ORDERS:
ORDER
This matter comes before the Court upon application by the
Columbia Sailing Club (the “Club”) for a property tax exemption for certain
property owned by the Club in Lexington County, SC on Lake Murray. (The Club
has surveyed the property into two separate, but contiguous, parcels and will
continue to pay property taxes on its docks and adjoining property, which the
parties agree are not used for educational purposes.) The Club originally
filed its request for property tax exemption with the South Carolina Department
of Revenue (“DOR” or “Department”) as a Fraternal Organization. This request
was denied; however, the Department has agreed to exempt the Club beginning in
2009 as an educational association under S.C. Code Ann. Section 12-37-220(B)(16)(a)
(Supp. 2007) if the Club performs as described below and provides documentation
of that performance as described below. The Club has amended its Articles of
Incorporation and Bylaws to establish itself as an educational organization
and, as such, to require such educational functions and responsibilities.
The following represents the agreement of the parties:
1. The club has agreed to
fulfill annually the certain charitable requirements contained under IRC
501(c)(3), specifically evidence of educational requirements.
2. For calendar year 2008,
the Club agrees to hold four educational events on its premises. Such events
will be publically advertised and open to the general public. These events
will include such topics as sailing, weather, hurricane preparedness,
protection against lightening and other natural disasters, navigation, nautical
racing, rules of the sea/lake/ICW, and training for The South Carolina
Department of Natural Resources (“DNR”) boater licensing. The Club may conduct
such seminars either by itself or in conjunction with other boating safety
groups such as DNR and the US Power Squadron.
3. For calendar year 2008
and each subsequent year, the Club agrees to hold a Youth Sailing Camp on the
Club Premises for youth 16 years of age and under. Such sailing camp shall be
open to the public and participants or their parents do not have to be members
of the Club or obligate themselves to become members of the club. The sailing
camp shall be offered to the participants at no cost or at a break even cost.
This event is in addition to all other educational events required herein.
4. For calendar year 2009
and each subsequent year, the Club agrees to hold five or more educational
events (plus its youth camp). These events shall be held on the premises of
the Club and documented as described in paragraph 5 below.
5. For calendar year 2008
and each subsequent year, the Club agrees to maintain detailed books and
records of its financial and educational activities for each calendar year.
Records for the prior 3 calendar years must be maintained at all times and must
be provided to the Department upon request. The records the Club must maintain
include, but are not limited to, the following:
a. Publication and/or advertisement of
the specific educational opportunities and open house events to the general
public, including the manner and frequency of advertising and a copy of any
print advertisement. Such publication and/or advertisement should be in a
newspaper of general distribution in the Lexington/Richland County area.
b. A roster of the attendees at any of
the educational opportunities or open house events offered to the general
public with a designation as to which attendees are members of the Club, or an
immediate family member of the Club member.
c. Specific evidence of the
educational content of the educational opportunity, including, but not limited
to, any printed materials distributed.
d. Detailed financial information to
include but not limited to income and expense reports, cash flow statements,
and balance sheets for each calendar year along with IRS Form 990 for each tax
year.
e. Records of regattas that the Youth
and Junior Sailing Teams have participated in, as well as a roster of the
participants.
6. For calendar year 2008
and each subsequent year, an annual scholarship will be funded and awarded each
year, in an amount not less than one thousand dollars ($1,000.00). Specific,
objective criteria must be established in writing for the awarding of the
scholarship. Such criteria must state that the scholarship may not be awarded to
members of the Club or immediate family members of Club members. The Club will
provide to the Department, upon its request, evidence that this scholarship has
been funded and awarded, including the specific, objective criteria for the
award.
7.
For calendar year 2008 and each subsequent year, the Club agrees to host an
open house at least four days per year, on its premises, for anyone interested
in learning about sailing. Such open house events will be published
in a newspaper of general circulation in the Richland/Lexington County area.
8. For
calendar year 2008 and each subsequent year, the Club agrees to sponsor and
host a Youth Sailing Team and a Junior Sailing Team. Such teams will travel to
regattas in South Carolina, North Carolina, and Georgia.
9. On or before December
31, 2008, the Club will file an amended PT 401 Application for Exemption
reflecting that the Club is requesting an exemption under S.C. Code Ann.
Section 12-37-220(B)(16)(a) (Supp. 2007).
The Department agrees to grant the Club an exemption from
property taxes for the 2009 tax year if the Club completes all requirements listed
above for the 2008 calendar year by December 31, 2008, and submits complete
documentation to the Department of such by December 31, 2008. If the
Department is satisfied that the documentation indicates that the Club has
completed all requirements described above, a property tax exemption for 2009 will
be granted within 30 days of receipt of the Club’s completed submission.
This contested case is accordingly dismissed without
prejudice to either party, and either party may petition to reopen the docket
in the event of a disagreement over whether the 2008 educational functions,
which entitle the Club to the 2009 property tax exemption, have been fulfilled.
The hearing set for September 24, 2008, is hereby cancelled.
AND IT IS SO ORDERED. |
_______________________________________
Paige J. Gossett
Administrative Law Judge
|
September 25, 2008
Columbia, South Carolina |
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We Agree: We
Agree:
_____________________________________ ___________________________________
Burnet R. Maybank, III Amelia
Furr Ruple
Nexsen Pruet South
Carolina Department of Revenue
Counsel for Petitioner Counsel
for Respondent
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