Groton Shopping Center Sues Over Tax Penalty

The company that owns the shopping center on Long Hill Road that houses T.J. Maxx and Goodwill has filed suit in New London Superior Court saying its assessment is unlawful and it was unfairly penalized by the town.

The company, Cedar Groton, LLC, appealed to the Board of Assessment Appeals in March, but the value was not changed, according to the court documents.  On May 2, the company filed a complaint in New London Superior Court, challenging its assessment as “grossly excessive, disproportionate and unlawful” and saying that a penalty was wrongly applied.

Every year, Groton sends out income and expense survey forms to about 350 money-producing properties like the shopping plaza, to determine what their value should be, said assessor Mary Gardner.  If the business fails to file or files late, the assessor's office has the option to penalize the company by adding 10 percent to the property's assessed value.

In the case of Cedar Groton, which Gardner said failed to file, the town took this option. Since the property was assessed at $10.4 million in 2010, the penalty added onto the assessment was $1.04 million.

About 70 accounts are penalized each year under this rule, Gardner said. A handful appeal to the Board of Assessment Appeals, she said. Challenging an assessment in court is far less common.

“This is the first that I know of,” said Gardner, who has worked in the assessor’s office since 1999. "That I can recall, ever."

The Farmington lawyer representing Cedar Groton could not be reached for comment Wednesday.