Meridian School, the latest private school in the area, will not have to pay property taxes, the Utah County Board of Equalization ruled Monday. The exemption status will save the school approximately $12,000 a year.
John Welch, a law professor at Brigham Young University representing Meridian, said: "This is a new decision. Up until now, (government entities) have taken the position that if a tax-exempt organization owns property and leases it, then it is subject to property tax."In the Meridian case, the board ruled that the school qualifies for property-tax exemption because the property is leased to a tax-exempt organization that uses the property exclusively for educational purposes.
Meridian School, a non-profit organization, leases the school at 931 E. Third North from the Catholic Church.
"If one party owns the building and is leasing it at market rates, there's a difference if they are using it to generate money or for their own charitable purposes," said Ron Smith, Utah County assessor. "I'm much more comfortable when an organization uses it for (its intended) purposes."
County Commissioner Sid Sandberg said: "In my view this is an opportunity (to help) if they are plowing new ground. There is a substantial need for schools like Meridian to provide alternatives to public education. In instances where they can show there is a non-profit owner that is exempt in any way, we ought to take the position that it is appropriate use for tax-exempt status."
Welch said, "This decision is good for the kids and good for the school."
Meridian School was formed by several BYU professors, local businessmen and parents of children previously enrolled at Waterford School, which closed a year ago. Instruction in the school is similar to the Waterford model.
Classes are offered for nursery through 12th grade.