[hackerspaces] Tax-exempt Geek Group hit with huge tax bill

[Loki]

Haven't seen this on the list so far... scary.

Sent to you by Loki via Google Reader: Tax-exempt Geek Group hit with
huge tax bill via Hack a Day by Mike Szczys on 3/16/10



Non-profit hackerspace The Geek Group has been hit with a hefty tax
bill despite their tax-exempt status. We featured a boom camera built
by the organization back in November. It is the goal of The Geek Group
to fulfill the thirst to explore and create by providing facilities,
peer group, and camaraderie that make knowledge and learning not only
acceptable, but desirable. In the video after the break you can hear a
bit about the organization’s role in servicing donated computers and
putting them out into the community, as well as its role in education
through groups like the Boy Scouts of America.

This is all done without the goal for profit and accordingly they have
attained 501(c)(3) status with the federal government (we’ve seen their
990 forms stating this). To the best of our knowledge this doesn’t mean
that they don’t need to pay property taxes, but it does make property
taxes ridiculously low (we’ve heard of one cent per acre for non-profit
land holdings before). That’s why it comes as quite a surprise when the
township slaps a sticker on the doors giving notice of seizure and
demanding payment for $47,652.78 in back taxes or the assets will be
auctioned off. The entire story, from The Geek Group’s point of view,
unfolds in a video of the quarterly Board of Directors meeting from
last Saturday.

We’re hoping this is just a mistake and can be remedied. That being
said, it’s not easy to run this type of operation. It’s unfortunate
that the Board of Directors needs to deal with a tax battle in addition
to fulfilling the mission of the organization. Good luck to them in
navigating the road ahead.



[Thanks Jeremy]


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