Narragansett Electric Co. v. Minardi
2011 R.I. LEXIS 74
| R.I. | 2011Background
- Narragansett challenges the taxation of its gas service utility assets as tangible personal property under §44-5-12.1.
- Plaintiff sues 34 Rhode Island municipalities in Superior Court for declaratory and injunctive relief, arguing illegal taxes were assessed.
- Narragansett bypasses local review under §§44-5-26 and 44-5-27, seeking direct Superior Court relief as an illegal tax claim.
- Trial court grants dismissal on multiple counts, allowing one count to proceed; plaintiff withdraws the injunction count with court permission and appeals.
- Court holds that the tax remedies are exclusive and the plaintiff failed to prove the taxes were illegal, so direct relief is not available.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Can §44-5-26/27 direct appeal bypass UDJA for illegal taxes? | Narragansett may appeal directly to Superior Court for illegal taxes per §44-5-27. | Remedies are exclusive; must follow §44-5-26/27 unless illegal tax is shown. | Direct appeal not available; illegality not shown. |
| Are Narragansett's gas assets legally taxable as tangible personal property under §44-5-12.1? | Gas assets are tangible personal property to be taxed under §44-5-12.1. | Question of illegality required; court did not need to decide classification here. | Court did not find illegality to support direct relief. |
| Did the complaint state a ripe declaratory judgment action under UDJA? | UDJA independent action available for illegal tax issues. | UDJA relief not appropriate where statutory remedies exist and illegality not proven. | Not reached/unsupported because illegality not established. |
| Did the trial court lack jurisdiction to decide declaratory relief counts? | Courts may entertain declaratory actions for illegal taxes. | Exclusive remedies barred declaratory relief absent proven illegality. | Authorities limited; suit dismissed for lack of proven illegality. |
Key Cases Cited
- CIC-Newport Associates v. Stein, 121 R.I. 844 (1979) (illegal or defective assessments require strong justification)
- Ozette Railway v. Grays Harbor County, 133 P.2d 983 (Wash. 1943) (exemplary conduct for assessments)
- Murray v. Rockaway Boulevard Wrecking & Lumber Co., 277 A.2d 922 (R.I. 1971) (taxing statutes provide exclusive relief to aggrieved taxpayers)
- Tripp v. Merchants' Mutual Fire Insurance Co., 12 R.I. 435 (1879) (early principle on tax assessments and remedies)