The Washington County Judge shot down a University of Arkansas request for a tax exemption Monday, upholding decisions by the county assessor and equalization board.
The university owns hundreds of pieces of land in Washington County, and some are spots where classrooms could eventually go up, but in the meantime the school is leasing some of the properties out.
Most of the university's property does have tax exempt status, but the County Assessor Jeff Williams says when they lease that property out for profit, like area with shops on Garland, they lose that status.
"They're leasing the property, the university is making a profit on these organizations," Williams says. "The Walmart that's up there, the Quizno's that's up there, the TCBY... it could be homes, it could be duplexes or a multiplex home and what they're doing they're renting those just like any other landlord would do, they're renting those out receiving a profit from those."
Don Pederson, Vice Chancellor for Finance and Administration at the U of A, says the shops allow students to make more efficient use of their time, and are an important part of the school's mission.
"There is no profit motive," he says. "We would not be doing any of these activities if it were not contributing to the students abilities to be successful."
He believes the state constitution gives the university immunity to taxes.
"The state does not intend to tax itself," he says. "II think the question needs to be decided, and I would rather find out from the highest level court one way or another."
The university now has the option to appeal to circuit court, and the case could make it all the way to the Arkansas Supreme Court, potentially setting a precedent for public schools across the state.
The university owns hundreds of pieces of land in Washington County, and some are spots where classrooms could eventually go up, but in the meantime the school is leasing some of the properties out.
Most of the university's property does have tax exempt status, but the County Assessor Jeff Williams says when they lease that property out for profit, like area with shops on Garland, they lose that status.
"They're leasing the property, the university is making a profit on these organizations," Williams says. "The Walmart that's up there, the Quizno's that's up there, the TCBY... it could be homes, it could be duplexes or a multiplex home and what they're doing they're renting those just like any other landlord would do, they're renting those out receiving a profit from those."
Don Pederson, Vice Chancellor for Finance and Administration at the U of A, says the shops allow students to make more efficient use of their time, and are an important part of the school's mission.
"There is no profit motive," he says. "We would not be doing any of these activities if it were not contributing to the students abilities to be successful."
He believes the state constitution gives the university immunity to taxes.
"The state does not intend to tax itself," he says. "II think the question needs to be decided, and I would rather find out from the highest level court one way or another."
The university now has the option to appeal to circuit court, and the case could make it all the way to the Arkansas Supreme Court, potentially setting a precedent for public schools across the state.
More News
-
OK Death Toll Revised, President to Speak at 9:00am
NEAR OKLAHOMA CITY--President Obama is set to speak on the diasaster in Oklahoma at 9:00am. Meanwhile, the medical examiner's office has revised the death toll...
Read More» -
101 Survivors Found Overnight Amid OK Tornado Rubble
MOORE, OK-- Just in this morning, 101 people, found overnight, in the aftermath of the tornado that tore through Oklahoma.
Read More» -
Tornado Tears Through OK, Dozens Killed, Miles of Debris
OKLAHOMA CITY, OK -- An enormous tornado roared through the Oklahoma City suburbs, killing at least 51 people, including 20 children Monday.
Read More» -
VIEWER PICS: May 20, 2013 Storms
During Monday's storms our weather team received dozens of pictures and reports from our viewers, check it out!
Read More» -
PROGRAMMING NOTE: The Voice, Revolution and Goodwin Games Re-Air Times
We brought you extended weather coverage during Monday's storms. Here's a look at when you can catch the pre-empted primetime programming on FOX and NBC.
Read More»
Page 7 of 6765
©1998 - 2013 Nwahomepage.com
Nexstar Broadcasting, Inc.
All Rights Reserved
Nexstar Broadcasting, Inc.
All Rights Reserved