed for the property was issued to the Town. Plaintiff continued to reside on the property without paying taxes. In 2013, plaintiff offered to pay back taxes, but requested the Town forgive additional charges. In July 2013, the Town rejected plaintiff’s request and decided to sell the property. In December 2013, the Town notified plaintiff of its decision to sell the property and of his right to repurchase it. Plaintiff received that notice, but did not act on it. In April 2015, the Town again notified plaintiff of its intent to sell the property and of his right to repurchase. Plaintiff proposed he purchase the property for only the amount he owed in taxes and that the Town waive the remaining amounts. The Town rejected the plaintiff’s proposal. The Town then asserted that plaintiff’s right to repurchase the property had terminated because more than three years had passed since the tax deed had been recorded. Shortly thereafter, plaintiff brought this lawsuit. On appeal, plaintiff argued the trial court erred in ruling that the Town’s failure to provide timely statutory notice to him of its July 2013 “offering for sale,” as required by RSA 80:89, I (2012), did not invalidate the tax deed. Plaintiff also argued the trial court erred by failing to find that the penalty the Town may recover pursuant to RSA 80:90, I(f) (2012) (amended 2016) constituted “double taxation” in violation of the State Constitution. In its cross-appeal, the Town argued the trial court misinterpreted the three-year period set forth in RSA 80:89, VII (2012) when it determined that, although the tax deed was recorded more than three years ago, plaintiff could bring a claim for any amount the Town recovered from the property’s eventual sale in excess of the outstanding taxes, interest, costs, and statutory penalty owed (“excess proceeds”). The New Hampshire Supreme Court affirmed the trial court’s ruling rejecting the plaintiff’s claim that the tax deed was invalid, reversed its ruling construing the statutes as permitting plaintiff to recover excess proceeds from any future sale of the property, and remanded for further proceedings. View "Polonsky v. Town of Bedford" on Justia Law

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The Town of Bow (town) appealed a superior court order granting plaintiff Public Service Company of New Hampshire (PSNH) an abatement of taxes on its property in the town for tax years 2012 and 2013. PSNH owns certain special-purpose utility property in the town, including Merrimack Station, two combustion turbines, and a high-voltage regional electric transmission and distribution network. Merrimack Station consists of two coal-fired units that produce steam to rotate turbines and generators to produce electricity. The combustion turbines cannot be remotely turned on and, instead, must be physically turned on in a control room at the Merrimack Station site. At trial, the sole issue was the determination of the proper value of this special-purpose utility property for the tax years in question. Following a six-day bench trial, the trial court found PSNH's expert “testimony [to be] more credible than” the town's and, therefore, ruled that PSNH had met its burden of demonstrating that it was entitled to an abatement for tax years 2012 and 2013 with respect to the disputed property. The town moved for reconsideration, which the court denied, and this appeal followed. Finding no reversible error, the New Hampshire Supreme Court affirmed the superior court's judgment. View "Public Service Company of New Hampshire v. Town of Bow" on Justia Law

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Plaintiff segTEL, Inc. was a telecommunications company that owned and/or operated a fiber optic cable network throughout New Hampshire, including within the City of Nashua. It did not own any poles or conduits within the City, and did not have its own license from the City authorizing its occupation of the City’s rights of way. Instead, pursuant to pole attachment agreements with the utility providers, the plaintiff remitted a fee to the utility providers in exchange for the right to place its fiber optic cables on their poles and conduits. These pole attachment agreements did not require the plaintiff to pay property taxes assessed by the City. Having become aware of plaintiff’s use of the utility providers’ poles and conduits, the City in 2014 assessed plaintiff property taxes of $1,507.94 for its use of the City’s rights of way. Plaintiff applied for an abatement, which the City denied. Thereafter, plaintiff brought this action in superior court, seeking: (1) a declaratory judgment that the City was not entitled to impose the tax; and (2) to strike the City’s 2014 tax assessment. The trial court granted summary judgment to plaintiff, ruling that “[b]ecause [the plaintiff] has not entered into an agreement in which it consented to be taxed,” the City could not lawfully tax the plaintiff for its use and occupation of the City’s rights of way. The City appealed, and finding no reversible error in the trial court’s judgment, the New Hampshire Supreme Court affirmed. View "Segtel, Inc. v. City of Nashua" on Justia Law

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New Hampshire Electric Cooperative, Inc. (NHEC) filed tax abatement appeals to the Board of Tax and Land Appeals (BTLA) for 23 municipal assessments of its property that occurred in 2011 and 2012. The BTLA held a consolidated hearing over nine days between January and February 2015 regarding NHEC’s tax abatement appeals. During the hearing, NHEC presented expert witness testimony and an appraisal of NHEC’s property from George Lagassa, a certified general real estate appraiser and the owner of Mainstream Appraisal Associates, LLC. In his appraisals, Lagassa estimated the market value of NHEC’s property by reconciling the results of four valuation approaches: a sales comparison approach; an income approach, which estimated the value of NHEC’s property by capitalizing the company’s net operating income; a cost approach, which estimated the net book value (NBV) of NHEC’s property by calculating the original cost less book depreciation (OCLBD) of NHEC’s property; and a second cost approach, which estimated the value of NHEC’s property by calculating the reproduction cost new less depreciation (RCNLD) of NHEC’s property. NHEC appeals the BTLA order denying 16 of NHEC’s 23 individual tax abatement appeals regarding its property. The New Hampshire Supreme Court found no reversible error in the BTLA’s order and affirmed it. View "Appeal of New Hampshire Electric Cooperative, Inc." on Justia Law

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Plaintiff DirecTV, Inc. appealed a superior court decision denying a petition for property tax abatement for the tax years 2007, 2008, and 2009. The property at issue was located in New Hampton and used by DirecTV as a satellite uplink facility. On appeal, DirecTV argued that the trial court erred when it: (1) ruled that satellite antennas and batteries used to provide backup power constituted fixtures; and (2) determined the value of the property. The New Hampshire Supreme Court concluded after review that the antennas and batteries were not fixtures, and therefore, taxable as real estate. The Court reversed the superior court on that issue, vacated its decision on the valuation of the property, and remanded for further proceedings. View "DirecTV, Inc. v. Town of New Hampton" on Justia Law

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Respondent Town of New London (Town) appealed a superior court order granting summary judgment to petitioners Robert Carr and Raoul & Karen, LLC (Raoul & Karen), in their appeal of the Town’s denial of their request for a property tax abatement pursuant to RSA 76:16 (Supp. 2016). During the 2014 tax year, Carr owned property in the Town which he sold to Raoul & Karen. The house on the property was struck by lightning and burned to the ground on July 1, 2014, leaving only a few outbuildings on the property. As a result of the house’s destruction, the petitioners could not use it for 272 of the 365 days of the 2014 tax year. The Town assessed the house at $688,000 for that tax year. In the previous year, RSA 76:16 came into effect that provided for prorated tax assessments for buildings damaged under certain conditions. Petitioners did not apply for a proration of their property tax assessment, rather, they petitioned the Town for property tax abatement under RSA 76:16 in January 2015, six months after the home’s destruction. The Town did not dispute that petitioners filed their application for abatement under RSA 76:16 in a timely manner, but the Town denied petitioners’ application because they had not timely filed for proration under RSA 76:21. The trial court construed RSA 76:21 in petitioners’ favor, and ruled that the statute did “not limit taxpayers’ ability to apply for abatement under RSA 76:16.” The court then evaluated whether petitioners had shown “good cause” for abatement, and concluded that they had. Accordingly, the court granted summary judgment in petitioners’ favor. The Town appealed, but finding no reversible error, the New Hampshire Supreme Court affirmed. View "Carr & Town of New London" on Justia Law

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Petitioner Kadle Properties Revocable Realty Trust (Trust), challenged the dismissal of the Trust’s appeal to the New Hampshire Board of Tax and Land Appeals (BTLA), filed after respondent, the City of Keene (City), denied the Trust’s application for an educational use tax exemption. The Trust owned property in Keene that included an office building. A separate, for-profit corporation, Config Systems, Incorporated (Config Systems), rented a portion of the Trust’s office building, where it offered computer classes. The Trust did not own or operate Config Systems, but Daniel Kadle, in addition to serving as trustee for the Trust, was a beneficiary of the Trust and the sole shareholder of Config Systems. The Trust sought the exemption based upon Config Systems’s use of part of the property as a school. The Trust appealed the City’s denial of its request to the BTLA. During the BTLA hearing on the Trust’s appeal, the City moved to dismiss the appeal. The BTLA granted the City’s motion, reasoning that the property owner, the Trust, was not a school, and that Config Systems, the entity operating the school which the Trust claims qualified the property for an exemption, did not own the property. Finding no reversible error in that decision, the Supreme Court affirmed. View "Appeal of Kadle Properties Revocable Realty Trust" on Justia Law

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Plaintiff, The Bishop of the Protestant Episcopal Diocese in New Hampshire, A Corporation Sole, d/b/a St. George’s Episcopal Church (Church), appealed a superior court order denying its summary judgment motion and granting that of the defendant, Town of Durham (Town), based upon a finding that 24 spaces in the Church’s parking lot that are leased to University of New Hampshire (UNH) students were taxable. Until 2013, the Church received a religious tax exemption under RSA 72:23, III for its entire parking lot. In early 2013, the Town learned that the Church leased spaces to UNH students. At that time, the Town believed students leased 30 of the 37 parking spaces. Accordingly, after determining that the leased parking spaces were no longer exempt from taxation, the Town issued the Church a tax bill. After review of the Church’s arguments on appeal, the New Hampshire Supreme Court concluded that the Church did not meet its burden of demonstrating that the leased spaces were exempt. The Court affirmed the superior court order. View "Bishop of the Protestant Episcopal Diocese in New Hampshire v. Town of Durham" on Justia Law

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Plaintiff Signal Aviation Services, Inc. (Signal) appealed a superior court grant of summary judgment in favor of defendant City of Lebanon (City) in this action by Signal for, among other things, breach of contract. The City cross-appealed a portion of the trial court’s order interpreting the contract. Signal leased 8.91 acres at the Lebanon Municipal Airport (airport) as assignee of a Lease and Operating Agreement (LOA). The City owned the airport and was the lessor under the LOA. The LOA granted Signal the nonexclusive right and obligation to provide fixed based operator (FBO) services at the airport. In granting this nonexclusive right, the City agreed in paragraph 3M(2) of the LOA that “[a]ny other operator of aeronautical endeavors or activities will not be permitted to operate on the Airport under rates, terms [or] conditions which are more favorable than those set forth in this Agreement.” In 2006, the City increased the assessed value of the land leased by Signal, not including the improvements, resulting in a corresponding increase in Signal’s property tax liability. Signal applied for an abatement of taxes for the years 2006 and 2007. The City’s assessors denied abatement, and Signal appealed to the New Hampshire Board of Tax and Land Appeals (BTLA). The BTLA dismissed the appeals because Signal failed to present evidence of the property’s market value. Signal did not appeal that decision, bringing instead this suit, claiming, among other things, breach of contract. Its writ alleged that the City “materially breached its obligations under the [LOA] by providing more favorable and disproportionate tax assessments and taxation schemes under agreements with other entities at the Airport providing commercial aeronautical services there.” After review, the Supreme Court affirmed, having concluded that paragraph 3M(2), so far as it concerned taxation, merely obligated the City to require all other operators to pay all lawfully levied or assessed taxes. View "Signal Aviation Services, Inc. v. City of Lebanon" on Justia Law