Hartford Business Journal

15 HARTFORDBUSINESS.COM | OCTOBER 4, 2021 the housing is not actually temporary. Lawyers for Rainbow and Gilead claimed the housing offered to Valor Home patients is transitional and impermanent, as they are receiving treatment while living there and leave when they're finished. The nonprofits acknowledged that the length of a resident's stay is "entirely dependent on the individual's treatment progress." The court ultimately ruled that because relevant state legislation does not attach a time limitation to the word "temporary," it could not guess at the proper meaning and would consider the services offered by Gilead to constitute, essentially, "temporary housing." But Das pointed out that one justice noted the court's decision might have been different if it learned that patients were staying at the group home for years, or that they had used its address to register to vote, which would be signs that their residence there was not impermanent. Many similar cases were put on hold when the Supreme Court took up the Gilead dispute, Das noted, but now they're moving forward again, and there's a chance a case with a more developed factual record could come before the justices. "I wouldn't be surprised if it ended up before the Supreme Court again, or if it ended up changed by the legislature," he said. Rock and a hard place Many towns and cities have been facing a steady decline in state financial support in recent years, a reality that has forced them to look for revenues elsewhere, including through increased taxes on their own residents, or a reevaluation of the exempt status held by charitable groups. Barring a fix at the state level, the problem seems unlikely to be solved through any one court case. "It's a tough policy question," Das said. "The municipalities are losing out on revenue from these state- funded entities, but of course you still want those entities to be able to do their work. The question is, how do you balance those needs?" Michael Marafito, an attorney with Hartford-based law firm Pullman & Comley, filed an amicus brief on behalf of Rainbow Housing. Though on the opposite side of the case, he agreed with Das that the ruling is not the last word on every tax exemption case involving a nonprofit. "It's very fact-intensive, fact- specific, so it's hard to make generalizations from this one case," Marafito said. Still, many nonprofits are "breathing a sigh of relief," he explained. "The decision added some clarity," Michael Marafito Marafito said. "It gives these groups the ability to continue to put their resources toward their missions instead of having to worry about budgeting for property taxes." At the same time, however, the circumstances surrounding the lawsuit will likely further increase the level of scrutiny assessors will apply to nonprofit organizations in the future. Charitable groups will have to take extra care when completing their tax exemption application, he noted, to ensure their position is as strong as possible. Gilead's central office in Middletown. HBJ PHOTO | ZACHARY VASILE Wicked smart. Just like you. Smart Business Banking Smart Business Banking is a suite of accounts and services designed to make business banking more convenient and affordable. To us, that's what better banking is all about. To learn more or open an account, visit westfieldbank.com or call 413.568.1911 or 800.995.5734. Bank your way Online n App n In-person What better banking's all about sm . westfieldbank.com Member FDIC Business Checking n Business Lending n Digital Banking n Cash Management Services

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