Nonprofit status results in hefty refund

Published 11:57 am Wednesday, January 2, 2019

Lunenburg Commissioner of the Revenue Liz Hamlett notified the Lunenburg Board of Supervisors during its meeting Dec. 13 that an organization, which had originally been taxed by the county, was found to be a 501(c)(3), a designation typically given to nonprofit organizations.

Hamlett said the Arrowhead Gun Club, Inc., a sports club, contacted the county office in November to notify the representatives of its nonprofit status, which would make the real estate parcels from the sports club exempt from taxation.

She said the organization was granted 501(c)(3) status by the Internal Revenue Service (IRS) in 1997. Hamlett said the organization has been taxed each year since 1997, with representatives of the office not aware of the organization’s nonprofit status.

“The Code of Virginia does permit the Commissioner to correct current and three years back,” Hamlett said, citing Virginia Code 58.1-3980. The Virginia Code also cites providing interest for the refund charge. Any refund beyond the current year and three years back would have to result from a court order.

Hamlett wrote a letter to the board of supervisors Nov. 30 requesting that the Commissioner of the Revenue office give Arrowhead Gun Club, Inc. the principle amount of $6,614.09 and interest of $1,396.97, coming to a total of $8,010.84.

Hamlett said the organization has to submit their articles of incorporation to the Commissioner of the Revenue office to have on file, and she said it appeared that submission had not been done in the past. Hamlett said she requested the articles of incorporation from the organization.

Members of the board voted to approve the refund to Arrowhead