Summary
This Connecticut Appellate Court opinion addresses whether the generation of solar electricity qualifies as "manufacturing" under General Statutes § 12-81(76) for purposes of claiming a personal property tax exemption. The plaintiff appealed the trial court's denial of its motion for summary judgment, arguing that its equipment transformed tangible personal property into electricity. The appellate court affirmed, holding that legislative intent and prior precedent establish that electricity generation does not constitute manufacturing under the statute, thus rendering the plaintiff ineligible for the exemption.
Topics
Practice areas
Questions Presented
- Whether the generation of electricity constitutes manufacturing within the meaning of the personal-property-tax exemption in General Statutes § 12-81(76).
- Whether the generation of electricity alternatively constitutes processing or fabricating under the definitions incorporated into General Statutes § 12-81(76).
- Whether Public Act 92-193 abrogated or superseded United Illuminating Co. v. Groppo's conclusion that businesses engaged in generating electricity are not entitled to the applicable manufacturing exemption.
Holdings
- The generation of electricity is not manufacturing within the meaning of General Statutes § 12-81(76), and equipment used to generate electricity therefore does not qualify for that manufacturing property-tax exemption.
- The plaintiff's alternative arguments that electricity generation constitutes processing or fabricating do not establish eligibility for the exemption.
- Public Act 92-193 did not overrule or abrogate Groppo's interpretation excluding businesses engaged in electricity generation from the manufacturing exemption.
Key quotations
“We therefore conclude that the generation of electricity is not manufacturing within the meaning of § 12-81 (72) and (76), and thus that the court properly denied the plaintiff’s motion for summary judgment.” (at 23)
“We therefore conclude that the generation of electricity is not manufacturing within the meaning of § 12-81 (72) and (76)” (at 20-21)
Factual background
McHenry Solar owns personal property at a Hampton solar facility, including solar modules, inverters, racking, controls, monitoring systems, transformers, meters, switchboards, wiring, and enclosures. The equipment is used to generate solar electricity that McHenry Solar sells to Connecticut Light & Power Company. The plaintiff claimed that the equipment was machinery and equipment used for manufacturing and therefore exempt from personal property taxation under General Statutes § 12-81(76).
Procedural history
The Town of Hampton tax assessor denied McHenry Solar's request for an exemption from taxation on personal property used at its solar facility. McHenry Solar brought a tax appeal under General Statutes § 12-119 in the Superior Court and moved for summary judgment on its claim that the property qualified for the manufacturing exemption under General Statutes § 12-81(76). The Superior Court denied the motion, authorized an immediate appeal under Practice Book § 61-4(a), and the Appellate Court affirmed and remanded for further proceedings; the plaintiff's separate claim that the assessment was manifestly excessive remained pending.
Remand instructions
The case is remanded for further proceedings consistent with the opinion. The plaintiff's separate claim challenging the assessment as manifestly excessive remains pending.