Agenda 8-d - Applications for Property Tax Exemption Exclusion

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7 Gorgon's Head Lodge, Inc. 711 East Franklin Street Chapel Hill, NC 27514 The following attachments are supplements to the preceding documents. The Gorgon's Head Lodge is making an application for both an exemption of property taxes under GS 105-275(19). Attachment: Late Application The purpose of this attachment to the late business tax exemption application is to explain why the application is late for tax year 2018. The Gorgon's Head Lodge received a letter on February 8, 2018 indicating that the structure was now considered a contributing structure to the Franklin-Rosemary Historic District and may be eligible for tax benefits (Exhibit 1). After consulting with our tax professional during the preparation of the 2017 Form 990 submitted 11.15.18(Exhibit 2),the Lodge decided to submit this appeal for the tax year 2017. We will be submitting an appeal for 2019 in January 2019 as well, in the event this application is not accepted for 2018. Attachment: NC Form AV-10 The purpose of this attachment to NC Form AV-10 is to provide supplementary documentation supporting the case for the Gorgon's Head Lodge located at 711 East Franklin Street to be granted a property tax exemption under NC 105-275.(19) (text below). (19)Real and personal property belonging to the Loyal Order of Moose,the Benevolent and Protective Order of Elks,the Knights of Pythias, the Odd Fellows, the Woodmen of the World, and similar fraternal or civic orders and organizations operated for nonprofit benevolent,patriotic, historical,charitable,or civic purposes, when used exclusively for meeting or lodge purposes by the organization, together with as much additional adjacent real property as may be necessary for the convenient normal use of the buildings.Notwithstanding the exclusive-use requirement of this subdivision,if a part of a property that otherwise meets this subdivision's requirements is used for a purpose that would require that it not be listed, appraised, assessed, or taxed if the entire property were so used, that part,according to its value,shall not be listed,appraised,assessed,or taxed. The fact that a building or facility is incidentally available to and patronized by the general public, so for as there is no material amount of business or patronage with the general public, shall not defeat the classification granted by this section. Nothing in this subdivision shall be construed so as to include social fraternities, sororities, and similar college, university, or high school organizations in the classification for exclusion from ad valorem taxes. (19a)Improvements to real property that are(i)owned by social fraternities,sororities, and similar college, university, or high school organizations and(ii)located on land owned by or allocated to The University of North Carolina or one if its constituent institutions. As stated in part 1.1 of the attached 990 for the Gorgon's Head Lodge (Exhibit 2), the organization's mission is "to give permanence to a social club composed primarily of students of the University of North Carolina and to preserve club assets." The primary purpose of the organization is to preserve the historic structure and surrounding land located 711 East Franklin Street operating for nonprofit benevolent and historical purposes exclusively for meeting purposes. The historic structure at 711 E. Franklin was built in 1923 and was recently added as a "contributing" structure to the Franklin- Rosemary Historic District in Chapel Hill, NC(Exhibit 1). It has been used continuously and exclusively as a meeting place for the Gorgon's Head Lodge since its construction. The club is not a social fraternity, has no residential component, and is in no way affiliated with the University of North Carolina and resides on property that is owned by the Club as evidenced by the attached property tax bill (Exhibit 3). In addition the club is not comprised solely of University students;