January 18 2005
A class action lawsuit has been filed against the town of Madison, Connecticut on behalf of Madison construction companies, including The Dowler Group, Peter Smith Building Co., MJM Builders and Paul Coady Construction. The suit alleges that the town violated the state constitution and statutes when it increased permit fees in 2003 by about 50 percent. The suit claims that the fees "substantially exceed" the town's true cost of regulating building activity and that the town is unlawfully using building fees to help finance its general operations. The suit states, "Fees in excess of the amount which is necessary for offering and regulating a particular service constitute an illegal tax." (Jan-11-05)
UPDATE: OCT-24-07 Class action status granted against city of Madison. [NEW HAVEN REGISTER: CLASS ACTION GRANTED
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Last updated October 24 2007