Electric Boat moves ahead of Pfizer as town’s top taxpayer

— Electric Boat is now the town’s top taxpayer, jumping ahead of Pfizer, which is now the second-highest taxpayer.

The town’s grand list of taxable property in 2023 increased by 1.2%, or $54.6 million, to $4.7 billion.

Assessor Mary Gardner said most of the changes in real estate and personal property come from the expansion at Electric Boat.

While most of Electric Boat’s new assets are receiving tax exemptions under two state programs, the submarine manufacturer’s expansion has increased the grand list’s industrial real estate and personal property categories, Gardner said.

Electric Boat’s new South Yard Assembly Building was completed and made it onto the 2023 grand list, Gardner said. Under the state’s Enterprise Zone program, 80% of the real estate taxes are exempt for five years. The town will absorb half of the exemption, and the state is supposed to reimburse Groton for the other half.

Another new Electric Boat project, the extension of a pier, is fully taxable, though Gardner said she expects the company to apply for the Enterprise Zone program for 2024.

With the construction of new buildings, Gardner said Electric Boat also is receiving exemptions for business personal property assets under the state’s Manufacturing Machinery and Equipment Tax Exemption.

Gardner said this is the first time since the mid-1980s that Electric Boat is the town’s top taxpayer.

She said personal property, such as equipment, depreciates every year, which explains Pfizer’s lower assessment this year than the previous year.

Overall, the town’s total net real estate category increased by 0.5% to $4.1 billion. Personal property increased 18% to $303 million. The motor vehicle category decreased 4.5% to $297.6 million.

Gardner said the decrease in the motor vehicle category comes as market values on cars are starting to drop, after increasing over the last few years due to COVID-19 pandemic-related shortages of chips and manufacturers’ inventory.

Gardner said she hopes a bill, H.B. 5172, passes in the General Assembly, which would help stabilize values for the motor vehicle lists.

The 2023 numbers are before adjustments due to the Board of Assessment Appeals process.

The town’s top 10 taxpayers are:

1. Electric Boat, $406.2 million

2. Pfizer Inc., $294.2 million

3. Merion Group LP (Ledges Apartments), $43.8 million

4. Groton Development Association LTD (Country Glen Apartments), $30.7 million

5. Elk La Triumph (La Triumph Apartments), $21.8 million

6. Exit 88 Hotel LLC (Marriott Hotel), $20.5 million

7. Connecticut Light & Power Co., $18.4 million

8. Winterfell Windham Falls (Windham Falls Elderly Apartments), $17.7 million

9. ECA Buligo Groton Partners LP (Groton Square Shopping Center), $16.5 million

10. Groton Estates LLC (Groton Estates Apartments), $15.8 million