Cramer & Anderson secured a landmark victory with statewide implications for charitable organizations and municipalities April 24 when a New Britain Superior Court judge issued a decision in a long-running tax exemption appeal affirming that The Caring Community of CT, Inc. can rightfully claim a charitable purpose tax exemption.
Case Impact and Statewide Implications
The case, The Caring Community of Connecticut, Inc. v. Town of Colchester, centered on whether a nonprofit providing 24-hour residential care for individuals with severe mental health disorders and intellectual disabilities qualifies for a charitable purpose tax exemption under Connecticut General Statutes § 12-81(7).
The Town of Colchester argued that the organization was not “charitable” because it was nearly entirely state-funded and therefore “self-supporting.” However, the judge resoundingly rejected this argument, noting that under Public Act 22-73, the operation of such housing is deemed an “exclusively charitable purpose” regardless of the funding source.
Partner Daniel Casagrande was first retained for the case in 2016, and the recent appeals trial was successfully handled by Partner John Tower and Attorney Keith Rado.
“After 10 years of litigation and two trials, this decision is a vindication of our client’s status as a charitable entity – and the court is ordering the town to pay our attorneys’ fees and reimburse all taxes paid,” Attorney Casagrande said. “John and Keith deserve high praise for their excellent work in bringing home this critical decision.”
Key highlights of the court’s decision include:
- Vindication of Charitable Status: The decision by Judge Matthew J. Budzik confirmed that housing for persons with mental health disorders or intellectual disabilities is a protected charitable purpose by statute, writing that in 2022, the General Assembly passed Public Act (P.A.) 22-73 expressly stating that the operation of housing for persons with mental health disorders and intellectual disabilities “shall be deemed to be an exclusively charitable purpose.”
- Funding is Not a Barrier: The court clarified that receiving the majority of funding from the State (DDS or DSS) does not jeopardize an organization’s charitable status – as P.A.) 22-73 was not conditioned on funding details.
- Filings Deficiency Denied: Colchester claimed that the Caring Community failed to file appropriate forms for certain tax years, but the judge ruled that Colchester possessed all the information necessary to properly determine whether the Caring Community met the requirements of § 12-81(7).
- Reimbursement and Fees: In a complete victory, the court ordered the town to reimburse all taxes paid by the Caring Community and to pay attorneys’ fees.
This ruling provides much-needed clarity for nonprofit providers across the state, ensuring they can continue their vital work without the threat of improper municipal taxation.
Cramer & Anderson is committed to providing top-tier advocacy for nonprofits and businesses navigating complex regulatory and tax environments. For more information on our municipal and litigation services, contact Attorney Casagrande or Attorney Tower by phone at (860) 355-2631 or by email at dcasagrande@crameranderson.com or jtower@crameranderson.com.
About Attorney Casagrande
Attorney Casagrande is honored in the 2026 edition of The Best Lawyers in America for his work in Municipal Law and Litigation – Municipal.
He was also named a 2025 Connecticut Super Lawyer, marking the fourth in a row that Attorney Casagrande has been honored among Connecticut Super Lawyers for practice areas that include State, Local & Municipal law, Appellate law, Civil Litigation, and Land Use/Zoning law.
He served as outside Assistant Corporation Counsel for the City of Danbury from 1990 until being appointed Corporation Counsel by Mayor Roberto Alves following his election victory in 2023.
Attorney Casagrande has a long history of delivering successful outcomes for the City of Danbury in tax and land use cases. One signature example is Union Carbide’s 1998 appeal of the municipal tax assessment valuation of its Danbury, Conn., headquarters, equating to a $307 million market value.
In his role as outside Assistant Corporation Counsel, Attorney Casagrande squared off against a highly experienced tax attorney representing Union Carbide. The trial court upheld the City’s valuation after a 24-day trial, Union Carbide appealed, and Attorney Casagrande ultimately prevailed before the Connecticut Supreme Court, safeguarding $10 million in tax revenue for the City.
His other notable awards and honors include a 2023 Distinguished Leaders Award in the New England Legal Awards, achieving AV Preeminent status from Martindale-Hubbell, being named a Fellow of the Connecticut Bar Foundation (CBF) James W. Cooper Fellows Program, and receiving a Marvin J. Glink Private Practice Local Government Lawyer of the Year from the International Municipal Lawyers Association (IMLA) in 2019.
In 2018, Attorney Casagrande was honored as the “Giant Slayer” among Connecticut counsel as part of the Connecticut Law Tribune’s professional excellence awards.
See Attorney Casagrande’s profile page to learn more. He may be reached by phone at (203) 744-1234 or by email at dcasagrande@crameranderson.com.
About Attorney Tower
Attorney Tower is included in the 2026 edition of The Best Lawyers in America for his work in Municipal Law and Litigation – Municipal.
In addition to this recognition, Partner Tower was also selected for the 2025 Connecticut Super Lawyers list for his work in State, Local, and Municipal law. He also has won a Distinguished Leaders award from the Connecticut Law Tribune (CLT) as part of its annual statewide Professional Excellence Awards.
Attorney Tower focuses primarily on Civil Litigation and Municipal Law. He has been with the firm since 1994, becoming a partner in 2000. To learn more, see his profile page. Attorney Tower may be reached by email at jtower@crameranderson.com and by phone at (860) 355-2631.
About Attorney Rado
Attorney Keith Rado joined the firm as an Associate in August 2025 after receiving his Juris Doctor (JD) degree from the University of Houston Law Center. He works with Partners Joseph Mortelliti, Dan Casagrande, and John Tower on Litigation and Municipal Law matters.
See Attorney Rado’s profile page to learn more. He may be reached by phone at (203) 744-1234 or by email at krado@crameranderson.com.
About Cramer & Anderson
Cramer & Anderson provides sophisticated legal services, close to home, with regional offices in New Milford, Litchfield, Danbury, and Ridgefield. For more information, see the firm’s website or call the flagship office in New Milford at (860) 355-2631.