In a ruling with potentially major implications, the Board of Tax Appeal for the state of Washington has determined that property owned by Trust for Public Land (TPL) in Lyle is not exempt from paying property taxes.
"The Board of Tax Appeals has ruled that TPL's Lyle Point property is no longer exempt from paying property taxes," said Klickitat County Prosecuting Attorney Tim O'Neill. "This is something the county initiated. We appealed the determination that it was tax exempt."
Trust for Public Land purchased the 35-acre Lyle site in March 2000, and has indicated that it plans to keep the land in an undeveloped state.
The ruling, issued June 12, is the tax board's final decision in Klickitat County v. State of Washington Department of Revenue.
Near the beginning of a 50-page ruling, the Board of Tax Appeals decision is stated clearly:
"The issue in this appeal is whether a non-profit nature conservancy organization is exempt from property taxes with respect to a failed residential subdivision it purchased with the intent of preserving as open space park land," it read. "We conclude the property is not exempt because 1) the organization has not shown that the property is used and effectively dedicated primarily for any of the nature conservancy purposes specified in the exempting statute, and 2) the land's zoning prohibits use of the property for open space/nature conservancy purposes."
"We are happy," said County Commissioner Ray Thayer. "After the testimony from [law firm] Foster/Pepper, we felt we had a pretty good shot coming out of the case. It's always good to prevail."
The county's appeal was filed on April 13, 2001, and originated from the Klickitat County Assessor's Office. The appeal questioned a determination from the Washington Department of Revenue that TPL qualifies for a property tax exemption with respect to its ownership of Lyle Point.
The tax board's ruling clears the way for TPL's Lyle Point land to be placed on the property tax rolls of Klickitat County for assessment retroactive to 2000-2001, "for taxes due and payable in 2001-2002."
A spokesperson in the county Assessor's Office estimated that the property tax for the 30 undeveloped lots on the Lyle Point site would be approximately $18,350 per year.
"We're most happy. That's probably substantial revenue for the county," said O'Neill. "They're the owners, so they have to pay the tax."
Chris Beck, project manager for the Lyle Point property, said late Friday that he hadn't yet had time to fully review the decision.
"I haven't read the substance of it, so I can't comment on the details," Beck said. "The ruling is disappointing, but it's just a bump on the road to protecting this beautiful piece of property."
Beck added that it was too soon to know if Trust for Public Land would file an appeal of the tax board's decision.
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