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Troop incorporates as non-profit, then billed $3K in personal property taxes.


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Arlington, VA:

Local Methodist Church stopped sponsoring its BSA troop, however the troop can still use church facilities. The troop decided to incorporate as a nonprofit.

Unlike locally exempt churches, museums, the YMCA and similar religious groups, the troop didn’t realize was that getting 501(c)(3) status and federal tax-exempt status did not protect it from state tax code or Arlington’s personal property tax - $3000 personal property tax bill on its vans!

A member of the troop , Griffin Crouch ( I believe he is a recent Eagle Scout?) brought to matter to the Arlington County Board

“We have discussed the matter with our Commissioner of Revenue (COR), and although we are prohibited under state law from discussing the details of a particular taxpayer’s liability, the COR has confirmed that as a general matter, personal property belonging to a federally income-tax-exempt 501(c)(3) entity is subject to the personal property tax in Arlington with a few limited exceptions,” Arlington County spokeswoman Jessica Baxter told ARLnow.

“It seems wrong a scout troop has to pay that because it’s being sponsored by a non-religious nonprofit rather than a church,” Crouch said. “We still help the church and it considers us a part of its social justice ministries.”

Board Chair Katie Cristol praised Crouch for demonstrating “the best of the values of scouting: community organization, leadership and critical thinking and analysis.”

...

 

“I think you have done a great job of summarizing how it’s been a complicated series of events to get the troop here,” she said. “I wonder if there may be some opportunities for us to figure out your incorporation status, and if there are ways we can help in that regard.”

Interesting article

https://www.arlnow.com/2022/09/22/how-a-local-scouting-troop-got-saddled-with-3k-in-personal-property-taxes/

 

Edited by RememberSchiff
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