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State’s highest court to hear tax case of city, Columbus Park

13th May 2003

State's highest court to hear tax case of city, Columbus Park

Date: 5/13/2003



The Wisconsin Supreme Court will hear a Kenosha property-tax exemption case that has city officials concerned.

The case involves the nonprofit Columbus Park Housing Corp., which provides rental housing to low-income tenants. Columbus Park sued the city when it assessed the group for property taxes even though the organization argued it was exempt.

Columbus Park won the lawsuit in Kenosha Circuit Court in June 2002. The city appealed, but the appellate court found in favor of the organization in a November 2002 decision.

The city once again wanted the case reviewed and asked the state's top court to consider the matter. The state Supreme Court decided on April 24 to hear the case.

Both sides are to file written summaries of their positions. Dates are to be set for the lawyers for both sides to argue in front of the Supreme Court justices. A decision could be made several months later.

Municipalities in the state reportedly have been watching the case because of the impact the ruling could have on who must pay property taxes.

City officials are concerned because, among other things, if Columbus Park and other groups are not required to pay the taxes, that burden would shift to other property owners.

Supporters of Columbus Park don't believe the impact statewide would be enormous.

Attorney Robert DuMez, representing the city, said the key issues are that the law says that a group such as Columbus loses its property tax exemption under certain circumstances. Those circumstances include:

n It leases a part of its property to somebody else, except when that tenant would qualify for the exemption if the tenant owned the property.

n How the income from the tenant is handled.

The city argued the tenants would not qualify for the exemption and questioned whether the rent was being used as required, DuMez said.

DuMez said he believes the language in the law is straightforward.

``It's not a question of whether Columbus Park is a worthy entity or a good citizen doing good things,'' he said. ``The statute says this is who gets an exemption, and nobody else does.''

Dave Kinnamon, representing Columbus Park, said the Kenosha and appeals courts decided the matter correctly.

``The decisions were in accord with allowing non-profit organizations that run public housing for low-income persons to function,'' he said.

Kinnamon said the law was open to interpretation.

``The city was interpreting the language strictly, even if it had the effect of defeating the charitable activity,'' he said.

He said the law's language is intended to prevent a taxexempt organization from having commercial tenants.

``This would give that organization a considerable advantage over the commercial landlord who leases to businesses and has to pay taxes,'' said Kinnamon.

Kinnamon said that taxing an organization such as Columbus Park would put it out of business.

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Latest News

11th May 2010

Fabiano benefits claim in federal court

An appeals board in Washington, D.C., will decide whether the survivors of the late Kenosha County Sheriff’s Deputy Frank Fabiano Jr. are eligible to receive federal worker’s compensation benefits.

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19th December 2009

Catholic church will not host rally

On Wednesday, Dec. 16, the Kenosha News published an article that implied that a rally in support of a pending immigration bill would take place at St. Mark Parish. No such rally is taking place at St. Mark.

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