Tax dispute likely to be settled by court

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January 1, 2009

Anonymous The Joplin Globe Thu Jan 01, 2009, 09:53 PM CST

By Derek Spellman

dspellman@joplinglobe.com

By design, The Bridge employs an unconventional approach to missionary work, its officials say.

The multimillion-dollar building at 3405 S. Hammons Blvd. boasts climbing walls, a basketball court, a skate park, an arcade, a concert venue and a cafe.

But Bridge workers say those features are only tools that help them attract teens in a crowded cultural landscape. The goal of the Christian youth organization, they say, is for Bridge workers to connect with young people first through the activities, get to know them and then invite them to learn about Christ.

Participating in the Christian activities is optional, but for those who want to participate, weekly Bible study groups, worship services, and Christian books and Bibles are available, according to a statement from Dan Mitchell, president and chief executive officer of the center.

The Bridge has acknowledged that its approach is novel, but the staff argues that a novel approach is needed for youth ministries.

It is an argument that likely will play out this year in a Newton County court, as The Bridge seeks to recoup about $130,000 in local taxes that the State Tax Commission has ruled it should pay to the county.

Paying under protest

The Bridge has paid, under protest, about $66,000 in real-estate and personal-property taxes owed for 2007. It mailed payment for the 2008 taxes on Wednesday, and that, too, was under protest, said Lindsay Matush, executive director for The Bridge.

“These are taxes we believe we should be exempt from,” she said.

Matush said The Bridge will petition Newton County Circuit Court to review whether the property is taxable. The petition will argue that The Bridge should be exempt as a not-for-profit, religious organization. The Bridge has 90 days from the time it paid the taxes to file the petition, and a judge will determine whether The Bridge should pay taxes and, if so, how much.

The Bridge will contend that it has precedent on its side, Matush said. She noted that it qualified for tax-exempt status when it was located in Jasper County. Before opening in March 2006 at its current location, The Bridge operated for several years at 3411 N. Range Line Road. At that location, it offered ramps for skateboarding, skating and biking; a climbing wall; game tables; a computer lab; and a small concert space.

“It’s exactly the same. We just get to serve more teens,” Matush said of the new, larger building.

Lisa Perry, administrative assistant for the Jasper County assessor’s office, confirmed that The Bridge received tax-exempt status while operating at 3411 N. Range Line Road because officials determined that it constituted a not-for-profit organization using its property for religious purposes.

When asked for further comment, she referred questions to Assessor Don Davis.

Davis was out of the office all last week. Several efforts to reach him for comment outside the office were unsuccessful.

State ruling

Bridge officials met with Newton County tax authorities in the summer of 2007 to discuss whether the organization qualified for an exemption. Local tax authorities deferred to the State Tax Commission, Newton County Assessor Gloria Gourley said, because it was “not clear-cut” whether The Bridge qualified as a church.

A hearing officer from the State Tax Commission eventually ruled on Oct. 16, 2008, that The Bridge did not qualify.

In the ruling, the officer said The Bridge had failed to produce evidence showing that the primary use of its real and personal property was for “charitable, religious or educational purposes,” other than brochures stating that it was a religious organization.

The officer also took some issue with the fact that The Bridge sold materials through a skate shop and coffee bar, and charged fees for certain activities, while failing to present financial records showing that those activities did not constitute a commercial venture.

“The Hearing Officer has nothing but speculation as to how skateboarding teenagers are connected to Jesus Christ at The Bridge,” the officer, W.B. Tichenor, wrote. “It is left to mere surmise to establish how or if an espresso bar strengthens a teenager’s Christian relationship. The giving of a free T-shirt with the purchase of a three-hour session pass might connect a teenager with a local Christian church, but it would be simple conjecture on the part of the Hearing Officer to so conclude.”

The Bridge appealed that ruling to the full State Tax Commission, this time with a new attorney, who argued that the organization had not produced such evidence partly because Newton County authorities had technically never challenged The Bridge’s arguments.

The appeal was accompanied by several years of financial statements, a federal tax return, and an affidavit from Mitchell detailing the weekly Bible studies and worship services that are offered.

But that appeal arrived Nov. 19 — a few days after the 30-day deadline from the original ruling — and thus cannot be heard, according the State Tax Commission.

A phone message left for the attorney who prepared the appeal, Todd Massa, of St. Louis, was not returned.

Call for donations

Less than two weeks ago, The Bridge put out a call for donations to replenish its emergency reserves, which it used to pay the taxes. It is still asking for donations.

Matush said The Bridge had been saving money in case it had to pay, but that the tax burden comes at a time when donations have declined because of the economic downturn. The Bridge’s annual operating budget, including payroll, runs about $2 million, she said.

About half of The Bridge’s revenue is derived from donations and grants, while the other half comes from activity fees and from sales at the cafe or skateboard shop, she said. Skateboarding supplies are sold below fair-market value, she said, and can be donated to teens who cannot afford them.

Matush defended the fees and the sale of goods at the shop and cafe, saying that the proceeds go right back into The Bridge and help make the organization not entirely reliant on donations.

Matush said that if The Bridge loses its bid in Newton County Circuit Court and the donation trend persists, the organization might have to consider measures such as reducing its marketing, delaying any expansion in programs, instituting a hiring freeze or, in a “very worst-case scenario,” reducing services.

“That is something we will have to play by ear,” she said.