Eight previously tax-exempt organizations have been added to Tisbury tax rolls, the assessors’ office confirmed this week, prompting new expressions of concern and confusion from leaders at the nonprofits.
The eight include Hospice of Martha’s Vineyard, Friends of MVY Radio and the Martha’s Vineyard Playhouse. Last week town assessors said they were standing by a decision to deny tax-exempt status to playhouse for the first time in its 36 years, saying the theatre’s mission does not meet the legal definition of a “benevolent” use.
As a result of the vote, the playhouse will be liable to pay some $7,800 in taxes on an assessed valuation of roughly $875,000 a year on its Church street theatre facility.
The Vineyard Montessori School, the Martha’s Vineyard Center for Living, Sail Martha’s Vineyard, the Vineyard Haven Tennis Foundation and Island Grown Initiative will also be receiving tax bills next month, assistant assessor Ann Marie Cywinski said this week. Once they receive their bills, the organizations will have until Feb. 1, 2019 to either pay the bill or appeal the decision to the state appellate tax board.
Thomas Hallahan, executive director of Hospice of Martha’s Vineyard, said he filled out most of the required forms last December but then forgot to complete them until after the March 1 deadline. When he submitted the forms in the beginning of April, he apologized and took responsibility for the error. He was told his organization would be taxed.
“It was just very punitive,” Mr. Hallahan said. “Again, I totally take responsibility for this.”
He also said the assessor’s office informed him that an appeal would likely not succeed because of the late submittal. He said he was told to turn the forms in on time next year in order to regain an exemption for the organization, whose office is housed in a condominium in the Tisbury Marketplace. Hospice also owns a small storage facility off State Road in Vineyard Haven that will now be taxed as a result of the decision by assessors.
Hospice provides end of life care and bereavement services to Islanders free of charge. Mr. Hallahan said over the past two and a half years the client census has doubled, and the organization operates at a deficit, offset by its endowment.
“When you’re such a small mom-and-pop nonprofit you do everything, and this is something that fell through the cracks,” he said, speaking of the paperwork that was turned into the assessors past the deadline last year.
He also said he asked to be put on the agenda for an assessors meeting twice to discuss the matter, but the requests were not accommodated.
According to data provided by the assessors’ office, the Hospice business condominium is assessed at $352,000. The storage area is assessed at $8,900.
The board of assessors is made up of three elected assessors, each elected for a three-year term. They are Angela Cywinski, who is chairman of the board, Roy Cutrer and Cynthia H. Richard. The office is staffed by an assistant assessor, a data collector and an administrative secretary to the board, according to the town’s website.
Assistant assessor Ms. Cywinski said the eight organizations lost their tax exempt status for different reasons. The Vineyard Montessori School and Sail Martha’s Vineyard failed to submit annual forms to assessors asserting their status as exempt charitable organizations.
Like Hospice, the Martha’s Vineyard Center for Living did not submit its paperwork until after the deadline, leading to the denial by assessors. Ms. Cywinski said neither organization requested an extension before the deadline.
Friends of MVY Radio, Island Grown Initiative, the Vineyard Haven Tennis Foundation, and the Martha’s Vineyard Playhouse all submitted required documentation, but were found ineligible upon further evaluation.
Ms. Cywinski said the organizations will be alerted to their change in status when the tax bill arrives later this month.
“The official notice is going to be the tax bill,” she said.
When contacted for comment Thursday morning, leaders at WMVY radio were unaware they had been denied tax-exempt status. The listener-supported radio station rents its space, but according to assessor records has about $167,000 in personal property.
Business manager Marianna Cibulasova said she had corresponded with the assessors office about the role of the nonprofit radio station in the community, but the exchange was inconclusive.
Station manager PJ Finn said while the tax burden on the station will likely be small, he was more concerned about the value judgment behind the decision. Among other programs, the station provides local news and interviews through The Vineyard Current.
“It’s just disappointing not to be recognized for the service we provide,” Mr. Finn said. He said the station plans to appeal the decision.
Rebecca Haag, executive director at Island Grown Initiative, echoed Mr. Finn.
“The amount isn’t that great but we feel like it’s a principle. We’re providing a benefit to the town,” she said.
Assessors voted to tax a portion of Island Grown Initiative property in the last fiscal year because the organization leased land to farmers for a small fee and housing to one employee. Ms. Haag said IGI appealed that decision and has since changed the nature of its relationships with farmers and with the employee. Assessors continued the partial denial for next year pending a decision from the appellate tax board.
In addition to donating gleaned food and providing affordable land for farmers, IGI runs educational programs in all Island schools.
Ms. Haag said taxing nonprofit organizations sends the wrong message.
“Nonprofits on the Island provide a lot of services that otherwise would fall to the cities and towns to do,” Ms. Haag said. “So for me, it runs counter to what cities and towns are trying to do to access services for their citizens.”
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