[Vision2020] IBTA Decisions

Sun Jun 4 10:18:19 PDT 2006

Rose, Saundra, et al,

The problems of unfair/unbalanced taxation that you have exposed are but a tip of the iceberg.

Here is the problem of granting tax-exemptions (income, property, sales, etc) to so-called non-profit organizations:

Whenever one person, a group of persons, or an organization is given preferential tax treatment, the rest of us must make up the difference with our tax payments.  Those non-profits specially favored with no taxes use that money that they do not pay (and the rest of make up for by paying) to further the goals of their organization.  In other words, those of us taxed are involuntarily paying for the pursuance of any non-profit's goals.  Further, those of forced to contribute to these organizations have no way to influence the way such contributions are used.

None of us probably favor the goals of all organizations granted this special treatment.  

For example, I resent having to pay for the Hertiage Foundation pursuance of their goals and I am sure that there are members of the Heritage Foundation that resent being forced to pay for the activities of the Brookings Institute.  [Use your imagination to think of all the non-governmental, non-profit organizations whose activities you are being forced to subsidize and whose activities conflict with your ethical/political/social outlook and whom you would not choose to support had you the personal freedom/discretion not to, for example.]

This is a clear violation of personal freedom to choose what ideals/activities to support with our own money.  It is also inconsistent with free-enterprise philosophy which directs that any non-governmental organization depend on their success in the marketplace to finance their own activities.

It would be foolish to expect any of our legislators to support the abolishment of preferential tax treatment of non-profits at this juncture.  This is partially because we as citizens and they as legislators are basically ignorant of the cost to each taxpayer of these gifts and the financial and ethical impact on those not so gifted.

A start to curing this ignorance and a start towards better tax laws with respect to non-profits would be to pass a set of laws mandating that the various taxing entities be required to determine and to publish the amount of taxes lost under the various preferences granted to each non-profit and the general categories of nonprofits as defined by the tax law.  As part of these reports, the financial impacts on classes of individuals should also be calculated so that we can understand the financial impact on ourselves as individual taxpayers.  

If, for example, knowing the amount it cost for each individual to grant tax free status to religious organizations (especially those whose teachings are in opposition to our own personal beliefs) may influence the public's and eventually the legislators' willingness to continue these free rides to non-governmental organizations and to continue violating our personal freedom which such forced subsidies totally abrogate.

Abolishing tax-free rides for nonprofits would not necessarily diminish the total amount of money collected now by these organizations.  But by making contributions/support/etc voluntary and dependent upon the ideals and activities of each organization, there would probably be some shift driven by the marketplace and considerations of general worth in the distribution of that money.  Monies which individuals are not being forced to fork over could be re-directed to the non-governmental organizations of the individual's own choice.

In the long run, abolishing tax-free status would not only restore personal freedom of what to do with the discretionary funds we choose to disburse, but will force those organizations we are now being forced to support (without our having any way to influence their activities) to operate much more openly, intelligently, legally, and effectively.

Wayne A. Fox
1009 Karen Lane
PO Box 9421
Moscow, ID  83843

(208) 882-7975
waf at moscow.com

----- Original Message ----- 
From: DonaldH675 at aol.com 
To: vision2020 at moscow.com 
Sent: Saturday, June 03, 2006 6:11 PM
Subject: [Vision2020] IBTA Decisions

The IBTA has announced their decisions on property tax issues related to Logos School, New St. Andrews, and the Nuart Theatre aka Community Christian Ministries.  The decisions will be posted (it is hoped) within the next week (and I urge those interested to take the time to review them) at: http://www2.state.id.us/bta/Appeal%20Lists/appealslist2005.htm.

The IBTA ruled in favor of all three entities.  I am disappointed in their findings but I am appreciative of the opportunity to express our concerns and make our arguments in a public venue.   I believe that the IBTA "Conclusions of Law" (on the Logos and NSA issues) opens the door to innumerable claims from home-schooling families and other alleged educational institutions for tax exemption on their homes or other properties.  I need hardly remind you who will shoulder the tax burden for that.

It is  significant that Logos School, NSA, and CCM have never provided independently audited financial records to the Latah County Board of Equalization or to the Idaho Board of Tax Appeals - nor have those bodies asked for or required such documentation.  In the case of NSA no financial documents have ever been provided - and they fervently protest (successfully) any suggestion that they do so.  Logos School offered a two year old self-prepared Tax Form 990.  Mr. Jim Wilson (director of CCM) provided a self-reported "budget."  (The financial documentation Mr. Wilson offered included the generalized heading "Donations." Although the Nuart housed Atlas School - a Christian, for-profit boys school, Mr. Wilson testified that he had never charged rent for that use - thus dodging any need for prorated the taxes on the property.  We subsequently learned that instead of rent, Atlas School administrators provided a monthly "donation" which of course was not identified in the lump sum accounting provided by Mr. Wilson)

I urge readers of V2020 who are receiving their property tax bills this week to contact the Latah County Commissioners and ask them to require that all entities who receive property tax exemption in this county provide, for the public record, a complete financial disclosure which is prepared and submitted by an independent, external, public accounting firm.  It is unconscionable to me that the privilege of tax exemption is extended on the basis of self-assertion of non-profit status.  And, if your property tax seems a little higher, don't forget to thank the members and associates of Wilson, Inc.

Rose Huskey

Rose Huskey

"First they ignore you, then they laugh at you, then they fight you, then you win." Mahatma Gandhi

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