HomeMy WebLinkAbout10-5713IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
THE LITTLE THEATRE OF PROPERTY TAX VALUATION AND
MECHANICSBURG PENNSYLVANIA, : EXEMPTION APPEAL
Appellant
V. NO. /0- 5 7 3' v,
CUMBERLAND COUNTY BOARD OF
J
ASSESSMENT APPEALS,
s? n r v, -0
{
Respondent
PETITION FOR REVIEW OF AND APPEAL FROM THE DECISION ( u
,
TTTLV A"TTAdDTT>T A ATT\ A"^1r TATTY DA A 7171 nIV A VQT,1V rAK1VXTT A 77T)Li A T
To the Honorable Judges of the Court of Common Pleas of Cumberland County:
The Little Theatre of Mechanicsburg Pennsylvania ("Appellant" or "Little Theatre"), by
and through its attorneys, Gothie Van Allen LLC, petition this Court for the review of
Appellant's appeal from the decision of the Cumberland County Board of Assessment Appeals.
In support of its petition and appeal, Appellant represents the following information:
1. This Court has jurisdiction pursuant to the General County Assessment Law, 72 P.S. §
5020-518.1, the Judicial Code, 42 Pa. C.S. §§ 933 and 5571, and the Local Agency Law, 2 Pa.
C.S. § 752.
2. Appellant is The Little Theatre of Mechanicsburg Pennsylvania.
3. Appellant's headquarters are located at 915 South York Street, Cumberland County,
Pennsylvania 17055, or parcel number 42-25-0032-105 ("Property").
4. Respondent is the Cumberland County Board of Assessment Appeals ("Board").
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c-6 t 46 83
5. The Board maintains its regular office at Old Courthouse, First Floor, One Courthouse
Square, Carlisle, PA 17013.
6. This is an appeal from an Order by the Board issued on or about August 12, 2010
determining the assessed value and exempt status of the Property and Appellant. A true and
correct copy of that Order is attached as Exhibit A and incorporated by reference.
7. The Property is the subject of this property tax assessment and exemption appeal;
8. On or about June 2, 2010, Appellant timely and properly filed with the Board an
assessment and exemption appeal.
9. On or about August 12, 2010, the Board held a hearing regarding Appellant's exemption
appeal of the Property.
10. On or about August 12, 2010, the Board denied Appellant's property tax exemption
appeal.
11. Through that decision, the Board improperly valued the Property and improperly
determined the exempt status of the Property.
12. Appellant believes and therefore avers that the Property should be exempt from all
property taxes.
13. Appellant believes and therefore avers that the actual fair market value of the Property is
unreasonably high.
14. On or about September 23, 2010, Appellant is scheduled for a hearing in front of the
Cumberland County Board of Assessment Appeals regarding the assessed value of the Property.
15. The Internal Revenue Service has determined that the Appellant is an exempt ent'ty that
qualifies as a 501(c)(3) organization. A true and correct copy of Appellant's 501(c)(3)
determination is attached as Exhibit B and incorporated by reference.
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16. The Appellant has a Pennsylvania exemption certificate for sales and use taxes as a non-
profit educational institution. A true and correct copy of Appellant's Sales and Use Tax
Certificate of Exemption is attached as Exhibit C and incorporated by reference.
17. The Appellant does not issue dividends.
18. The Appellant's Board of Directors receives no compensation.
19. The Appellant has two part-time employees who receive market-based or belowymarket
compensation.
20. The Appellant has had a net-income loss in the last three years.
21. Each year, Appellant puts on seven to eight theatrical performances which are efitirely
run by volunteers.
22. The Appellant advances a charitable purpose.
23. Every member of the public is a beneficiary because any member of the public can
volunteer and learn about acting, set design, directing, lighting, production, stage management
and direction.
24. The Appellant provides a cultural and educational service to the community it selves by
promoting and increasing the public awareness of education of the arts and preserving the
institutions of literature and the arts by performing well-known and little-known dramas,
comedies and satires at intentionally low admission costs.
25. The Appellant donates or renders gratuitously a substantial portion of its services.
26. The Appellant offers free education year round to anyone interested in learning about the
production of a theatrical work in several areas including set design, lighting, production, acting,
stage management and direction.
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27. The Appellant charges reduced admissions which are heavily subsidized by donations
from the community, including from grants, patrons, various foundations and businesses.
28. Without those donations, Appellant would not be able to operate and has operand at a
loss for the last three years, but chooses not to raise ticket prices in order to stay consistent with
Appellant's mission statement to provide high-quality entertainment in an intimate setting to
mid-state audiences, while simultaneously educating and enriching the lives of volunteer
directors, performers and production staff.
29. The Appellant sells all of the seats in the theatre at a reduced rate to organizations such as
churches and women's organizations. These performances are private performances used for
fund raising purposes for each of those organizations.
30. The Appellant participates in community events such as events for the Mechanicsburg
Chamber of Commerce including the Home Tour, Holly Trail Tour, the Christmas Tree'' Lighting
and others without any compensation.
31. The Appellant donates tickets to churches, schools and other organizations.
32. The Appellant provides uncompensated services which in the aggregate are equal to at
least 5% of Appellant's costs of providing goods or services.
33. The Appellant and Property benefit a substantial and indefinite class of persons who are
legitimate subjects of charity.
34. The Appellant offers free education and training to any individual interested in 16arning
about the production of plays and therefore the general public becomes an indefinite class of
persons who are legitimate subjects of charity.
35. The Appellant offers reduced admission fees and thus the general public becom?s an
indefinite class of persons who are legitimate subjects of charity.
4
36. The Appellant and the Property relieve the government of some of its burden.
37. The government has routinely assumed a responsibility for providing cultural assets and
establishing a wide ranging assortment of parks, recreation areas and cultural facilities
throughout Pennsylvania. Unionville-Chadds Ford Sch. Dist. v. Chester County Bd. of,
Assessment Appeals and Longwood Gardens, Inc., 552 Pa. 212, 221 (1998) (holding that
Longwood's public park and cultural facilities fall clearly within the scope of burdens that are
routinely shouldered by government because the government has long provided support, for
public parks and recreation areas as well as for cultural institutions).
38. The Appellant provides a cultural and educational service to the community it nerves by
promoting and increasing the public awareness of theatre and preserving the institution of
literature and the arts.
39. Education is widely acknowledged to be a government's burden and one essential to
society's future and continued social, economic and political well-being.
40. The Appellant produces seven to eight main theatrical productions that span the, calendar
year.
41. The Appellant offers hands-on education and training for those various productions for
several weeks before each production, including set design, lighting, production, acting, stage
management and direction.
42. For many productions, that hands-on education takes place on almost every week day and
most weekends.
43. The Appellant provides a youth theatre workshop called After Class Act for tw6 weeks in
the fall and two weeks in the spring for ages 8 to 18 at a minimal cost. Costs per person are
reduced for multiple members of a family. At the end of the Spring session, the youth perform a
live performance at Jubilee Day in downtown Mechanicsburg.
44. The Appellant and Property operate entirely free from private profit motives.
45. The Appellant has operated at a loss for the last three years and continues to provide
intentionally low admission fees.
46. In the event the Appellant was dissolved, the Property and assets would be distributed to
a similar non-profit educational organization.
47. The entire Property is necessary for and used by the Appellant to fulfill its charitable
purpose.
48. Appellant objects to the Board's decision for the following reasons:
A. The Board improperly determined the Property was not exempt from all property
tax, in whole or in part, as property owned and used by an Institution of Purely Public
Charity. 72 P. S. § 5020-204(a)(3) and (6); 72 P. S. § 5342 et SeMc .; 10 P. S. § 375(a).
B. The Board improperly computed the assessed value of the Property whidh is
unreasonably high, improper, unjust and contrary to law resulting in an assessed value
that is greater than the Property's actual fair market value. 72 P.S. § 5020-1 et geeq.; 72
P.S. § 5342 et SeMc .
C. The Board improperly denied Appellant due process and equal protection of the
law and uniformity of taxation under the United States and Pennsylvania Constitutions.
WHEREFORE, Appellant requests this Honorable Court to: hold a de novo hearing in
this matter; grant Appellant's Property an exemption from all real property taxes; reduce the
6
assessed value of the Property to the appropriate assessed fair market value; award reasonable
counsel fees and costs to Appellant; and grant any other just and proper relief.
Respectfully submitted,
r Z 2Q?o
Da
Z14?
Paul R. Morcom, Esq.
(Attorney Number 89314)
Gothie Van Allen LLC
Commerce Towers- 12th Floor
300 North Second Street
Harrisburg, PA 17101
717.909.7263 (T)
717.214.4567 (F)
prm@gvafirm.com
www.gvafirm.com
Counsel for Appellant
7
VERIFICATION
Subject to the penalties of 18 Pa. C.S. § 4904, relating to unsworn falsification Ito
authorities, I hereby certify that I am authorized to make this verification on behalf of The Little
Theatre of Mechanicsburg Pennsylvania, that I have reviewed the foregoing and that toe facts set
forth therein are true and correct to the best of my knowledge, information and belief.
The Little Theatre of Mechanicsburg Pennsylvania
By:
Printed Name: des 1,?e, L L"eyWde- _
Title: Treasufti,
Dated: September 3, 2010
CERTIFICATE OF SERVICE
I hereby certify that I am this day serving a copy of the attached Petition for
Review of and Appeal, Rule to Show Cause and proposed Order upon the persons
and in the manner indicated below, which service satisfies the requirements df
Pa.R.C.P. 440:
Service by first-class, certified mail, return receipt requested:
Cumberland County Board of Assessment Appeals
Old Courthouse, First Floor
One Courthouse Square
Carlisle, PA 17013
Cumberland County Commissioners
Cumberland County Offices
1 Courthouse Square
Carlisle, PA 17013
Upper Allen Township
100 Gettysburg Pike
Mechanicsburg, PA 17055
Mechanicsburg Area School District
School Board of Directors
100 E. Elmwood Ave., 2°d Floor
Mechanicsburg, PA 17055
Paul R. Morcom, Es v
(Attorney Registration No. 89314{)
Gothie Van Allen LLC
Commerce Towers -12d' Floor
300 North Second Street
Harrisburg, PA 17101
717.909.7263(T)
717.214.4567 (F)
prm@gvafirm.com
www.gvafirm.com
Dated: September 3, 2010 Counsel for Appellant
A
Cumberland County Board of Assessment Appeals
Old Courthouse
One Courthouse Square
Carlisle, PA 17013
(717) 240-6350
(717) 240-6354 (fax)
Board of Assessment Appeals
Lloyd W. Bucher
Albert Peterlin
Allen Shank
BONNIE M. MAHONEY
Chief Assessor
STEPHEN D. TILEY
Assistant Solicitor
DECISION ORDER
MAILING DATE: August 16,201P
PARCEL NUMBER: 42-25-0032,105.
THE LITTLE THEATRE
C/O PAUL MORCOM, ESQ
GOTHIE VAN ALLEN. LLC, 12TH FL
300 NORTH SECOND STREET
HARRISBURG PA 17101
Dear Property Owner:
This letter is to officially notify you of the decision of the Cumberland County Board of AssOssment Appeals
regarding the above-referenced parcel.
DATE OF APPEAL HEARING: 08/12/2010
DATE DECISION RENDERED: 08/12/2010
EFFECTIVE FOR TAX YEAR: 2010
DECISION RENDERED: [ ] Withdrawn By Applicant
[ ] Abandoned For Failure To Appear
[X] Denied - No Change
[ ] Approved Review Appraiser's Changes
[ ] Revised Assessment Based on Hearing
(] Other:
TOTAL VALUE FAIR MARKET CLEAN AND GREEN (CLEAN AND GREEN
STATUS
Old Assessed Value: 126,640
New Assessed Value: 126,640
NOT
APPLICABLE
Any person aggrieved by the order of the Board of Assessment may appeal to the Court of Common
Pleas by filing a petition in the Prothonotary's office on or before September 6, 2010.
B
t
internal Revenue Service
Date: January 8, 2001
Little Theater Mechanicsburg Pennsylvania
915 S. York St.
Mechanicsburg, PA 17055-4738
Department of the Treasury
P. O. Box 2508
Cincinnati, OH 45201
Person to Contact:
Sheila Schrom 31-02836
Customer Service Representa0e
Toll Free Telephone Number:
8-.00 am to 90 p.m EST
877-829-5500
Fax Number:
513-263-3756 -
Federal Identification Number:
23-7360571
Dear Sir or Madam:
This letter is in response to your request for a copy of your organization's detemnination letter.; This letter will
take the place of the copy you requested.
Our records indicate that a determination letter issued in July 1974 granted your organization emption from
federal Income tax under section 501(c)(3) of the Internal Revenue Code. That letter is still in ffect.
Based on information subsequently submitted, we classified your organization as one that is t a private
foundation within the meaning of section 509(. of the Code because it is an organization de?ribed in
a)
section 509(x)(2).
This classification was based on the assumption that your organization's operations would tine as stated
in the application. If your organization's sources of support, or its character, method of ope s, or
purposes have changed, please let us know so we can consider the effect of the change on a exempt
status and foundation status of your organization.
Your organization is required to file Form 990, Return of Organization Exempt from Income T , only if its
gross receipts each year are normally more than $25,000. If a return is required, it must be fib d by the 15th
day of the fifth month after the and of the organization's annual accounting period. The law poses a
penalty of $20 a day, up to a maximum of $10,000, when a return is filed late, unless there isasonable
cause for the delay.
All exempt organizations (unless specifically excluded) are liable for taxes under the Federal ( surance
Contributions Act (social security taxes) on remuneration of $100 or more paid to each empid as during a
calendar year. Your organization is not liable for the tax imposed under the Federal Unemplo ent Tax Act
(FUTA).
Organizations that are not private foundations are not subject to the excise taxes under Chad er 42 of the
Code. However, these organizations are not automatically exempt from other federal excise' xes.
Donors may deduct contributions to your organization as provided in section 170 of the Code Bequests,
legacies, devises, transfers, or gifts to your organization or for its use are deductible for fede I estate and
gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of tl e Code.
e. 6 E
-2-
Little Theater NC tisfiics rg.PIInn lv?dia
23-73571
Your organisation is not requkettolftSderti income tax returns unless it is subject to ft: on unrelated
business Wow under section 511 WG : if your organization is subject to this tax, must his an . ;
income tax return on the Form 89i * 'ftet* Organization Business Income Tax Retum. this letter, we
are : _• ?nition's present or proposed activities are related trade or not - •°.. ..
business as defined in section 613` O ' e.
The low requires you to make your ortianization's annual return available for public insp n without charge
for three years after the duo dtite• of the return. If your organization had a copy of its ? pkow for
rfte iofone?aan?Ort on July 15.:1987, it is also required ? iY?ake available for public in n a'copy of
l who requests
" : ; etippel tents. and the exemption letter to any hfiv"
such documents In person Or in writing. You can charge only a reasonable fee for reprod and actual
pc?etage costs •for ttie:oc?pied ?. The law does not require you to provide copies of inspection
cfl?itiiiii?jerltltngm:onths.lnternet (World Wide ebb.. You may
be Ilable=f kr s '' O r: iji €o[=a Y tI not matte. these documents avala for public
inspection (up to a maxirnum -Of $40,000 in the case of an annual return).
Beeauso WMMW id iii; (yiPg6y4oesti r m about. your organizabon's exempt statO and fountid n
status, you should keep it with the organization's permanent records.
If y6?u`i1i?Ve=ohyl° ?stipfie;'p1 Faae`i l( isolmt telophone number shown in the heading of 1hls letter.
Thle fetttar`fitis'yoa? t?ratticarript>tatus:: .
RM265 ro-N) REMKW DOMEC COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BUREAU OF BUSINESS TRUST FIND TAXES
POM
HARRISA 112M09 SALES AND USE TAX
CERTIFICATE OF EXEMPTION
LITTLE THEATER MECHANICSBURG
PO BOX 325
MECHANICSBURG PA 17055-0325
Entity ID: ............................. 23-7360011001
ber:
...
i
N 1-7
724-21
................
ce
um
Not
Notice Date: ........................ Septem 22, 2009
Account Number: ................ 7
Exemption Type: ................. NON-PR FIT
%
Void After: ........................... 12
April 30,
USE OF THIS CERTIFICATE FOR PERSONAL OR NONEXEMPT STATUS. PURCHASES WILL RESULT IN
CANCELLATION OF EXEMPT AT
Always refer to your Account Number in cwnwondence.
If your organization changes its name, address or ceases operation, complete the appr to sections below
and return this form to: PA Department of Revenue, Bureau of Business Trust Fund Tax , Exemption Unit,
PO Box 280909, Harrisburg, PA 17128-0909. Any questons may be addressed al Hthe ab ear( and/or Speaking
(717) 783-5473; TT # Only 1-800-447-3020 (Service for Taxpayers With Sped
Needs).
Signature and Title of Authorized Representative
Print Name
Date
Telephone No:( `711) 319 - SS Q 0
REV-woAS+(s-os)m PENNSYLVANIA EXEMPTION
CERTIFICATE This form carrot be used to
CHECK ONE: obtain a Sole Tax License
pennsylvania Number, PTA cense Number
DEPARTMENT OF REVENUE IM STATE OR LOCAL SALES AND USE TAX or ??? S g,
BURt:AU of ? STATE OR LOCAL HOTEL OCCUPANCY TAX
BUSINESS TRUST FUND TAXES ? PUBLIC TRANSPORTATION ASSISTANCE TAXES AND FEES (PTA)
Po BOX 281go1 ? VEHICLE RENTAL TAX (VRT) Read l structions
HARRISBURG, R417u9-ogos Please Print On Re se Carefully
or
e
CHECK ONE: ® PENNSYLVANIA TAX UNIT EXEMPTION CERTIFICATE (USE FOR ONE TRANSACTION)
? PENNSYLVANIA TAX BLANKET EXEMPTION CERTIFICATE (USE FOR MULTIPLE TRANSACTIONS)
Name of Seller, Vendor, or Lessor
Street City State ZIP Code
NOTE: Do not use this form for claiming an exemption on the registration of a vehicle. To claim an exemption from tax for a motor vehicitl, trailer, sernwraiier
or tractor with the PA Department of Transportation, Bureau of Motor Vehicles, use one of the following forms:
FORM MV -1 Application for Certificate of Title (first time registrations)
FORM MV 4ST Vehicle Sales and Use Tax Return/Application for Registration (other registrations)
Property and services purchased or leased using this certificate are exempt from tax because: (Select the appropriate paragraph from 09 back of this form,
check the corresponding block below and insert information requested.)
? 1. Property or services will be used directly and predominately by purchaser in performing purchaser's operation of.
i
? 2. Purchaser is alan:
? 3. Property will be resold under License Number (if purchaser does not have a PA Sales' fax License Number,
include a statement under Number 7 explaining why a number is not required.)
® 4. Purchaser is Won: Non-profit Educational Institution holding Exemption Number 75-289-306 1
? 5. Property or services will be used directly and predominately by purchaser performing a public utility service.
? PA Public Utility Commission PUC Number and/or ? US Department of Transportation MCIMX
? 6. Exempt wrapping supplies, License Number . (If purchaser does not have a PA Sales I ax License Number,
include a statement under Number 7 explaining why a number is not required.)
? 7. Other
(Explain in detail. Additional space on reverse side.)
I am authorized to execute this Certificate and claim this exemption. Misuse of this Certificate by seller, lessor, buyer, lessee, or their rep entative is
punishable by fine and imprisonment
Name of Purchaser or Lessee Signature EIN Dote
Little Theatre of Mechanicsburg
Street City State ZI Code
915 S. York Street Mechanicsburg PA 1 055
1. ACCEPTANCE AND VALIDITY'
For this certificate to be valid, the sellerllessor shall exercise good faith in accepting this certificate, which includes: (1) the certifid to shall be completed
properly; (2) the certificate shall be in the selledlessor's possession within 60 days from the date of salellease; (3) the certificate dd a not contain informa-
tion which is knowingly false; and (4) the property or service is consistent with the exemption to which the customer is entitled. For m t refer to
Exemption Certificates, Title 61 PA Code §32.2. An invalid certificate may subject the sellerllessor to the tax.
2. REPRODUCTION OF FORM:
This form may be reproduced but shall contain the same information as appears on this form.
3. RETENTION:
The seller or lessor must retain this certificate for at least four years from the date of the exempt sale to which the certificate applies. j
DO NOT RETURN THIS FORM TO THE PA DEPARTMENT OF REVENUE.
4. EXEMPT ORGANIZATIONS:
This form may be used in conjunction with form REV-1 715, Exempt Organization Declaration of Sales Tax Exemption, when a puo as of $200 or more is
made by an organization which is registered with the PA Department of Revenue as an exempt organization. These organizations assigned an exemp-
tion number, beginning with the two digits 75 (example: 75-00000-0).
GENERAL INSTRUCTIONS
Those purchasers set forth below may use this form in connection with the claim for exemption for the following taxes:
a. State and Local Sales and Use Tax,
b. PTA rental fee or tax on leases of motor vehicles;
c. Hotel Occupancy Tax if referenced with the symbol (0);
d. PTA fee on the purchase of tires if referenced with the symbol (+);
e. Vehicle Rental Tax (VRT)
EXEMPTION REASONS
1.) Property and/or services will be used directly and predominately by purchaser in performing purchaser's operation of.
A. Manufacturing B. Mining C. Dairying D. Processing E. Farming F. Shipbuilding
This exemption is not valid for property or services which are used in: (a) constructing, repairing, or remodeling of real property, other .1n real property which
is used directly in exempt operations; or (b) maintenance, managerial, administrative, supervisory, sales, delivery, warehousing or other onoperetional activi-
ties. Effective October 1, 1991, this exemption does not apply to certain services and PTA tire fee.
2.) Purchaser is elan:
+ A. Instrumentality of the Commonwealth.
+ B. Political subdivision of the Commonwealth.
+ • C. Municipal Authority created under the `Municipality Authorities Acts".
+ * D. Electric Cooperative Corporations created under the 'Electric Cooperative Law of 1990'.
• E. Cooperative Agricultural Associations required to pay Corporate Net Income Tax under the Cooperative Agricultural Assodaft! Corporate Net
Income Tax Act (exemption not valid for registered vehicles).
+ • F. Credit Unions organized under °Federal Credit Union Act" or Commonwealth "Credit Union Act".
+ e G. United States Government, its agendes and instrumentalities.
e H. Federal employee on official business (Exemption limited to Hotel Occupancy Tax only. A ropy of orders or statement from suorvisor must be
attached to this certificate.)
I. School Bus Operator (This Exemption Certificate is limited to the purchase of parts, repairs or maintenance services upon ve*les licensed as
school buses by the PA Department of Transportation. For purchase of school buses, see NOTE below.)
3.) Property and/or services will be resold or rented in the ordinary course of purchaser's business. If purchaser does not have a PA Sales, ax License Number,
complete Number 7 explaining why such number is riot required. This Exemption is valid for property or services to be resold: (1) in original form; or (2) as an
ingredient or component of other property.
4.) Renewable Enures beginning with Permanent Exemptions beginning with Special Exemptions:
the two numbers 75: the two numbers TO:
A. Religious Organization E. School District F. Direct Pay Permit Holder
B. Volunteer Firemen's Organization +a G. Individual Hiding Dlplomis? ID
C. Nonprofit Educational Institution H. Keystone Opportunity Zone
D. Charitable Organization I. Tourist Promotion Agency
Exemption limited to purchase of tangible personal property or services for use and not for sale. The exemption shag not be used by a ntractor performing
services to real property. An exempt organization or institution shall have an exemption number assigned by the PA Department of Reven arch diplomats shall
have an identification card assigned by the Federal Government. The exemption for categories "A, B, C and D" are not valid for propertyr' sod for the following:
(1) construction, Improvement, repair or maintenance or any real property, except supplies and materials used for routine repair or intanance of the real
property; (2) any unrelated activities or operation of a public trade or business; or (3) equipment used to maintain real property.
5.) Property or services will be used directly and predominately by purchaser in the production, delivery, or rendition of public utility services ? s defined by the PA
Utility Code.
This Exemption is not valid for property or services used for the following: (1) construction, improvement, repair or maintenance of real perty, other than real
property which is used directly in rendering the public utility services; or (2) managerial, administrative, supervisor, sales or other nono rational activities; or
(3) tools and equipment used but not Installed in maintenance of facilities or direct use equipment. Tools and equipment used to repair "dl ct use property are
exempt from tax.
6.) Vendor/Seller purchasing wrapping supplies and nonreturnable containers used to wrap property which is sold to others.
7.) Other (Attach a separate sheet of paper if more space is required.)
Gothie Van Allen LLC
Attorneys
September 3, 2010
VIA HAND DELIVERY
David D. Buell, Prothonotary
1 Courthouse Square
Suite 100
Carlisle, PA 17013
RE: The Little Theatre of
Pro ert Tax Valuation Pennsylvania
cation and Exem
tion A eal
Dear Mr. Buell:
On behalf of our client, The
for Review and A Little Theatre of Mech
enclosing our f Ppeal regarding its pro a
rty anlcsburg Pennsylvania, I am 1
rm's check number 4683 in theme valuation and exemption appeal.
$92.00 in full payment c
Please acknowledge recei
additional Pt of the Petition and Appeal and fee
copy of the document, payment b
Please call by date-stay
me if you have any questions.
Sincerely,
Paul R. Morcom
Enclosures
Harrisburg
Conlftlercc Towers - 12th Floor
SOU North Second Street, Harrisbwg pA 17101
717.214.4455 (t) 717 214.4567 to
www.gvafirm.com
to: rm.com
P.O. Box 1126
Harrisburg, PA 171 os- 1126
I I i East Market Street.
717.444.8455 Fork. A,
(t) 717.448
19 a Petition
also am
.11 filing
the
Iork
ite 101
17401
99 (t)
u
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
THE LITTLE THEATRE OF
MECHANICSBURG PENNSYLVANIA,
Appellant
V.
PROPERTY TAX VALUATION AND
EXEMPTION APPEAL
NO.
CUMBERLAND COUNTY BOARD OF
ASSESSMENT APPEALS,
Respondent
RULE TO SHOW CAUSE
NOW, this 9 day of September 2010, upon consideration of the foregoing petition,
it is hereby ordered that:
(1) a rule is issued upon the Respondent to show cause why the Appellant is not
entitled to the relief requested;
(2) the Respondent shall file an answer to the Petition within 20 days after the
Petition is served on the Respondent;
(3) a hearing shall be scheduled upon motion by any party; and
(4) notice of entry of this order shall be provided by the Appellant to all interested
parties in accordance with Pa.R.C.P. 440.
I
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BY THE. COURT:
Stephen D. Tiley, Esquire Supreme Court I.D. No.32318
Attorney for Cumberland County
Board of Assessment Appeals
5 South Hanover Street Tel: 717-243-5838
Carlisle Pennsylvania 17013 Fax: 717-243-6441
THE LITTLE THEATRE OF IN THE COURT OF COMMON PLEAS
MECHANICSBURG, PENNSYLVANIA OF CUMBERLAND COUNTY,
PENNSYLVANIA
Appellant
CUMBERLAND COUNTY
BOARD OF ASSESSMENT APPEALS
NO. 10-5713 CIVIL
Respondent
ANSWER
AND NOW, comes the Cumberland County Board of Assessment Appeals, by Stephen
D. Tiley, Esquire, Assistant Cumberland County Solicitor for Tax Matters, and files this Answer
to the Petition for Review of and Appeal from the Decision of "The Cumberland County Board
of Assessment Appeals," of which the following is a statement:
1. Admitted in part. Denied in part. It is admitted that the Court has jurisdiction
pursuant to the General County Assessment Law as cited. However, Cumberland County is
currently a Fourth Class County and as such the specific authorization for this appeal to Court is
Section 704 of The Fourth to Eighth Class County Assessment Law. (72 P. S. §5453.704)
°~ ~ ---~
2. Admitted.
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3. Admitted. d~-~, ~ ~
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4. Admitted.
5. Admitted.
6. Admitted.
7. Admitted.
8. Admitted.
9. Admitted.
10. Admitted.
11. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required.
12. Admitted in part. Denied in part. It is admitted that Appellant believes that the
property should be exempt from real estate taxes, it is denied that the property should in fact be
exempt from real estate taxes. The same being a conclusion of law to which no responsive
pleading is required.
13. Admitted in part. Denied in part. It is assumed that Appellant believes that the
assessment of the property exceeds its actual fair market value, and it is admitted that Appellant
maintains that belief, however it is denied that the assessment exceeds the fair market value of
the property, the same being a conclusion of law to which no responsive pleading is required.
14. Admitted.
15. Admitted in part. Denied in part. The averments of this paragraph are factually
admitted. Any implication that a determination that an organization is exempt from federal
income taxes pursuant to Section 501(c)(3) is determinative of the issue of whether or not this
particular property is exempt from real estate taxes is denied as a conclusion of law to which no
responsive pleading is required.
16. Admitted in part. Denied in part. The averments of this paragraph are factually
admitted. Any implication that the possession of a sales and use tax exemption certificate is
determinative of the question of whether or not the subject property is exempt from real estate
taxes is denied as a conclusion of law to which no responsive pleading is required. However, it
is noted that The Institutions of Purely Public Charity Act does provide that for institutions
having annual program service revenue of less than $10,000,000, the possession of a sales and
use tax exemption does shift the burden of proof from the taxpayer to the taxing bodies. (10 P.S.
§376)
17. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
18. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
19. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
20. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
21. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
22. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
23. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
24. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
25. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
26. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
27. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
28. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
29. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
30. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
31. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
32. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
33. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
34. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
35. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
36. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required.
37. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
38. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required.
39. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required.
40. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
41. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
42. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
43. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
44. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
45. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded.
46. Denied. The averments of this paragraph set forth facts which are outside the
knowledge of the Respondent. Strict proof at trial is demanded. By way of further Answer, the
averments of this paragraph set forth a conclusion of law to which no responsive pleading is
required.
47. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required.
48. Denied. The averments of this paragraph set forth conclusions of law to which no
responsive pleading is required. By way of further Answer, the citation to 72 P.S. §5020-
204(x)(3) is to The General County Assessment Law. The citation to 72 P.S. §5342 et seq. is to
the law relating to Assessments in Counties of the Second Class A and Third Class. Cumberland
County is currently a Fourth Class County and therefore the applicable statute is the Fourth to
Eighth Class County Assessment Law and the specific provision is 72 P.S. §5453.202(x)(3). The
citation to 10 P. S. §375(x) is a citation to the Institutions of Purely Public Charity Act which is
applicable to the within appeal.
WHEREFORE, Respondent, Cumberland County Board of Assessment Appeals, prays
Your Honorable Court for an Order denying Appellant's appeal, denying the exemption of the
property, affirming the assessment of the property, or fixing the assessment of the property at an
amount that the Court may deem just and proper.
Dated: ~A ,~ /~ Respectfully submitted,
~•
By ~ ' ~~
Stephen D. Tiley, Esquire
Assistant Cumb. Cty. Solicitor For Tax Matters
5 South Hanover Street
Carlisle, PA 17013
(717) 243-5838
Supreme Court I.D.#32318
VERIFICATION
I verify that the statements made in the foregoing Answer are true and correct,
partially upon personal knowledge and partially upon my belief; to the extent language
in the Answer is that of my attorneys, I have relied upon my attorneys in making this
Verification. I understand that false statements herein are made and subject to the
penalties of 18 Pa. C.S. §4904 relating to unsworn falsification to authorities.
,- ),,
f~ ~
Dated: ,/c~~s~~ onnie M. Mahoney, Chief Assessor
Stephen D. Tiley, Esquire Supreme Court I.D. No.3231
Attorney for Cumberland County
Assessment Office
5 South Hanover Street Tel: 717-243-5838
Carlisle. Pennsylvania 17013 Fax: 717-243-6441
THE LITTLE THEATRE OF IN THE COURT OF COMMON PLEAS
MECHANICSBURG, PENNSYLVANIA OF CUMBERLAND COUNTY,
PENNSYLVANIA
Appellant
CUMBERLAND COUNTY NO. 10-5713 CIVIL
BOARD OF ASSESSMENT APPEALS
Respondent
CERTIFICATE OF SERVICE
I hereby certify that I served a true and correct copy of the foregoing Answer by
placing a certified true and correct copy of the same in the United States mail, postage
pre-paid, addressed to:
Gothie Van Allen LLC
Paul R. Morcom, Esquire
Counsel for Appellant
Commerce Towers-12th Floor
300 North Second Street
Harrisburg, PA 17101
Atty. I.D. #89314
Te. No. (717)909-7263
Date: ~p/S/!~ ~'' /,-~
~- `'//
Stephen D. Tiley, Esquire
Assistant Cumb. Co. Solicitor
5 S. Hanover Street
Carlisle, PA 17013
(717) 243-5838
Attorney I.D.#32318
NAUMAN, SMITH, SHISSLER & HALL, LLP
By: J. Stephen Feinour, Esquire
Supreme Court ID#24580
200 North Third Street, P. O. Box 840
Harrisburg, PA 17108-0840
Telephone: (717) 236-3010
Facsimile: (717) 234-1925
e-mail: sfeinour@nssh.com
OF THFILED-OFFICE
ROARY
2010 NOV 23 PM 12: 2 B
CUMBERLAND COUNTY
PENNSYLVANIA
Attorneys for Upper Allen Township
THE LITTLE THEATRE OF : IN THE COURT OF COMMON PLEAS
MECHANICSBURG, PENNSYLVANIA : CUMBERLAND COUNTY, PENNSYLVANIA
Appellant
VS. CIVIL ACTION - LAW
CUMBERLAND COUNTY
BOARD OF ASSESSMENT APPEALS, Docket No. 2010-5713
Respondent
NOTICE OF INTERVENTION
Notice is hereby given that Upper Allen Township intervenes in this proceeding in support
of the decision of the Cumberland County Board of Assessment Appeals.
Date: November 22, 2010
NAUMAN, SMITH, SHISSLER & HALL, LLP
B
Apremee n Feinour, Esquire
D #24580
Court I
200 North Third Street, 18"' Floor
P. O. Box 840
Harrisburg, PA 17108-0840
Phone: 717-236-3010
Fax: 717-234-1925
E-Mail: sfeinour@nssh.com
Solicitor for Upper Allen Township
CERTIFICATE OF SERVICE
AND NOW, on the date stated below, I, J. Stephen Feinour, Esquire, of the firm of
Nauman, Smith, Shissler & Hall, LLP, hereby certify that I this day served the foregoing "Notice
of Intervention" by depositing a copy of the same in the United States Mail, first class, postage
prepaid, at Harrisburg, Pennsylvania, addressed to the following:
Paul R. Morcom, Esquire
Gothie Van Allen LLC
Commerce Towers - 12th Floor
300 N. Second Street
Harrisburg, PA 17101
Stephen D. Tiley, Esquire
5 South Hanover Street
Carlisle, PA 17013
Philip H. Spare, Esquire
Stock & Leader
221 W. Philadelphia, St., Suite E600
York, PA 17401-2994
Edward L. Schorpp, Esquire
35 Thrush Drive
Carlisle, PA 17013
NAUMAN, SMITH, SHISSLER & HALL, LLP
By:
J. ephen Feinour, Esquire
Supreme Court ID# 24580
200 North Third Street, P. O. Box 840
Harrisburg, PA 17108-0840
Telephone: (717) 236-3010
E-Mail: sfeinour@nssh.com
Counsel for Upper Allen Township
Date: November 22, 2010
THE LITTLE THEATRE OF : IN THE COURT OF COMMON PLEAS
MECHANICSBURG, PENNSYLVANIA : OF CUMBERLAND COUNTY,
: PENNSYLVANIA
Appellant
CUMBERLAND COUNTY NO. 10-5713 CIVIL M
, r
BOARD OF ASSESSMENT APPEALS
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C= X -r•y
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Appellee
Tax Parcel No. 42-25-0032-105 ZZ
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ORDER
AND NOW, this Z'3 day of June, 2011, upon Stipulation and Joint Motion for
Agreed Order, it is Decreed and Ordered that the property which is the subject of this appeal,
shall be exempt as of January 1, 2011, effective for taxes imposed first on and after January 1,
2011, and that it shall remain exempt until changed pursuant to Pennsylvania law. The
Assessment Office of Cumberland County retaining the right to change the exempt status to
taxable at any time with a change of assessment notice to the owner of the property, and an
opportunity for the owner of the property to challenge anew the taxability status of the property,
at that time, pursuant to Pennsylvania law, and the appeal dates set forth in said notice and
such law. The taxing bodies retain the right to challenge the exempt status of the property by
appeal to the Board of Assessment Appeals at any time. The Appellant, or any future owner of
the property, retains the right to challenge the assessed value of the property at any time
pursuant to Pennsylvania law, and to defend any future change in status to taxable as provided
by Pennsylvania law.
The Cumberland County Assessment Office shall promptly notify the appropriate taxing
bodies of the change in status to exempt as of January 1, 2011, and instruct the taxing bodies to
make any appropriate refunds.
By The Court
Kevin A. He s. P.J.
i
cc: ? Paul R. Morcom, Esquire
J. Steven Feinour, Esquire ? ?a
v' Philip H. Spare, Esquire toP 14411
Stephen D. Tiley, Esquire J?p6