City checks into BHS association’s status - Sept. 22, 2011
By Gillian Graham
Staff Writer
Biddeford city officials have asked the association that owns Waterhouse Field to clarify its status as a nonprofit organization.
In a Sept. 8 letter to the Biddeford High School Alumni Association, city Finance Director Curt Koehler said the group is not listed as a nonprofit organization with the Internal Revenue Service or Maine Bureau of Corporations.
If the organization is not a nonprofit it may be subject to property taxes, Koehler said.
A deed shows the parcel of land known as Waterhouse Field was conveyed to Biddeford High School Field Association in 1929, Koehler wrote in the letter. The field has been leased to the city since 1973. The city is responsible for upkeep and improvements to the field, he said.
Association Treasurer Dana Peck, a selectman from Arundel, said the organization exists “just to maintain ownership of the field.” He said association directors are trying to sort out the tax-exempt status, which they thought was in place.
“I’m surprised as much as anyone else,” he said. “This took us by surprise.”
Koehler said the association’s status came to light while he was updating information on city-owned property. The assessor’s office incorrectly lists Waterhouse Field as city property, he said.
If the association does not have tax-exempt status, “as owner of the property, should be subject to property tax levied by the city, which, under the lease, we would be paying to ourselves,” Koehler wrote in the letter. He said the city has not budgeted for those taxes. As of press time Koehler couldn’t not provide information about how much taxes would be.
The parcel, including the buildings, is appraised at $939,000, according to city assessing records.
Koehler said he sent the letter to get clarification about the association’s status as a nonprofit and was not accusing the organization of any wrongdoing. He said the field “serves a vital role in the community.”
“All we’re trying to do is get clarification. We’re not after the property,” he said.
Peck said the association’s directors will meet as soon as possible to figure out the status because “everyone’s impression was that we are tax-exempt.”
Staff Writer
Biddeford city officials have asked the association that owns Waterhouse Field to clarify its status as a nonprofit organization.
In a Sept. 8 letter to the Biddeford High School Alumni Association, city Finance Director Curt Koehler said the group is not listed as a nonprofit organization with the Internal Revenue Service or Maine Bureau of Corporations.
If the organization is not a nonprofit it may be subject to property taxes, Koehler said.
A deed shows the parcel of land known as Waterhouse Field was conveyed to Biddeford High School Field Association in 1929, Koehler wrote in the letter. The field has been leased to the city since 1973. The city is responsible for upkeep and improvements to the field, he said.
Association Treasurer Dana Peck, a selectman from Arundel, said the organization exists “just to maintain ownership of the field.” He said association directors are trying to sort out the tax-exempt status, which they thought was in place.
“I’m surprised as much as anyone else,” he said. “This took us by surprise.”
Koehler said the association’s status came to light while he was updating information on city-owned property. The assessor’s office incorrectly lists Waterhouse Field as city property, he said.
If the association does not have tax-exempt status, “as owner of the property, should be subject to property tax levied by the city, which, under the lease, we would be paying to ourselves,” Koehler wrote in the letter. He said the city has not budgeted for those taxes. As of press time Koehler couldn’t not provide information about how much taxes would be.
The parcel, including the buildings, is appraised at $939,000, according to city assessing records.
Koehler said he sent the letter to get clarification about the association’s status as a nonprofit and was not accusing the organization of any wrongdoing. He said the field “serves a vital role in the community.”
“All we’re trying to do is get clarification. We’re not after the property,” he said.
Peck said the association’s directors will meet as soon as possible to figure out the status because “everyone’s impression was that we are tax-exempt.”
Comments