New Haven Independent

“Railroad” Tax Break Reluctantly OK’d

by Melissa Bailey | December 5, 2008 10:41 AM | Permalink | Comments (7)

It was too late, aldermen ruled, to stop a politically connected trucking company from getting a $184,761 tax refund. But they took steps so that in the future the practice might stop.

In a meeting Thursday night at City Hall, the Board of Aldermen’s Tax Abatement Committee approved a request from the tax collector to refund back taxes to CSX Transportation.

The refund is for property on Middletown Avenue. It’s part of three CSX parcels leased by the Anastasio family. CSX argued that the property should be exempt from city taxation because it already pays the state a “railroad” tax. Click here for a back story detailing the controversy.

The refund is the first installment of a $480,903 tax refund, which the city granted in a settlement struck in February. The mayor signed the settlement, binding the city to fork over the money.

Before the meeting, Beaver Hill Alderman Moti Sandman proposed withholding the refund until the city got a second legal opinion on the matter.

Thursday, he was told it was too late to hold up the funds.

“This matter has already been settled,” John Ward, the city’s acting corporation counsel, told the panel. He cautioned aldermen that the city is legally bound to give the money back.

Ward said while “I firmly believe we are correct” in giving the property the “railroad” exemption, he had no problem with aldermen seeking a second opinion on the matter. He suggested the opinion would only regard future tax breaks, not the ones already addressed in the settlement.

Aldermen agreed with his suggestion.

Though he opposes granting the tax break, and voted against it when it came before the Litigation Settlement Committee in February, Hill Alderman Jorge Perez said aldermen have no choice but to approve the refund.

“We’re stuck,” he said.

However, moving forward, he said he’d strongly support getting a second opinion on the matter. The committee voted unanimously to approve the refund, and also to hire outside counsel to probe the matter further.

One issue that popped up during the meeting was why the matter was coming to the committee at all, if aldermen really had no choice but to approve the refund. Could they have taken a role earlier in the process, before the settlement was signed and sealed?

Perez said that was one question he hoped the outside counsel could answer.

He said hiring the lawyer would require a small investment, but “the potential for return is so big.”

The proposal now passes to the full board, set for a final vote on Jan. 5.

Also Thursday, the tax abatement panel approved an order directing the tax collector to allow people to volunteer their email addresses so that they can be notified electronically when their taxes are due.

The notification would be general, not personalized. The option would be voluntary and would not replace tax bills sent by regular mail.

Share this story

Share |

Comments

Posted by: James | December 5, 2008 11:39 AM

That's OK. We'll just build more heated bus stops and raise taxes again. That'll fix the problem. Thank god no matter how many jobs we lose to our high taxes, anti-business, pro-union, kickback-laden mentality, we'll always have heated bus stops.

The sad thing is, even if the people of town got together and voted that jackalope out of office, it would probably be too late. But that'll never happen since there are far too many people on the government dole to want change. Too many people with good-paying, no show jobs who only have to beat the street for DeStephano once every four years. Too many people hanging out on the Green while others go to work to pay their bills for the majority to ever want to change the status quo.

Posted by: City Hall Watch | December 5, 2008 11:53 AM

I need a new bumper sticker to go with my "Do Not Tow - Friend of DeStefano."

On the serious side, using a loophole to avoid taxes may be legal but in this case, it's unethical. These businesses should either be located elsewhere, or they should pay the tax they owe without pretending to be a railroad. People should think twice before patronizing any business associated with the Anastasio family including their Wooster Street restaurant or the dumpsters. I don't see them supporting the community in any way - and they clearly don't want to pay taxes even though they consume city services. It's a one way street. We're the losers.

Posted by: middletown ave resident | December 5, 2008 1:38 PM

Anastasio trucking on middletown ave do not use the railroad....how many years they were there contaminating the soil all in the back...money talks and bull...t walks in new haven when is this going to stop..how many law suits the city paid out since john destefano became mayor..new haven better wake up..TIME FOR A CHANGE....

Posted by: cedarhillresident | December 5, 2008 4:19 PM

Ohhh look this property is a railroad too. I think it should get a refund, since we are giving them away!

Posted by: cedarhillresident | December 5, 2008 4:20 PM

http://i23.photobucket.com/albums/b381/happypixie/Untitled-2.jpg

Posted by: ned | December 7, 2008 10:22 AM

Well at least the "railroad" is hauling trash out of New Haven - talk about a job for life - a Sisyphean task (or is it more like cleaning the Augean Stables?), well while we're talking about myths and tax breaks and filling peoples' heads with garbage - isn't it time to talk about New Haven's other tax free, scams and dirty businesses - the churches?

Posted by: chuck | December 9, 2008 1:17 PM

This is a give-away. It is taxable, but Ward or somebvody was afraid to litigate. Anastasio is not a railroad company and the land, once leased to a non-railroad company, becomes taxable. The court should have decided this. Instead Ward used a caase from the 1800's pertaining to shipyards and temporary storage sheds. This case should have been taken to trial. Plus, the city could have settled all the way up to the trial date and if they had no case then backed off. Before the land was added corp. council at the time agreed it was taxable. Unfortunately, that council is gone to the private sector

“Railroad” Tax Break Reluctantly OK’d

Comments

Sorry, Comments are closed for this entry

Special Sections

Legal Notices

Some Favorite Sites

Government/ Community Links

Flyerboard

Sponsors

N.H.I. Site Design & Development

NHI Store

News Feed