J.C. Penney Wants to Shave Millions Off Its Tax Bill

One of the town's largest taxpayers is disputing its most recent property tax assessment, but the town's director of assessment and collections says the process is pretty standard for both large businesses and home owners in the year immediately following a property tax revaluation, and that the case is just one of hundreds currently being heard by the town's Board of Assessment Appeals. 

By state statute, municipalities are required to revalue properties every five years. Manchester just completed its latest revaluation, which tends to prompt many residents and businesses to appeal their assessments in the year immediately following a revaluation, as they know they will be stuck with the assessment figure for the next five years. 

This year, one of those businesses that has challenged its revaluation figures is , which owns and operates a massive distribution warehouse on Tolland Turnpike and a large retail store inside the mall. J.C. Penney was the town's second largest taxpayer on the , with a total value of $72,759,6873. 

John Rainaldi, the town's director of assessment and collections, said that the values of J.C. Penney's two properties under the latest revaluation came to $47.475 million for its distribution warehouse at 339 Tolland Tpke. and $9.6 million for its retail store at the mall. 

But the nationwide retailer recently challenged both those figures before the town's Board of Assessment Appeals. 

J.C. Penney Properties was seeking its $47.475 million assessment on its warehouse property lowered to $36 million, and the $9.6 million assessment on its retail sore lower to about $5.4 million, according to Rainaldi, a difference of almost $14 million. 

Rainaldi said it is fairly typical for large businesses or corporations like J.C. Penney to challenge revaluation figures, and that most even employ attorneys or legal consultants specifically for the purpose. 

"All the mall anchors challenge their assessments," Rainaldi said. 

Both requests for lowered assessment by J.C. Penney were heard by the Board of Assessment Appeals at its March 14 meeting, and both were unanimously rejected 6-0. The board cited "insufficient evidence" in both cases. 

Had the requests been granted, the lowered assessments could have had a significant impact on the town's overall grand list, the total list of taxable property in Manchester. 

Rainaldi said J.C. Penney Properties, or any real estate owner in town that is not satisfied with the outcome of an assessment appeal, has the right to challenge the findings in court for a period of up to two months.  

"We're still a long way away from these appeals being settled," Rainaldi said. "This is the way revel works. They always come in with a number significantly lower, and we fight it out in court. We generally do quite well there." 

Rainaldi said the Board of Assessment Appeals is in the process of hearing more than 350 requests for assessment adjustments, which could take them through April. 

"Most of the commercial ones are the same ones we saw in 2006 and 2000," he said of the appeals.