About Forum Inc.
According to the Green County Web site, Forum's 2008 net taxes due amount to about $2,500. The SLICE property (land and improvements) value is assessed at $91,500, and lists Forum, Inc. StateLine Ice & Community Expo as the owner.
Because the property was in Forum's name on Jan. 1, it will be responsible for paying 2009 property taxes, according to state statutes.
Forum has been submitting 990 forms, "Return of Organization Exempt From Income Tax," to the Internal Revenue Service since 1999.
The forms are open to public inspection and available at Guidestar.org. (The 990s come from the IRS and the organizations themselves.)
The latest form recorded for Forum Inc. is for 2006, received by the IRS on Nov. 14, 2007.
Forum listed "operation of community ice rink" as the organization's primary exempt purpose, and describes its exempt purpose achievements as "to provide the community with an operational ice rink," with a program service expense of $143,652, on the 990 form.
The same wording is used on its 990 form for 2004, with a program services expense of $133,833.
Guidestar also lists "Monroe Hockey Association, Inc." (Monroe, Wis.) on its site. Guidestar lists it as a 501 (c)(3) public charity, but does not have any 990 forms on record. The organization may not be required to submit a 990 form.
Organizations are not required to submit 990s for several reasons, one being that they had an income of less than $25,000. Contributions and donations to the organization are still tax deductible for their benefactors.
MONROE - Should the organization that owns and operates the StateLine Ice and Community Expo (SLICE) facility on Monroe's west side be required to pay property taxes? And should it be forced to pay $14,000 in back taxes?
Those questions were debated Tuesday during a meeting of the City of Monroe's Finance and Taxation Committee, which ultimately decided to seek more information before making a decision.
From 2004 through 2007, Green County government dispersed to the City of Monroe, the Monroe and Blackhawk Tech school districts, and the state government the portion of property taxes owed from the SLICE property. Green County now wants SLICE's owners, Forum, Inc., to repay the $14,000.
"The $14,000 can't be forgiven, because that would be asking other taxpayers to pick it up," Green County Clerk Mike Doyle said Tuesday.
But Forum, Inc., attorney Gregory E. Knoke told the committee the city never should have had the SLICE property on the tax rolls to begin with. The ownership organization, he said, is tax-exempt under state statute definitions, and rent collected does not render it taxable. He asked whether a special resolution could be made "to make this go away" and twice said he'd have to file a lawsuit against the city to get the matter resolved.
Knoke said the city attorney and treasurer in 1999 labeled the property as charitable, and he's not sure why it doesn't have tax-exempt status with the city now.
"... (Just) because people don't dot their 'i's' and cross their 't's'," Knoke said.
Knoke said he filed claims for reimbursements for city and county taxes in 2005, and asked for a tax status change on Jan. 30, 2006.
"Both requests were denied without explanation," he said. "In hindsight, I should have filed a law suit back in '06."
"The IRS said they are exempt ... in place to provide hockey, and they operate as that," Knoke said.
Knokesaid the organization has paid the first half of its 2008 taxes, and he has filed a claim to have that reimbursed.
Monroe City Attorney Rex Ewald said Forum has income tax exemption, but that its 501(c)(3) status does not exempt it from paying property taxes. For the city to allow the property tax exemption would set a "very dangerous situation for precedence," Ewald said.
Doyle said he is notified of unpaid taxes and then sends letters to property owners. Doyle sent a letter to Forum in January 2004 and "got no response."
When Doyle got the group's 2005 taxes turned over to him, he contacted Knoke and said, "we have to do something about this."
An additional $4,000 in interest and $1,000 in interest also is on the county tax rolls.
In all, Forum, Inc., owes about $20,000 in back taxes, interest and penalties.
"The best the county can do," is relieve Forum of the interest and penalty charges, Doyle said.
"Maybe with '08 and forward something can be done, but for '04 through '07 (taxes), there's nothing I can do."
At issue is whether the property's tax status is based on Forum, Inc., or the Monroe Youth Hockey Association (MYHA), which fields youth hockey teams that practice and play at SLICE. Forum, filed as a benevolent association, is listed on property ownership documents. Nonprofit youth hockey organizations are specifically exempt from property taxes according to state statutes.
Forum, Inc., contends its group and the MYHA are the same. The two groups combined boards last year to become Forum-MYHA.
"It's not what they call themselves; it's what they are," Ewald said.
"What they need to do is title the property in (the name of) the Youth Hockey Association," Ewald said.
"Forum, Inc. is not the (Monroe) Youth Hockey Association," he said, "and it has to be retitled by Jan. 1, 2010, to make this go away."
Knoke said he first became aware that Forum was filed as a benevolent association, rather than a youth hockey association, about a year and a half ago.
"I learned in December of 2005. January 30, 2006, I filed a form the city provided to have exemption under section 32 [Wis. state statutes 70.11(32)]," he said.
State statute lists nonprofit youth hockey associations specifically as eligible for tax exempt status, as long as the land, buildings, and personal property is owned by and used "exclusively for the purposes of a nonprofit youth hockey association." Income from leasing the property must also be used for maintenance of the leased property.
City assessor Barbara Berget said a letter requesting additional information was sent in 2006, but was not answered.
Past president of Forum, Jon Craigo, said letters were sent and information was provided but "after a while it got dropped."
Forum-MYHA Board President Dan Moats said the board is being restructured, "things we are doing to improve our image."
"We can't afford $14,000. We're upside down," he said. "We'll get it - and soon. This is not a five-year thing."
Berget said the city might be able to raise the exemption, but not totally.
The Finance and Taxation Committee postponed making a decision until more information could be gathered, and to find out how other municipalities have handled the property tax exemption status for hockey associations.
The postponement did not ease the concerns of Moats and Craigo.
"It's too early to say. But it's a starting point, and it's a starting point in the right direction," Moats said after the meeting.
"These people exist on donations," Knoke said. "If it weren't for volunteers and donations, they'd be in trouble. It was never operated as a for-profit ... there were no reimbursements.
"I don't know how they are going to pay it. It's going to come on the backs of volunteers."
Forum, Inc. was formed by families of youth hockey members who wanted to build a place for local players to hold practice and games. About 10 years ago, they purchased 4.32 acres of land and built a building, which became the StateLine Ice and Community Expo (SLICE) at 1632 4th Avenue West. The property was annexed into the city in 1999.
At the time, the Monroe city attorney made an assessment of the property and determined it met a 94 percent property tax exemption status. The remaining 6 percent was not tax exempt.
Rex Ewald, the city's present attorney, said he does not know how the exemption was figured, but said the organization made its tax exemption claim under the benevolent association status.
Berget said she has notes showing the hours per year the facility would be used for the hockey association, which had exempt status, and used for its non-tax exempt purposes.
Those questions were debated Tuesday during a meeting of the City of Monroe's Finance and Taxation Committee, which ultimately decided to seek more information before making a decision.
From 2004 through 2007, Green County government dispersed to the City of Monroe, the Monroe and Blackhawk Tech school districts, and the state government the portion of property taxes owed from the SLICE property. Green County now wants SLICE's owners, Forum, Inc., to repay the $14,000.
"The $14,000 can't be forgiven, because that would be asking other taxpayers to pick it up," Green County Clerk Mike Doyle said Tuesday.
But Forum, Inc., attorney Gregory E. Knoke told the committee the city never should have had the SLICE property on the tax rolls to begin with. The ownership organization, he said, is tax-exempt under state statute definitions, and rent collected does not render it taxable. He asked whether a special resolution could be made "to make this go away" and twice said he'd have to file a lawsuit against the city to get the matter resolved.
Knoke said the city attorney and treasurer in 1999 labeled the property as charitable, and he's not sure why it doesn't have tax-exempt status with the city now.
"... (Just) because people don't dot their 'i's' and cross their 't's'," Knoke said.
Knoke said he filed claims for reimbursements for city and county taxes in 2005, and asked for a tax status change on Jan. 30, 2006.
"Both requests were denied without explanation," he said. "In hindsight, I should have filed a law suit back in '06."
"The IRS said they are exempt ... in place to provide hockey, and they operate as that," Knoke said.
Knokesaid the organization has paid the first half of its 2008 taxes, and he has filed a claim to have that reimbursed.
Monroe City Attorney Rex Ewald said Forum has income tax exemption, but that its 501(c)(3) status does not exempt it from paying property taxes. For the city to allow the property tax exemption would set a "very dangerous situation for precedence," Ewald said.
Doyle said he is notified of unpaid taxes and then sends letters to property owners. Doyle sent a letter to Forum in January 2004 and "got no response."
When Doyle got the group's 2005 taxes turned over to him, he contacted Knoke and said, "we have to do something about this."
An additional $4,000 in interest and $1,000 in interest also is on the county tax rolls.
In all, Forum, Inc., owes about $20,000 in back taxes, interest and penalties.
"The best the county can do," is relieve Forum of the interest and penalty charges, Doyle said.
"Maybe with '08 and forward something can be done, but for '04 through '07 (taxes), there's nothing I can do."
At issue is whether the property's tax status is based on Forum, Inc., or the Monroe Youth Hockey Association (MYHA), which fields youth hockey teams that practice and play at SLICE. Forum, filed as a benevolent association, is listed on property ownership documents. Nonprofit youth hockey organizations are specifically exempt from property taxes according to state statutes.
Forum, Inc., contends its group and the MYHA are the same. The two groups combined boards last year to become Forum-MYHA.
"It's not what they call themselves; it's what they are," Ewald said.
"What they need to do is title the property in (the name of) the Youth Hockey Association," Ewald said.
"Forum, Inc. is not the (Monroe) Youth Hockey Association," he said, "and it has to be retitled by Jan. 1, 2010, to make this go away."
Knoke said he first became aware that Forum was filed as a benevolent association, rather than a youth hockey association, about a year and a half ago.
"I learned in December of 2005. January 30, 2006, I filed a form the city provided to have exemption under section 32 [Wis. state statutes 70.11(32)]," he said.
State statute lists nonprofit youth hockey associations specifically as eligible for tax exempt status, as long as the land, buildings, and personal property is owned by and used "exclusively for the purposes of a nonprofit youth hockey association." Income from leasing the property must also be used for maintenance of the leased property.
City assessor Barbara Berget said a letter requesting additional information was sent in 2006, but was not answered.
Past president of Forum, Jon Craigo, said letters were sent and information was provided but "after a while it got dropped."
Forum-MYHA Board President Dan Moats said the board is being restructured, "things we are doing to improve our image."
"We can't afford $14,000. We're upside down," he said. "We'll get it - and soon. This is not a five-year thing."
Berget said the city might be able to raise the exemption, but not totally.
The Finance and Taxation Committee postponed making a decision until more information could be gathered, and to find out how other municipalities have handled the property tax exemption status for hockey associations.
The postponement did not ease the concerns of Moats and Craigo.
"It's too early to say. But it's a starting point, and it's a starting point in the right direction," Moats said after the meeting.
"These people exist on donations," Knoke said. "If it weren't for volunteers and donations, they'd be in trouble. It was never operated as a for-profit ... there were no reimbursements.
"I don't know how they are going to pay it. It's going to come on the backs of volunteers."
Forum, Inc. was formed by families of youth hockey members who wanted to build a place for local players to hold practice and games. About 10 years ago, they purchased 4.32 acres of land and built a building, which became the StateLine Ice and Community Expo (SLICE) at 1632 4th Avenue West. The property was annexed into the city in 1999.
At the time, the Monroe city attorney made an assessment of the property and determined it met a 94 percent property tax exemption status. The remaining 6 percent was not tax exempt.
Rex Ewald, the city's present attorney, said he does not know how the exemption was figured, but said the organization made its tax exemption claim under the benevolent association status.
Berget said she has notes showing the hours per year the facility would be used for the hockey association, which had exempt status, and used for its non-tax exempt purposes.