According to NorthJersey.com news, Rabbi Shmuley Boteach, author of bestsellers including “Kosher Sex”, “Kosher Jesus”, “Kosher Sutra” and “Kosher Adultry”, is seeking approval to convert a caretaker house on his Englewood, NJ property to a synagogue.  His rational is that he holds services in the caretaker house.  Fair enough. 

If the city approves the conversion he would basically sell the whole property, valued by the assessor at around $2.5 million, to “This World”, a non-profit that he heads.  The non-profit could then seek to have the whole property, including the significantly larger home in which his family lives and the indoor pool in which they presumably swim,  exempted from its $63k property tax liability.

Apparently Boteach’s neighbor, the Libyan Mission to the United Nations, already has a property tax exemption as a non-profit.  So, there might be a precedent.  According to thefreedictionary.com, the slang for “kosher” means “legitimate”.  I have nothing against the Rabbi and the good work that he does, but I’m just wondering, is this really a kosher property tax exemption?

Are there any Ohio State University fans out there?  Most that I have come into contact with are quite excited about the fact that they are fans.  Well, maybe not lately.  OSU has had a tough time winning in November.  After winning the first weekend in the month, its football team lost three in a row.

OSU also lost a property tax appeal before the Ohio Supreme Court.  The issue was over a property tax exemption granted on a building owned by the university but rented to third parties for non-university use.  The State Board of Tax Appeals granted the tax-exempt status and the city and school district appealed to the Supreme Court.  The Supreme Court ruled that the property must be used for university purposes to be exempt from property taxes.  And with a 7-0 ruling, OSU lost again in November.

Who’s vacationed in Hawaii, or at least dreamed of vacationing there?  It’s warm, beautiful, and relaxing.  Hawaii is like paradise with almost 7 million people visiting each year (that’s almost seven visitors to every resident).  It appears, however, that “paradise” is not without flaws.  According to the Star Advisor, a Honolulu newspaper, Oahu is considering abolishing certain property tax exemptions, including those given to the blind, elderly and disabled in an effort to increase property tax revenues.  Seriously?  Do I even need to comment on how bad that sounds?

In my last blog, I mentioned that a recent U.S. News and World Report article labeled property taxes as the most hated tax in America.  I ended by asking “Why do you think property taxes are the "most hated" tax in America?”  I’d like to take this opportunity to thank Oahu for their submission.

                                                                           Do you remember the story of Noah’s Ark?  According to the Bible, a man named Noah built the massive Ark and was able to save his family and two of every animal from a great worldwide flood.  The Ark came to rest over 4300 years ago on Mount Ararat, which is in modern day Turkey.  Since that time, attempts have been made to Trek up the dangerous mountain to see the Ark….. and attempts have failed.  Recently, actor and model, Donna D’Errico, had to cancel her lifelong dream to find Noah’s Ark because of safety concerns.

Perhaps there is another way to fulfill that lifelong dream…… The city of Williamstown, KY has recently agreed to give a 75%, 30 year property tax exemption for a group to construct a new theme park that includes a wooden replica of Noah’s Ark.  That’s right, the Ark is coming to Kentucky!  No need for a dangerous trip up a mountain in Turkey any longer.

City planners believe that the estimated 1.4 million annual visitors and 900 new jobs will generate significantly more revenue on the 800 acres than the unoccupied land generates today, even with the property tax exemption.  With property tax assistance, the Ark (or at least a replica) will find a new resting place in Kentucky.

Do you remember playing games as a kid?  Some of my best childhood memories were playing kickball, dodgeball or baseball with my neighborhood friends!  While most of us were there to have fun, there was always that one kid who would try to change the rules when things weren’t going his way.  In dodgeball it was “it only hit my shirt, not my body”.  In baseball, the strike zone became non-existent.  In kickball he was never out, no matter what the facts might otherwise indicate.  And there was always some “new rule” used to explain the situation….. usually one we had never heard of before.

Application software is exempt from personal property taxation in California (and most other states for that matter).  When it is included with the price of equipment a taxpayer must identify the nontaxable software portion and show its value in order to be exempt.  Seems like a fair rule.  In fact, taxpayers have played by this rule for years and the courts have backed the rule.  But, like that one kid on the playground, certain assessors and legislators don’t like the rule.  They introduced a “new rule”, AB 832, which would raise the standard of proof to make it almost impossible for taxpayers to win.  Fortunately the bill has been “ordered to inactive” which means that it won’t be discussed for at least another year.  But don’t be surprised if that kid shows up again.

For more information on AB 832, you can check out www.caltax.org. 

If you want to know more about how to pursue a position on nontaxable software, feel free to contact us.