[Vision2020] 07=12=04 Daily News: Tax exemptions revoked; Anselm House, portion of New St. Andrews shared with for-profit businesses, BOE rules

[Art Deco aka W. Fox]

Tax exemptions revoked; Anselm House, portion of New St. Andrews shared with
for-profit businesses, BOE rules


Hillary Hamm

Latah County commissioners voted today to revoke the tax-exempt status of the
Anselm House and portions of New St. Andrews College.
Commissioner Jack Nelson made motions to deny exemptions of the Christ Church
office space on Fifth Street and one of the two college parcels because the
facilities are shared with for-profit businesses.

The decision by the commissioners, serving as the Board of Equalization,
followed a Friday hearing at which Moscow residents Saundra Lund and Rosemary
Huskey provided commissioners with information challenging the church and
college's exemption. At the hearing, Deputy Prosecuting Attorney Doug Whitney
suggested commissioners evaluate the facilities on a parcel-by-parcel basis,
taking into consideration Idaho code. State code mandates tax-exempt parcels be
used exclusively for nonprofit operations.

After having the weekend to sift through documents provided by Huskey and Lund,
Nelson said he was concerned that Anselm House shares space with Canon Press.
The press reached the $1 million revenue mark in 2000 and prints books often
unrelated to the church.

"I really question whether Canon (Press) should be exempt or not," he said. "For
them doing it in an exempt process really bothers me."

Commissioner Tom Stroschein concurred.

"I think the term 'exclusive' is the key," he said.

Stroschein and Nelson also agreed to revoke the tax-exempt status of the
northern parcel of NSA because it shares a space with the for-profit Zumé Bakery
and Cafe.

Greg Dickison, the attorney representing NSA and Christ Church at the hearings,
left the courthouse immediately after the meeting finished. He could not be
reached for comment.

The board's motions to revoke tax-exempt status of the Anselm House and portions
of NSA today uproots the May 3 decision in which they analyzed facilities based
on use and chose to pro-rate exempted areas. Commissioners decided that Zumé
Bakery and Cafe, located in the college building, was taxable property, as is a
second-floor choir room and bookkeeper's office. In the Anselm House, 725 square
feet of the space rented to the Association of Classical and Christian Schools
is taxable property.

Stroschein and Nelson could not agree today on whether to revoke the tax-exempt
status of the southern parcel of NSA. Because the commissioners were split on
the decision, and Commissioner Paul Kimmell recused himself from the hearing,
the May 3 tax exemption remains in place.

Stroschein said he is concerned with the for-profit NSA bookstore in the parcel,
the lack of accreditation of the college and the fact that the school has not
filed for federal 501-C3 nonprofit status.

"It would certainly be much easier for us, and other boards, to use as a base,"
he said of the 501-C3 application. "And that's what we're looking for. That
would take out any doubt in my mind on the status of this. I think there really
is a question of doubt."

Nelson said because many colleges and high schools have bookstores, the parcel
should be tax-exempt. Nelson said he is not bothered that there are no records
of the college's accreditation from the state.

"There is a doubt about the accreditation, but I think I feel comfortable," he
said. "I think things are being taught there. They had a graduation this year,
didn't they?"

Christ Church and NSA, along with Huskey and Lund, have 30 days to appeal the
commissioners' decision. Appeals can be made to the Idaho Board of Tax Appeals
or Latah County 2nd District Court.

Huskey said she is pleased with the commissioners' decision to revoke the
exemption of the two parcels.

"We're delighted that the board decided to go with the argument that we brought
forward with the exclusive clause," Huskey said. "That was our intent from the
beginning."

Huskey said she and Lund intend to appeal the remaining tax-exempt parcel of
NSA.

"We wouldn't be here if we didn't believe it's a sound case," she said.


Hillary Hamm can be reached at (208) 882-5561, ext. 228, or by e-mail at
hhamm at dnews.com.
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