County Judge Rules Against University

— Washington County Judge Marilyn Edwards on Monday denied the University of Arkansas’ appeal for immunity or exemption from real and personal property taxes.

The decision paves the way for the university to appeal the case to the Washington County Circuit Court but that decision had not been made by late Monday afternoon.

Scott Varady, general counsel for the university, said he had not seen Edwards’ order, filed about 9:30 a.m. Monday with the County Clerk, but noted the decision was not “unanticipated.”

The university appealed a decision to Edwards from the Washington County Equalization Board and argued last week the university is immune from paying ad valorem taxes because it is a state entity and immunity is granted by the Arkansas Constitution, state laws and decisions by the Arkansas Supreme Court.

At issue is a total of 65 parcels Assessor Jeff Williams has declared are subject to real or personal property taxes totaling about $170,000 based on an assessed valuation of $3.3 million. The Washington County Equalization Board upheld Williams’ denial of exemption on the 65 properties.

Several of the properties in question are outside businesses, such as Walmart and franchise restaurants, which lease university space. Other properties are residences the university purchased for growth but currently rents.

During testimony before Edwards, Williams said the university was paying less in taxes this year than in 2009.

In a subsequent affidavit filed by the university Friday, Michael White, associate controller for the university, said the university was actually paying more for the 2011 tax year than in 2009.

The university contends businesses are on campus as a convenience for students.

Varady said he would consult with university officials but expects the university to pursue the matter in circuit court.

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