General Principle of Taxation: "Taxes are levied because they are necessary to defray the expenses of government and not for the purpose of enriching the public treasury. Taxing authorities, therefore, will not be permitted to levy taxes faster than they are likely to be needed. An unnecessary accumulation of money in the public treasury is unjust, impolitic and against the law." Cities Service Co v Carter, 247 La 974,984,175 So 2d 288 [**1169] (1965); People ex rel Brenza v Morrison Hotel Corporation, 4 Ill 2d 542, 547, 123 N E 2d 488 (1954); People ex rel Kramer v Chicago, Burlington & Quincy R Co, 8 Ill 2d 382, 387, 134 N E 2d 335 (1956); 84 C.J.S., Taxation Section 352 c (3)." Caulfield v Noble, 178 Conn 81 (1979)
References:
General Statutes, Sections 7-344, 7-148, and 7-194
Chapter 9, Avon Town Charter
Superior Court decision - Holmes v Beckwith, 11 Conn Supp 215 (1942)
Superior Court decision - Feigle v Raacke, 32 Conn Supp 237 (1975)
Supreme Court decision - Caulfield v Noble, 178 Conn 81 (1979)
Supreme Court decision - Moshier v Goodnow, 217 Conn 303 (1991)
List of Correspondence:
1. May 26, 2004 e-mail to Mr Harrison specifying basis of question raised at the May 25 Budget Hearing
2. June 8, 2004 e-mail to the Board of Finance restating the original question into three related questions
3. June 10, 2004 e-mail to the Board of Finance detailing deficiencies in the budget
4. June 14, 2004 opinion of the Town Attorney (pdf file - received via e-mail on June 15, 2004, 11:24am)
5. June 15, 2004 rebuttal of Town Attorney's opinion (sent 3:24pm)
6. June 15, 2004 e-mail from Mr Harrison advising his inability to discuss the issues any further (received 3:51pm)
7. June 15, 2004 e-mail requesting Chairman of Town Council to respond to the rebuttal (sent 4:11pm)
Below are the three legal issues that were raised in my e-mail dated June 8, 2004:
1. Where does the Town derive its (statutory) authority to exclude certain items of revenue from the annual
budget? This question is in reference to the BOE Special Program Fund and the increase in Conveyance Fees.
2. When the Town ends up with a surplus of revenues at the end of the year, where does the Town derive its
authority to transfer unexpended cash balances into a surplus account? Neither the Town's Charter nor the
General Statutes (based on a layman's research and interpretation) contain any provision for the disposition of
surplus funds at the end of the year.
3. IF in fact (a big IF that depends on the answer to question #2) the Board of Finance (or the Town Council) has
no authority to transfer a surplus of revenues into a surplus account, where does the Town derive its authority to
withhold accumulated surplus funds from the calculation of the amount of the annual property tax levy?
Back to Home Page May 26, 2004 e-mail