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Freedom Preparatory Academy seeks $130,000 tax refund; county staff recommends denial
Summary
Freedom Preparatory Academy asked Utah County to refund about $130,000 in property taxes paid in 2014'2015; county staff recommended denial because the property was owned by a private LLC at the time. School representatives said the site was used exclusively for education and asked for parity with prior decisions.
Representatives from Freedom Preparatory Academy asked the county to refund roughly $130,000 in property taxes the academy paid in 2014 and 2015 while it was occupying school buildings in Utah County. The school's business manager said Freedom Prep is a 501(c)(3) nonprofit and argued that the property was used exclusively for education.
County staff recommended denying the refund request, saying the property and improvements were owned by a private LLC during the years in question; staff noted a prior case where a charter school that had its improvements assessed late received different treatment but said that fact pattern differed because assessment timing and ownership were not identical.
School leaders pressed for parity with previous decisions affecting charter schools and argued the result was effectively a penalty for acting prudently to secure financing and build campuses. Commissioners discussed statutory distinctions: a charter school or a nonprofit that owns property is typically exempt, while a for-profit LLC owner remains the taxed party. Commissioners asked staff to review supporting documents but expressed initial sympathy for staff's legal interpretation that the developer/owner, not the school operator, was the liable taxpayer for the years at issue.
No formal decision was made at the work session; commissioners agreed to continue review and hear clarifying documentation.
