BOE sides with Victory Ministries on most Camp Liwa parcels, holds vacant lot taxable

The Fairbanks North Star Borough Board of Equalization on Dec. 3 heard appeals from Victory Ministries over the assessor's denial of charitable property‑tax exemptions for several Camp Liwa parcels and buildings. After oral argument, the board granted the appellant's appeals on four parcels and upheld the assessor on a separate vacant lot. The board directed borough counsel to draft written findings of fact and conclusions of law for the parcels where relief was granted.

Steve Mahoney, attorney for Victory Ministries, told the board the legal question for 2025 was whether the properties "were used exclusively for charitable purposes" under AS 29.45.030. Mahoney argued the assessor misapplied case law and relied on dated information; he said the camp relies on volunteers and donations and that fees charged to some user groups are incidental. "This denial is simply wrong," Mahoney said during his opening.

Borough counsel for the assessor countered that the assessor's review of the record showed the northern parcels had significant off‑season use by paying guest groups and advertised retreat services. Counsel urged the board to consider earlier judicial analysis (a 2022 Superior Court decision that affirmed the assessor on similar facts) and emphasized the borough's view that all uses of a parcel must be analyzed to determine whether the property remains exclusively used for charitable purposes.

Board members questioned both sides about evidence gaps, including whether the record contained building‑by‑building income statements and whether guest groups were nonprofit organizations. Assessor counsel acknowledged the record did not include a detailed per‑building accounting but stressed the fee schedules and advertising in the assessor's packet as evidence of public, fee‑based use. Mahoney cited the camp's financial statements and said the camp operated at a loss in 2024 and offered scholarships on its website.

Votes and rationale - PAN 0217093 (large parcel including the lower summer camp): the board granted the appellant's appeal (vote 4–1). The majority concluded the borough had not shown the assessor's denial to be supported by the 2024 record for that lien year; one board member dissented citing mixed uses and prior rulings. - PAN 0136646 (small vacant lot): the board upheld the assessor and found the parcel nonexempt (vote 5–0). Both parties agreed vacant unused land is not exempt. - PAN 0217158 (mixed‑use parcel with equestrian center, staff housing and support buildings): the board granted the appellant's appeal (vote 4–1). Majority members found the record supported charitable uses or that the assessor's evidence was insufficient for the 2025 lien date. - PAN 0217107 (staff cottages/support buildings): board granted appellant's appeal (vote 4–1). - PAN 0217255 (single‑structure guest lodging): board granted appellant's appeal (vote 4–1).

Several board members and counsel noted the broader legal context remains unsettled. Appellant and assessor relied on different lines of Alaska case law — one showing that fees charged by or on behalf of nonprofits can preserve an exemption, another showing that public, fee‑based commercial uses can defeat it. The board majority treated the 2022 Superior Court ruling as persuasive but not binding for the separate 2025 appeals before them.

The board instructed borough counsel to prepare draft findings explaining the majority's bases for each parcel where the appeal was granted and scheduled a follow‑up meeting to review and adopt those written findings within the statutory timeframe. Once the board adopts final findings, the clerk will mail decisions to the parties.

What to watch next Because related litigation from earlier years remains pending before the Alaska Supreme Court, decisions in this hearing could be appealed and are subject to change if higher courts clarify the standard for charitable property exemptions in Alaska.

Key excerpts from the hearing record - "This denial is simply wrong." — Steve Mahoney, counsel for Victory Ministries (appellant). - "...the primary use of the property is for paid guest retreats..." — borough counsel summarizing assessor's record.

Methodology and sources This article synthesizes statements made on the public record during the Dec. 3, 2025 Board of Equalization hearing. Vote tallies and direct quotes above are taken verbatim from the hearing transcript and board roll‑call recorded at the meeting. Where the transcript used variant spellings for Camp Liwa and related names, this article uses the forms substantiated in the hearing record and in the parties' filings.