GCC loses tax dispute with township

Nearly two years since it first began, the Gingellville Community Center’s dispute with Orion Township over assessed property tax has come to an end, and GCC is on the losing end.
GCC Director Pam Hutchison said the center, which is located on Waldon Road in Orion Township, went to court in Jan. to have their case heard by the Michigan Tax Tribunal, and learned of the decision on April 8.
‘The court said that although (GCC) does charitable activities…they felt we maintain a building more for the membership,? Hutchison said.
GCC’s membership is currently about 60 people. Hutchison said the center’s board of directors will meet to discuss the decision and decide how to proceed.
‘We owe a lot in back taxes,? she said. ‘So we’ll have to borrow the money to pay.?
GCC owes $26,646 for the 2004 assessment ‘immediately,? according to Hutchison, and then $19,954, plus interest, for 2005. She did not yet know what the 2006 assessment would be.
‘It’s about $50,000,? she said. ‘My membership stayed pretty optimistic throughout this, but they were surprised and very, very sad (about the decision).?
Hutchison said GCC will fulfill all obligations for the 2006 calendar year.
‘The part that’s the most sad is all the organizations that meet here…They’ll all be affected, too,? she said. ‘Who’s going to pick up the pieces, and give them free meeting space? Will the Township step up to the plate and do it??
The dispute originally began in March of 2004, when Orion Township Tax Assessor John Attwell assessed the center for 2004 property tax, although GCC argued they had tax exempt status, as a 501(c)3 organization.
Attwell said GCC received tax-exempt status in 1998, when they were moving from a building at Baldwin and Maybee Roads to their present facility.
Hutchison said GCC, in operation since 1939, has been exempt from federal income tax ‘forever.? The Township agreed not to assess property tax while the center was being moved.
In April of 2004, Attwell told The Review that for property tax exemption in Michigan, an organization must ‘bear its burden of establishing its exemption ‘beyond reasonable doubt.?
‘They have to prove beyond a reasonable doubt they qualify,? he said. ?(GCC) claims they should be exempt because they have a federal income tax exemption.?
At that time, Attwell noted that assessing GCC’s property yearly was ‘from a financial standpoint, not a wise thing to do.?
He said the property tax for the center would be $20,000 a year, of which Orion Township would collect only $400 for the general fund.
‘But from a legal standpoint, it’s the right thing to do. It’s a legal issue,? he said.
Township Supervisor Jerry Dywasuk said legal issues such as this one are just part of the landscape involved in running an effective community.
‘The process has gone on far too long,? he said. ‘But it’s not that I’m happy about anything that’s gone on.?
Dywasuk said the original decision to collect any tax was made by the board of review, not him.
‘Now I’m being criticized for not meddling,? he said, noting recent criticism has been the opposite.
Hutchison said she had just one phone conversation with Dywasuk through the whole process and asked the Supervisor about his ‘open door policy? at the April 17 board meeting.
‘I did talk to them,? Dywasuk said afterwards. ‘The problem was they didn’t like the answer.?
‘They have the right to appeal the decision if they want to,? he added.
Hutchison said she was just happy to have the issue behind the center.
‘I’m glad it’s over…move on to the next chapter,? she said, adding that GCC does not plan to appeal the decision.