Segtel, Inc. v. City of Nashua
166 A.3d 213
| N.H. | 2017Background
- segTEL, a telecom owning fiber optic cables, placed attachments on utility poles/conduits located in Nashua rights of way via pole-attachment agreements with pole-owning utility providers; segTEL had no direct license from Nashua and did not contract to pay city property taxes.
- Nashua had issued pole licenses to utility providers (FairPoint, Public Service) that expressly required licensees to pay property taxes; those providers pay taxes under a 2005 ordinance amendment.
- In 2014 Nashua assessed segTEL $1,507.94 in property taxes for use of the city rights of way; segTEL’s abatement was denied and it sued for a declaratory judgment and to strike the assessment.
- The superior court granted summary judgment to segTEL, finding Nashua lacked authority to tax segTEL because segTEL never entered into an agreement consenting to taxation.
- Nashua appealed, arguing RSA 72:6 and RSA 72:23 authorize taxing users occupying city rights of way and that the pole licenses (or segTEL’s conduct) sufficed as an agreement or implied consent.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Nashua may tax segTEL’s use of city rights of way under RSA 72:23, I(a) | segTEL: Taxing requires an agreement under which the occupant expressly consents to pay property taxes; no such agreement exists with segTEL | Nashua: The pole licenses to utilities satisfy the statute because segTEL occupies the rights of way "under" those licenses (or impliedly consented by conduct) | Court: No. Taxing requires the user to be a party to (or otherwise bound by) an agreement that provides for tax payment; segTEL was not a party and did not consent |
Key Cases Cited
- N. New England Tel. Operations v. City of Concord, 166 N.H. 653 (2014) (standard for summary judgment and review)
- Verizon New England v. City of Rochester, 151 N.H. 263 (2004) (city rights-of-way interests treated as "owned" property for RSA 72:23 purposes)
- N.E. Tel. & Tel. Co. v. City of Rochester, 144 N.H. 118 (1999) (pole licenses qualify as "other agreement[s]" under RSA 72:23)
- Appeal of Reid, 143 N.H. 246 (1998) (lessees are taxed only where lease terms make lessee aware of and consenting to taxation)
- Fleet Bank-NH v. Christy’s Table, 141 N.H. 285 (1996) (nonparties to contracts are not bound by their terms)