New York – Court Says Actors’ Apartments Are Tax-Exempt

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    New York – Two upstate New York apartment buildings that house professional actors for a theater group’s summer productions qualify for a tax exemption, New York’s highest court ruled.

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    According to the Court of Appeals, the nonprofit Merry-Go-Round Playhouse needs the housing in Auburn to attract talent. The arts organization uses the 30 apartments to help compensate actors recruited for short work and low pay.

    Chief Judge Jonathan Lippman wrote that the court in previous decisions upheld tax-exempt apartment buildings for a hospital’s staff and families and housing at a religious group’s summer camp for teaching faculty and staff. This was the first time they’d addressed it for an arts organization, but the law doesn’t favor one purpose over another.

    The court’s other six judges agreed.

    Auburn in 2011 rejected the group’s exemption applications, and a judge agreed. The group also runs a year-round youth theater.

    But higher courts say Merry-Go-Round was clearly organized for a tax-exempt purpose, “showcasing and encouraging appreciation of the performing arts,” thereby advancing the community’s education and “moral and mental improvement.”

    The theater in the Finger Lakes region put on musicals last summer including “Mary Poppins” and “Damn Yankees”.

    Andrew Fusco, the city’s corporation counsel, said the buildings together were assessed at just under $1 million with an annual tax bill of about $30,000 for two apartment complexes at either end of town. He said the loss of the money hurts. The statewide associations of towns and mayors filed briefs supporting Auburn.

    “This is not some community playhouse that is a bunch of local amateurs. This is a professional theater,” Fusco said. “Where does that stop? What about the house of the local librarian, the curator of the local museum, the fair director?”

    The theater’s attorney, Charles Lynch, said the decision is critical to the well-being of his nonprofit client, which relies not only on income from its performances, but also charitable donations.

    Fusco and Lynch disagreed whether it’s a sweeping decision that will bring more tax breaks.


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    9 years ago

    Ridiculous