(rshsdepot) New London, CT

[I95BERNIEW_@_aol.com]

From today's Day.
 
Bernie Wagenblast
 
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Union Station Owners Consider Seeking  Tax Break 


By Elaine Stoll  
Amtrak portion might have exemption under state law the owners of Union  
Station may seek tax-exempt status for the portion of the privately held Water  
Street property used by Amtrak. Todd O`Donnell, who owns Union Station with  
Barbara Timken, said Tuesday state and federal statutes exempt Amtrak and its  
renters and landlords from property taxes. Amtrak leases an undisclosed amount  
of space at Union Station.  
O`Donnell pointed to a section of the Connecticut General Statutes, stating  
that the gross earnings tax that corporations operating railroads for profit 
in  the state are required to pay annually “shall be in lieu of all other taxes 
in  this state for the year.” The same section states that property owned or  
operated by such a corporation “when not used exclusively for railroad 
purposes,  shall be assessed and taxed where it is located.”  
Amtrak, which was created as a for-profit corporation, pays gross earnings  
tax to the state, O`Donnell said Tuesday. O`Donnell said that only the portion  
of the station property not used by Amtrak — and therefore “not used 
exclusively  for railroad purposes” — is taxable.  
He also cited federal law in support of the claim that the portion of Union  
Station leased by Amtrak is tax-exempt. A Dec. 23, 2005, opinion written by a  
principal analyst at the Connecticut General Assembly`s Office of Legislative 
 Research and cited by O`Donnell interprets the federal law to mean that the 
only  way a town could tax property owned by Amtrak, a renter, landlord or 
subsidiary  is “if it did not benefit rail passenger transportation, even 
indirectly.”  
City Law Director Thomas J. Londregan and Assessor Barbara Perry said they  
will continue to review the matter but maintain that the Union Station property 
 used by Amtrak is taxable.  
“My gut reaction is that they are a private entity renting space and  
collecting money. I have not told the tax assessor to treat the property as  
nontaxable,” Londregan told the City Council on Monday night.  
To date the Union Station owners have not submitted a formal request to the  
city seeking tax-exempt status, Londregan said. “We`re not doing anything at  
this point in time other than reviewing information.”  
Assessor Barbara Perry said Tuesday that she has spoken with O`Donnell about  
the tax status of Union Station. “If he`s entitled to something, I want to 
grant  that,” she said.  
“So far, I haven`t seen anything that would make me believe it would pertain  
to him, that he would be eligible,” Perry said.  
If O`Donnell wants to appeal the city`s assessment of the Union Station  
property, he would have to wait until the grand list is finalized, when he could  
appeal to the Board of Assessment Appeals, Perry said. If O`Donnell 
successfully  sought a tax exemption on the portion of the Union Station property used 
by  Amtrak, the change would only affect future tax bills, Perry said. There  
apparently is no avenue for him to recover taxes paid in previous years.  
Perry said she did not know how many square feet of the Union Station  
property Amtrak uses, the only portion of the property O`Donnell claims is  
tax-exempt. “It`s a good portion of the first floor,” she said.  
O`Donnell declined to disclose the terms of his lease with Amtrak, including  
the specific amount of space he says is tax-exempt. “They are a substantial 
user  of the land and the building,” he said. 

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The Railroad Station Historical Society maintains a database of existing
railroad structures at: http://www.rrshs.org

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