Cliff Buchan

news editor

Should non-profit organizations such as The American Legion be entitled to lower property tax rates? Officials of Post 225 in Forest Lake believe so and they plan to seek property tax relief from Washington County and ask the Legislature for additional relief.

Three Post 225 representatives went before the city council Monday during its annual board of review meeting. The meeting is a chance for property owners to question and contest the assessed market value set this year for determination of property taxes in 2006.

Post 225 is contesting the market value cap on its main Post building at 355 W. Broadway Ave. and a vacant lot on the corner of Broadway and NW 3rd St. that is used for parking.

The Legion pays just under $50,000 in property taxes on its club rooms and forks out another $4600 in property taxes for the vacant lot. The fact that the taxes on the lot more than doubled troubled Post 225 Commander Ron Weiss, club manager Jim Fromm and Legion spokesperson Bob Flaherty who went before council Monday.

Along with the two parcels in question here, Post 225 also pay another $3700 in property tax on a third parcel of land to the north of its main building.

Although commercial tax rates were held flat this year, Post 225ís representatives still questioned the amount of taxes they were paying.

In their report to council, the officials said the non-profit organization is a community partner that donates its facilities to other non-profit groups in the community, helps the schools and makes generous community donations with funds that come from charitable gambling proceeds.

In a post-presentation interview, the three representatives said the charitable donations likely exceed $120,000 for all organizations that fall under the Post 225 umbrella. Hall donations alone have additional value of about $30,000 a year, Fromm said.

Flaherty, during a brief presentation to board, questioned why the Legion was taxed to the full extent when it wasnít a true commercial business.

ìWe are not a commercial business,î he said. ìWe are totally a non-profit.î

Officials of the Washington County Assessorís Office explained that discretion canít be made in determining the value of commercial property. Values are set based on the highest best use of property, regardless of use, and there are no options for a fraternal organization.

Flaherty said Post 225 was requesting a $100,000 reduction in the valuation on its main building and an appeal of the valuation set for the vacant lot which at one time housed the Bixby home and store site.

If the city council declines to take action on the requests, Post 225 will carry its appeal to the Washington County Board.

At the urging of council, Post 225 may explore a request to area state legislators to seek additional tax relief for non-profits such as the Legion. A state law change in the determination of a tax classification must be made.

In his report, Flaherty also reminded council that Legion Post was founded here in 1919 and has conducted the annual Independence Day celebration the past 80 years.

When the Post made plans to building its new facility in the 1980s, Flaherty said opportunities to build outside the main city area were passed over in order to remain near the heart of the city.

Flaherty admitted, however, Post 225 was late in appealing the valuation on its main property. When the valuation was increased from $1.4 million to $1.6 million a year ago, no one from the Legion was on hand at the board of review to protest.

Other complaints

Post 225 wasnít alone in filing complaints Monday.

About 20 property owners were on hand to question their values.

Paul Novak of Novak GM Center was one of several commercial property owners who questioned valuation levels. Novak said his main issue was a stark difference in valuation amounts on car dealerships in the Everton Park district.

He questioned why the valuation was so much higher than other dealership properties that he considered comparable. He said the determination of market value was a fairness issue and he asked for an adjustment.

A number of residential property owners turned out Monday to question the values.

Irene Nelson, a 27-year resident at 132 SW 6th St., questioned how her market value could jump from $120,200 to $128,600. In her 27 years on the block, she said she has never had a visit by an assessor.

ìIíve never seen hide nor hair of an assessor,î Nelson said. ìMy house is a converted shed.î

Nelson told council that if she could find someone to buy her home for the $128,600 she would ìtake it and run.î

In most cases, including the Legion, Novakís and Nelson, the assessorís office said they would visit with the property owners to review valuation limits to help in the process of determining if adjustments are warranted.

Top of Page

Forest Lake Times
P.O. Box 218
880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
Fax 651-464-4605