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October 29 DEMOCRATIC HEADQUARTERS: SPECIAL DISPENSATION?A story broke on the on-line forum of a local newspaper about our local Democratic Headquarters not paying property taxes. Seems the building where Democratic Headquarters is housed at 214 North Walnut Street, Muncie, Indiana, is owned by a not-for-profit entity called The Chanticleer Club.
Having an inquisitive nature, I decided to check a little further into those claims. A Certificate of Incorporation for The Chanticleer Club, Inc., was dated October 21, 1976. At the county courthouse, I discovered that the property at 214 North Walnut had a deed date of 3/24/86, the ownership transferring from individuals to "The Chanticleer Club." To further check out the aforegoing, I dropped by the library and researched the City Directory. I looked at volumes covering years 1968-1980 (1981 volume was missing); 1982-1989; 1992; 1995; 2000; 2003; and 2006. My search parameters were: "Year," "Occupant," "Demo," "Chanticleer," "Telephone" (and eventually added "Rooster").
Prior to 1985, 214 N. Walnut was the home of an office machine store. In 1985, the address was shown to be "vacant." The first mention of 'The Chanticleer Club" shows up in 1986. Listed as occupants besides The Chanticleer Club were also Democratic Headquarters and Rooster Boosters. The telephone number for all three entities was the same. The three entities--(including The Chanticleer Club) all show up as occupants through 1995. That year (only) another occupant is added: Women's Dem Org. Still, the same telephone number is shared by all (The Chanticleer Club, Delaware County Democratic Party, Rooster Boosters, etc.) A telephone cross-check came back to all three organizations. In 2000 there was no information pertaining to the Chanticleer Club. The occupant is shown as "Democratic Headquarters Educator's Association," and the telphone number continues the same as before. A telephone cross-check showed that number belongs to Democratic HQ (not to Chanticleer). In 2003, again there is no mention of The Chanticleer Club. Again the occupant is indicated as "Democratic Headquarters Associations," and again the same telephone number appears. Another telephone cross-check ties the number back to Democratic Headquarters. Finally, in 2006, there again is no mention of The Chanticleer Club. Interesting as well, there is no "yellow-page" listing under political organizations, clubs, service groups, etc., for the Democratic Party. (The Republican Party does have a listing in the CD yellow pages.) And, again, a telephone cross-check ties back to Democratic HQ. The occupant is indicated as Democratic Headquarters Associations. Another interesting aspect here is contained in The Chanticleer Club's Articles of Incorporation, Article IX, Section E. "Within the meaning of section 501 (c) (3) of the Internal Revenue code and the regulations promulgated thereunder as may be in effect from time to time, the corporation shall not have any power to engage in, nor shall it engage in attempting by any means to influence legislation by propaganda or otherwise, nor shall it have any power to, nor shall it participate in or intervene in (either directly or indirectly by the publication or distribution of statements) any political campaign on behalf of or in opposition to, any candidate for public office."
To qualify as property tax exempt, the property must be owned, occupied, and used for "educational, literary, scientific, religious, or charitable purpose." Does the property at 214 North Walnut qualify for property tax exemption? To decide that, one needs to look not only at The Chanticleer Club, Inc. (the owner), but all who use and occupy the building. Those occupants would be Democrat Central Committee, Rooster Boosters, and Democrat candidates. While "educational activities" are claimed, many of the activities resemble those of a political organization, as defined by the IRS.
Would somebody please explain why no property taxes are owed?
As an incidental note, my property taxes increased by 75% this year alone. That increase translated to a mortgage payment increase of 10% of my monthly Social Security check. Nice goin' there, 214. Sure would like to know your secret--perhaps I could benefit from it in the future.
C.A. Bouslog
October 11 VOLUNTEER OPPORTUNITIESThe POT Party is asking for volunteers to assist the Property Tax Repeal movement in the following projects. Remember: If we want better government, we have to work for it.
Date Needed: Immediately Description: Telephone contact of individuals in the PTR data base to line up volunteers for various other activities and to get people committed to working the polls on Election Day. Where: You may work from home. Time: As convenient, but the sooner the better. Contact: Phone: (765) 881-0183 volunteercoordinator@propertytaxrepeal.com Date Needed: Immediately. Description: Questions for the PTR Candidate Forum and individuals to attend other candidate forums. Where: N/A Time: ASAP Contact: Phone: (765) 881-0183 volunteercoordinator@propertytaxrepeal.com Date Needed: October 27, 2007 Description: Property Tax Repeal Sign Sale/Distribution: Where: VanDeusen Salon, McGalliard Road (and perhaps also on South Madison Street?) Time: 9-5 Contact: Thomas T. Tax (a.k.a. Jim Arnold) 744-3150, or jrarnold2@bsu.edu Date Needed: Tuesday, November 6, 2007 Description: Volunteers to work at poll sites. Where: Throughout Muncie/Delaware County Time: From Poll open to close. Contact: Phone: (765) 881-0183 volunteercoordinator@propertytaxrepeal.com October 07 And The Wheels On The Bus Go 'Round And 'RoundHere at The POT Party we’ve boarded the Property Tax Repeal bus. This trip could prove to be a tiring one, but there are stops along the way, time for us to stretch, time to readjust our views for better observations. Some of the riders have already decided to ride the bus to the end of the line, to the Total Property Tax Repeal Station. There are others who are not convinced that they want to ride to the end of the line. Their stops will depend on their specific needs. They may disembark at Election Avenue, Effective Government Representation Blvd., Petition Road, Candidate Forum Lane, or Improved Governmental Operations Street. As the bus lumbers along the way, if we scan the view out the windows to either right or left, we will probably see government waste and abuse exposed.
We see all descriptions of people along on this ride. Some are residential property owners, some are business property owners, some are renters. Some are elderly, some middle-aged, and some are young families with children. They are people from all walks of life, of all colors, all religions, all ethnicities. Some look to the PTR originators with trust. Some regard them with suspicion. After all, they say, those PTR guys are mostly businessmen and are probably looking out only for themselves, not for us "little people." Who knows? Maybe it's true. Then, again, maybe not.
We in the POT movement have met several of the PTR activists on this trip, and we have come away convinced that they are focusing on the common good. We cannot speak for all of the originators, that's true. But that’s what’s nice about a long bus ride. You get to know your fellow passengers. And at any point in time, you can pull the cord to bring your trip to a halt.
It’s a very big bus, this PTR bus. Come, join us. Ride to your preferred destination.
C.A. Bouslog
The POT Party October 01 DIRTY BRIEFS BY HOLDEN D. REINS, ESQ.
REPEAL OF PROPERTY TAXES IN INDIANA By Holden D. Reins, Esq. On December 4, 1998, the Indiana Supreme Court revisited several legal issues relating to Indiana's property tax assessment system. Under the Indiana Constitution, the State of Indiana must provide a "uniform and equal" system for the assessment and taxation of real property. The primary issue before the Court involved whether Indiana's then property tax assessment apparatus met this constitutional requirement. The Indiana Supreme Court declared that it did not, but the Supreme Court gave no direction as to how the legislature should solve the problem. The Indiana Legislature finally decided to use a ‘fair market value’ system to assess real property. Since implementation of the ‘fair market value’ system, taxes on both residential and non-residential real estate have risen to the consternation of real property owners. Issue 1: Why does Indiana have a tax on real property? A tax levied on real state is mandated by Article 10 on the Indiana State Constitution. That Article reads:ARTICLE 10. Finance.
Section 1. (a) The General Assembly shall provide, by law, for a uniform and equal rate of property assessment and taxation and shall prescribe regulations to secure a just valuation for taxation of all property, both real and personal. The General Assembly may exempt from property taxation any property in any of the following classes:
Article 10, Section 1 (a) states that the General Assembly "shall provide, by law, for a uniform and equal rate of property assessment and taxation..." (emphasis added.) The term ‘shall’ requires that the General Assembly pass statutes to assess the value of ‘and’ levy levy taxes on the assessed property.
Issue 2: Why is the ‘Fair Market Value" of real property now used to assess real estate for taxation. The State of Indiana previously taxed real property based upon its "true tax value." The "true tax value" of real property was based upon a complex set of formulas developed and applied by the State. The State's application of these formulas frequently produced property assessments that differed from the property's fair market value, sometimes by significant margins. Concerns about the fairness of the previous property tax system had been the source of the litigation against the Constitutionality of such regulation. Article 10, Section 1 (a) states that the General Assembly "shall prescribe regulations to secure a just valuation for taxation of all property, both real and personal." (emphasis added.) Once the Indiana Supreme Court ruled the ‘true tax value’ assessment system unconstitutionally unequal and lacking in uniformity, the General Assembly was required (shall) to devise a set of regulations that provided equality and uniformity. The General Assembly chose the ‘fair market value’ approach to equality and uniformity. The Supreme Court of Indiana gave the General Assembly no guidelines to use in devising a new set of regulations to ‘secure a just valuation’ of real or personal property for tax purposes.
Issue 3. How can Article 10 of the Indiana State Constitution be modified to repeal any tax on real property? Article 16 of the Indiana State Constitution provides for amendment and repeal of any portion of the Indiana Constitution, repeal being an amendment to eliminate a provision of the constitution. Article 16 reads:ARTICLE 16.
Amendments.
Section 1. (a) An amendment to this Constitution may be proposed in either branch of the General Assembly. If the amendment is agreed to by a majority of the members elected to each of the two houses, the proposed amendment shall, with the yeas and nays thereon, be entered on their journals, and referred to the General Assembly to be chosen at the next general election. Section 2. If two or more amendments shall be submitted at the same time, they shall be submitted in such manner that the electors shall vote for or against each of such amendments separately.
To repeal Article 10, or any portion thereof requires that a Constitutional Amendment to that effect "may be proposed in either branch of the General Assembly." If the proposed amendment is "agreed to by a majority of the members elected to each of the two houses" the amendment is then "referred to the General Assembly to be chosen at the next general election." The executive branch of the Indiana government has no active participation in the amendment of the Indiana Constitution. "If, in the General Assembly so next chosen, the proposed amendment is agreed to by a majority of all the members elected to each House, then the General Assembly shall submit the amendment to the electors of the State at the next general election." The two houses of the next General Assembly must agree to the proposed amendment as written and approved by the prior General Assembly. No changes are allowed in the text of the proposed amendment. If changes are made in the text of the proposed amendment then the amendment is deemed to be a NEW amendment and the process starts anew. "If a majority of the electors voting on the amendment ratify the amendment, the amendment becomes a part of this Constitution." From the initiation of the process until ratification, the process requires a minimum of 3 years and a maximum of 6 years, since a new General Assembly is elected every other year and a general election is held only 3 times every 4 years, the first year AFTER a presidential election year not having a scheduled general election in Indiana. Issue 4: Can the General Assembly provide real property tax relief without repeal of Article 10 of the Indiana Constitution? Article 10 provides for 2 exemptions to assessment and taxation on real property held in Indiana. Section 1. (a) (1) Property being used for municipal, educational, literary, scientific, religious, or charitable purposes. Currently, these real properties are completely exempt from property tax assessment and taxation. Section 1. (a) (4) Tangible real property, including curtilage, used as a principal place of residence by an: This subsection of Article 10 describes a building and the immediate, required land around the building (curtilage) that is being used as the principal place of residence for the property owner, an individual who is purchasing his principal place of residence utilizing a ‘land contract,’ or an individual who is the beneficial owner of his principal place of residence when that property has been placed in either a ‘land trust’ or a ‘life estate.’ This means that each individual could, if authorized by the Indiana General Assembly, own one residential property used as that individual’s principal place of residence without incurring any property tax obligation on that property. By analogy, the General Assembly may exempt a portion of the tax due on such a qualifying real property, since they have the power to exempt the entirety from taxation, so long as equally exempted.Conclusion: Issue 1: Why does Indiana have a tax on real property? Property taxes are mandated by Article 10 of the Indiana State Constitution. Issue 2: Why is the ‘Fair Market Value" of real property now used to assess real estate for taxation. After the ‘true tax value’ regulations were found to be unconstitutional under Article 10, the Indiana Legislature promulgated new regulations basing the mandated property tax on ‘fair market value’ of a particular piece of real estate. Issue 3. How can Article 10 of the Indiana State Constitution be modified to repeal any tax on real property? The mandate of taxing property can only be repealed by an Amendment to the Indiana State Constitution as delineated by Article 16 of the Indiana State Constitution. Issue 4: Can the General Assembly provide real property tax relief without repeal of Article 10 of the Indiana Constitution? Article 10 provides that owner occupied residential real estate MAY be exempted in part or whole from property taxation. H.D. Reins, Esq. September 30, 2007 |
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