New Haven -- The Church of Scientology on Whalley Avenue pulled building permits to convert a former furniture store to a church in 2004, but lacking any progress, it lost its tax-exempt status and now is fighting a foreclosure action by the city that is trying to recoup taxes it says it is owed.
The church, which has a business office at 909 Whalley Ave., bought the former Hallock’s warehouse and showroom at 949 Whalley Ave. near the corner of Blake Street in 2003.
Adam Joseph, spokesman for the city, said the tax-exempt status was granted for the 2007 grand list on the basis that remodeling to accommodate a place of worship would be performed on an ongoing basis. State statutes allow this designation as long as progress is being made on the renovation.
Joseph said subsequent re-inspections by the assessor’s office “determined construction work was not continuing and exempt status was revoked” with a notice to church officials in January 2009 for the 2008 grand list, which meant taxes on the property were due on July 2009.
The amount of taxes due, according to court records, is $16,702 payable on July 1, 2009 and $44,196 as of July 1, 2010.
He said buildings used for religious purposes “are not typically re-inspected annually; only those in which such construction work is (presumably) progressing.”
Joseph said there are no other churches in the city that failed to complete proposed construction that put their exempt status in jeopardy.
After checking his records, Building Inspector Andy Rizzo said: “I terminated the building permit on Feb. 5, 2009 for lack of any work.”
On Friday, the building permit from 2004 was still attached to the door with construction material visible inside on the floor of the entryway and a second entrance gated shut. There was no one on the site.
Attorney Nicholas Mingione, who is representing the church, in his court filings said the city did not notify his client of the loss of the tax exemption until Feb. 25, 2010 and he accused the assessor and tax collector of “extracting payments by abuse of process.”
“Without warning and reasoning, the city eliminated the exemption despite absolutely no change in use. Notice was not properly given to the church and Superior Court action was the only remedy left since timing for administrative appeal had passed by the time the church was notified,” Mingione said in an e-mail.
Carol Yingling, who identified herself as a minister of the church, deferred all comments to Mingione.
Joseph said representatives of the church were in touch with the assessor’s office reportedly after receiving a tax bill at which time they were asked to provide the city with dated work orders or contractor’s invoices to support their claim that work was continuing.
Assessor William O’Brien Friday said they never presented any such documentation. He said while the church, whose headquarters is in California, may have missed appearing before the February Board of Assessment Appeals meeting, they could have sent their lawyer or filed another request for exempt property, the deadline for which is September.
O’Brien said David Ambrose, the acting assessor before he came into office, was the first to find construction progress was not being made at the site. He said the exemption subsequently was removed after O’Brien’s staff followed up. He said a loophole in the law does not allow the city to retroactively seek taxes if the conditions for the exemption were not being met.
