The Idaho Supreme Court has ruled that the J.R. Simplot Foundation was not eligible for a tax exemption while constructing its “urban meeting
place” in downtown Boise in the 2015 tax year.
The state’s highest court said the structure did not qualify for a charitable tax exemption because it was under construction and not being used exclusively for charitable purposes.
The five-story complex is a community gathering place and creative center. The facility was roughly 70 percent complete in early 2015 and held its grand opening by the end of that year.
The foundation argued the facility conducted charitable work during construction because approximately 500 people, including prominent community members, either toured or listened to presentations at the facility in 2014. The Supreme Court’s decision affirms a prior district court ruling, which agreed with Ada County that the foundation did not qualify for a tax exemption in 2015.
The county originally billed the foundation $675,000 in property taxes for the 2015 tax year, but the foundation is currently challenging the county’s assessment. In Idaho, nonprofits are generally exempt from paying property taxes, as well as federal and state income taxes.
In 1999, Idaho lawmakers carved out a special exemption for hospitals that allowed them to receive a property tax exemption during construction.
The foundation’s attorneys argued the law should also apply to other nonprofits, but the court disagreed. (AP)
