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Commission denies request to freeze property taxes on Montgomery school building
Summary
Fayette County commissioners voted to deny a request from school operators and the building'owner for temporary property tax relief after the county assessor sharply reduced the assessment but said law limits classification changes; the applicant was advised to appeal to the Office of Tax Appeals.
Fayette County commissioners on Feb. 19 denied a request from representatives of a Montgomery school and the building'owner for a temporary freeze or other property tax relief while the owner seeks repairs.
The appeal came from Mark Ryan, who told the commission his group had purchased the former Economic Development Corporation building (the former GC Murphy location) to house a nonprofit school tied to a 501(c)(3) called My Life by Power and a for'profit real estate arm called FRE. Ryan said inspections and engineering revealed that external, contiguous walls were not present after demolition of an adjacent structure, creating an unanticipated structural repair bill. "We probably got a half a million to a million dollar fix on top of the improvements that we're going to have to make," Ryan said, and he asked the commission for any relief available "while we figure out a fix."
The Fayette County assessor, Michael Young, told the commission he had reduced the property's total assessed value from about $2,288,600 to $384,400 to reflect conditions he believed were supportable. "I've reduced it as far as I'm comfortable reducing it," Young said. He advised the commission that state law limits the county's authority to change a property's classification or taxability once certain procedures have been triggered, citing the relevant West Virginia code provision the assessor referenced.
Commissioners discussed the separate corporate structure for the school (nonprofit) and the real estate owner (for'profit). A commissioner noted that the owners could have structured the real estate entity differently to pursue exemption but that the county must follow the law as written. The panel voted to deny the request for tax relief. The commissioners also advised Ryan that an appeal may be filed with the West Virginia Office of Tax Appeals; one commissioner explained the office can hear valuation disputes and, if it reduces value, an exoneration would follow after the tax ticket is issued.
Ryan told commissioners he and local officials are pursuing grants and donations and that the school currently serves about 27 children aged roughly 6 to 12. Young said the most recent appraisal provided to the assessor's office dated to roughly October or November of the prior year and that the assessor's final market value as set was within the statutory range the assessor must follow.
The commission'level denial leaves the owner with administrative appeal options and the option to provide further documentation to the assessor or to the Office of Tax Appeals.
The commission also suggested the owner return with a comprehensive plan if he seeks different relief in the future.
