Newtown Youth Academy Seeks Full Tax Exemption

By Andrew Gorosko

The Newtown Youth Academy, Inc, has filed a court appeal against the town in seeking to gain a complete property tax exemption for its sports/recreation facilities at Fairfield Hills.

Through the legal appeal dated April 20, the academy seeks to have a Danbury Superior Court judge order that the town provide a 100 percent property tax exemption to the academy.

In the legal papers, the academy, represented by attorney Francis Pennarola, states that it is a nonstock, nonprofit charitable corporation recognized by the Internal Revenue Service as a tax-exempt “501(c) 3” organization.

The legal papers state that the town assessor has placed the property’s fair market value at $8,492,519.70. Such a sum would place the real estate’s “assessed value” at $5,944,763.79. Assessed value represents 70 percent of market value.

The assessor later determined that the property was entitled to a 42 percent tax exemption, resulting in a net tax assessment value of $3,447,963 for the property, according to the court appeal.

“Given the charitable nature of the applicant, the uses of the facility, and the lease with the town, [the academy] is entitled to a 100 percent exemption and the assessment by the assessor on the assessment date was unlawful,” according to the court appeal.

The academy thus seeks to have a judge order the town Board of Assessment Appeals to exempt the academy from paying any property taxes.

 Town Assessor Chris Kelsey said April 21 that the academy filed a similar court appeal last fall. Both cases are proceeding in court, he said. The current lawsuit may be considered an extension of the previous lawsuit, he said.

Mr Kelsey said he believes that the academy is only eligible for a partial tax exemption, not a complete tax exemption.

The academy is not entitled to a full tax exemption based on its business activities, he said. A 42 percent tax emption for the academy is a suitable tax exemption for the firm, not a 100 percent tax exemption, he said.

The town has a May 11 court return date in the assessment appeal.