Taking Groton's Lead, Stonington Will Take State To Court

“It’s a ridiculous tax.”

First Selectman Edward Haberek Jr. did not mince words. And while he’s asked the community to approve a plan to cough up the more than $260,000 the state is demanding, the town has moved to appeal the tax bill in court, following the lead of Groton, which is in the same boat.

At issue is the state Department of Revenue sales tax bill on commercial trash collection services provided by the town. Haberek says the town owes no such tax, but has asked for a special town meeting to approve the appropriation of $262,113 from the general fund so as to halt the accrual of penalty and interest in the event the town loses its appeal. There was limited comment from the public at the Board of Selectmen meeting Wednesday, but it is anticipated the public will weigh in at the meeting next month.

Haberek said he, town staff and legislators Diana Urban and Andrew Maynard met with a state tax official late last week and the “news wasn’t good.”

“That’s why we’re going to court,” he said.

Stonington residents purchase and use the ubiquitous yellow bags – at a cost of $.75 per 15-gallon bag and $1.25 per 33-gallon bag -- for trash pickup and have for more than 14 years. One of the benefits of the pay-by-the-bag program has been to encourage residents to recycle more so they pay less for garbage. But the bags have never been taxed and the state argues they should have been. The state is seeking payment for only the past three years, all that is allowed by law, Haberek said.

Groton has found itself in the same situation and in January decided it too was being unfairly taxed, to the tune of $240,000, and said it would file an appeal.