American Legion post suing to keep tax-exempt status
Posted on Friday, October 12, 2007
BENTONVILLE — American Legion Post 100 is seeking to keep its tax-exempt status.
The Rogers legion filed suit Wednesday in Benton County Court seeking to remain exempt from property taxes. A Rogers attorney filed the suit on behalf of the American Legion post against Benton County Assessor Bill Moutray and Benton County Tax Collector Greg Hoggatt.
The post was exempt from paying property taxes, but the Benton County Assessor has assessed the legion’s taxes for $ 1, 749. 45. The suit claims Post 100 had been excluded from paying property taxes during its 90-year existence but learned they were assessed property taxes for 2006, according to the suit.
Last month, several veterans organizations protested the loss of their tax-exempt status.
According to Article 16, Section 5 B of the Arkansas Constitution, only the following types of property are exempt from taxation:
• Churches;
• Cemeteries;
• School buildings;
• Libraries and trustees; and
• Buildings, grounds and materials used exclusively for public charity.
The post states in the suit that it is a nonprofit corporation that uses its property — building and grounds — exclusively for public charity.
The issue began in April 2005 when the Benton County Tax Assessor’s Office sent out approximately 2, 640 questionnaires to evaluate how each organization uses its property. Twenty-three nonprofit organizations subsequently lost their property-tax-exemption status.
Valerie Brewer, office manager in the Tax Assessor’s Office, oversaw the project. She also determined that, in 20 cases, particular parcels of land were not being used for a charitable purpose. So, even though the organization might be exempt from property taxes, some of its properties — depending on the use of the property — are not.
Special Judge Wes Doss recently ruled that the Bentonville Masonic Temple Association is exempt from property taxes because it used its property exclusively for public charity.
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