Tisbury assessors have denied tax-exempt status to the Vineyard Playhouse.
Mark Alan Lovewell

Eight Nonprofits Go on Tisbury Tax Rolls

<p>Eight previously tax-exempt organizations have been added to Tisbury tax rolls prompting new expressions of concern and confusion from leaders at the nonprofits.</p>

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.

Playhouse is one of eight to lose tax-exempt status this year.
Mark Alan Lovewell
Playhouse is one of eight to lose tax-exempt status this year.
Mark Alan Lovewell

“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.”

Comments

Submitted by Anonymous (not verified) on Thu, 12/06/2018 - 20:26

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Patrice Daniels Edgartown

This is just another example of Tisbury trying to find money. This town is so poorly run it’s comical. Why not try to collect on other fees that are uncollected. Water bills are unpaid,sewer bills unpaid. This current government needs to look at it self and start from scratch. Dysfunctional government is not what the taxpayers deserve. Maybe an outside look at how the town operates is in order.

Submitted by Anonymous (not verified) on Thu, 12/06/2018 - 22:46

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Chris Edgartown

At what point do we recognize that big government is not our friend? It seems that we are losing our ability to self-govern, as was our founders wish, at an astonishing pace. But, of course, we are silent! Churches will be next. The almighty dollar rules our government and our government rules us. I once remember hearing something about a constitution......perhaps I was dreaming.

Aron WT

Taxation is legal. You seem to be confused.

I disagree with these decisions but the fact remains that the forms were not filed in time. That’s what happens.

Nice slippery slope fallacy, by the way.

Juleann West Tisbury

The Board of Assessor's has also not kept their end-of-the-deal in a timely fashion. Minutes of board meetings for almost the entire year are not available, which means they are not meeting the standards of the Open Meeting Law. The Board apparently made their decisions in July but did not notify the organizations of their change of status until September. The Tisbury Board of Assessors has some ethical and legal dilemmas that warrant scrutiny from the Secretary of State's office.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 03:19

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Island Guy WT

Maybe the Churches should be next... only seems fair.

I never understood why non-believers should support the believers.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 06:45

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thomas hodgson wt

Tisbury is not exactly covering itself with glory, here. How much will the inevitable lawsuits cost the Town, vs what the Town might make from taxing organizations that charitably serve us all? What is the negative cost of these actions, that show the town to be a heartless, unbending, un-understanding, uncharitable, place, ruled by bureaucratic martinets? Nobody wins with these actions. Nobody. What a shame.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 07:19

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Tisbury voter Vineyard haven mass

Yes our town of Tisbury is looking for more tax revenue because our commercial tax base has not been improved such as Stop and Shop,and a lot of open land as gone to Land Bank and other land none profit groups,so Tisbury fellow tax payers suck it up we can't have our cake and eat it too.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 07:32

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Carole Saucier Manchester, ct

This is ridiculous. Especially Hospice. The town should be ashamed of itself. Very sad. Perhaps a GoFundMe site should be setup to offset the new taxes.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 07:42

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Islander too

It is really a shame that so many of these small organizations have lost their status for a completely avoidable reason: they didn't file the necessary paperwork on time. There is no excuse for that kind of sloppiness. Anyone who runs a small business---including a one-man or one-woman show---knows that he or she has to pay estimated taxes on time. If you have a car you know you have to renew your registration and your inspection on time. You have to file your tax return on time. It is inconceivable to me that the people running these organization, or the presidents of the board of directors, let these extremely important deadlines just blow by them. Despite the valuable work that these nonprofits do, I can't help thinking that part of the takeaway here is that the people running them, while full of good intentions and plans and ideals, are amateurs. At the very least they need to have an accountant on their board of directors.

Susanna J. Sturgis West Tisbury

When I pay my quarterly estimated tax payments late, I expect to be assessed a penalty. I do not expect to have my tax status changed. The penalty doesn't fit the "crime" in this case. Nowhere close.

Islander too

I said:
"COMPLETELY AVOIDABLE REASON."

The grown-ups in this world know that you can get snagged by a technical error. This is, BTW, also true vis-a-vis the IRS. An arithmetic error on your tax return is one of the quickest ways to flag an audit, even when you owe no further taxes.
My point stands.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 08:47

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RRA Vineyard Haven

Why does this town have the highest tax rates on the island and now the government needs to tax not for profits? Hospice, theatre - I would hope that this community would want to support things that contribute positively to life (and death) here. Clearly there is something amiss and I agree that the town should look hard at finances and management. However, not for profits should not be complacent about filing the necessary paperwork for maintaining their non taxable status. That is just sloppy. Institutions that depend on charitable contributions and tax breaks should be run professionally.

here we go again edg

It has the highest tax rate because its the most poorly run town on the Island. Their regressive tax policies punish seasonal residents (who SUBSIDIZE the year round residents!) who do not need the municipal services or schools that year rounders do. So anyone with a brain who is considering the purchase of a summer home will buy in a well run town such as Edgartown, where the values increase and the tax bills reflect prudent management. Whether its meddling with the police dept, trying to stop a nice improved stop/shop, or this nonsense...its 'typical tisbury'. Perhaps it should be renamed 'the peoples republic of tisbury'.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 10:13

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Paul J VH

I thought tax exempt status, also known as 501(c)3 status, was a federal designation. How is this something that the town of tisbury has anything to do with? Can someone please explain this?

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 10:43

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Chris Katama

Apart from the failure to file, the actions were initiated by the Assessors office. This seems to be a money grab at a time when it doesn't seem to be necessary. The island is more popular than ever, as evidenced by this summer's record number of tourists. Real estate values are also at or near all-time highs and so are the correlated taxes. Government needs to tighten their own belt and find greater efficiencies before they come after us for more taxes. I'm hopeful that the Hospice of MV is able to prove their case. They were instrumental in ensuring a quality end of life experience for my father and I believe provide a highly valuable community service.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 11:19

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CaryC Oak Bluffs

Tax-exempt status is granted to charitable 501(c)(3) organizations by the IRS. This tax-exempt status continues without further application to the IRS as long as the corporate status is renewed annually until the organization either changes its purpose or disolves. This status should be recognized by the state and municipalities as well. To say Hospice or any of the others on the assessors’ hit list isn’t benevolent is ridiculous and hurts the community as well as the organizations.

Fred Shaw Boca Raton, FL

My understanding is that the 501(c)(3) status granted by the FEDERAL government is not binding on the STATE government. An organization might be exempt from paying FEDERAL taxes, but not necessarily from paying STATE taxes. Just saying.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 14:10

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Tisbury Tax Payer

Good for you Tisbury's assessors for Enforcing the rules, regulations & laws and THANKS!!!
I am also glad OB b went after the VFW & their open door policy.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 14:25

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skip OB

Discouraging charity and entrepreneurism in one fell swoop, tch, tch, tch. Absolute power corrupts, absolutely. Wonder what a class action suit produces?

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 16:12

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Tony B Edgartown

Move to Edgartown - I think we'd love to have organizations like Hospice and MVY in town. Makes our town more vibrant and diverse. Welcome.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 18:10

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ecs edgartown / fll

Cary C
That's an interesting point about hospice which brings to mind the question of 'when does a medical facility not become for profit'. there are plenty of not for profit hospitals but should they be?

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 18:41

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Tisbury taxpayer Brooklyn

Shame on you,Assessors! The Vineyard Playhouse contributes so much to the Town and the Island as a whole! Great shows, reasonable ticket prices, art shows, and wonderful programs for kids! Hospice is also a great program—- Sail MV, and the rest as well! Since these organizations serve community needs, this plan STINKS! Get over yourselves!

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 21:08

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Dizzy Tiz Tizbury

If I could move I would. This town had so much potential but its "leaders" leave us rudderless, clueless, and the Island laughing stock. I'm sad to call this town my home.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 21:51

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Megan Sausalito

I do not and will never understand how any town on the Island can sufficiently explain the exorbitant taxes and fees bestowed upon its citizens (often times met without any real resistance by the way) when it has so much of its own GDP, basically, on top of the insane summer money!!! It's like the Revolutionary War never even happened here. Blueprint of England.

Submitted by Anonymous (not verified) on Fri, 12/07/2018 - 23:57

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Downislander

Hospice? Really? They provide free end of life nursing care to dying people. If that’s not a charity, I don’t know what is. They make no profit, they are totally funded by donations. This is ignorant and shameful.

Submitted by Anonymous (not verified) on Sat, 12/08/2018 - 09:17

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Toby Condliffe Vineyard Haven

“Everyone deserves a second chance.” There is a difference between the two organizations that missed the March deadline and the others who were reviewed and deemed ineligible. The two that missed the deadline should be forgiven - once. Lesson learned. This is especially so since the Board of Assessors needs to ask for forgiveness for missing their own deadlines for filing their minutes! With respect to the other deserving organizations which were deemed ineligible, the remedy should be at the ballot box.

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