May 22, 2018 - The letter below was sent to our donors and e-newsletter subscribers. It outlines a situation we're currently facing regarding the loss of our property tax exemption, and our plans moving forward. As many know, Reliance Health was not the only non-profit to lose property tax exemption in Norwich. To read the news articles that have been following this story, visit our Press page.
Dear Friend,
Recently the Norwich Tax Accessor, Donna Ralston, revoked the property tax-exemption status of many non-profits in Norwich. Reliance Health was one of the non-profit organizations affected by Ms. Ralston’s decision. Unfortunately, we never received notice that our filing status had been revoked. By the time we had discovered that our Norwich properties, with the exception of one, were subject to taxation we had already missed the window to appeal and had no choice but to seek legal counsel. We are now in the process of filing a lawsuit against the city of Norwich.
Reliance Health’s paperwork was submitted prior to the November 1st deadline. All of our properties continue to be used in a way that supports our mission to enhance health through mental wellness. We had also taken the steps necessary to ensure that the portions of our 2 Cliff Street property that are rented to the State of CT Parole office and the Norwich Vet Center were included on the tax roll.
We do rent out apartments at two of our properties. Rental income received is enough to maintain these properties and support the tenants living in them. The rents at these properties are below market rate, ensuring low income individuals experiencing mental health barriers can live in an affordable and supportive environment. We do not make a profit on these properties. As a non-profit organization, Reliance Health does not generate any profits. All dollars received support our mission.
Taxing organizations like Reliance Health takes funding away from our mission. We will be fighting Donna Ralston’s decision to overturn our property tax-exemption. Despite the outcome, we remain a 501(c)(3) federally recognized tax-exempt company. Donations made to support our mission are, and will continue to be, tax-deductible.
Ms. Ralston’s decision is challenging for us. We are committed to Norwich and do our best to work with the city that we’ve called home for over 40 years. We appreciate the outpouring of support we have received regarding this issue and are confident that we can reach an amicable solution that does not divert funding away from our mission.
Respectfully,
Jack Malone - Reliance Health Board President
David Burnett - Reliance Health Chief Executive Officer