FAYETTEVILLE — The University of Arkansas has asked Washington County Judge Marilyn Edwards to reinstate real and personal property tax exemptions denied last month by the Equalization Board.
A hearing has been set for 9 a.m. Nov. 13.
Assessor Jeff Williams denied tax exemptions on assessments in 2010, 2011 and 2012 because the properties were for-profit businesses in university buildings. Williams said the exemptions would give those businesses an unfair tax advantage.
The Equalization Board upheld Williams’ denial of the exemptions earlier this month.
The university claims it’s immune from ad valorem taxes and the properties should be exempt. The amount of taxes under appeal is about $94,000.
In its petition for appeal, the university states Williams’ action reverses the “historic tax treatment” which dates back to the school’s founding in 1871. The university asks it be declared constitutionally immune and exempt from the ad valorem taxes.
The businesses in question, such as Arsaga’s in the law school, TCBY, Subway and Walmart on Campus in the Garland Avenue Center, are on campus as a service to attract and retain students as the university and the state try to increase college graduates.
At issue are 46 parcels of real property, including 25 houses owned by the university and rented at market cost. Some are rented to students; other tenants aren’t associated with the university.
Williams also wants to tax the value of microwaves, merchandise, and other personal property owned by the university and mostly used by Chartwells, a food service company contracted by the university with permission to sell popular fast food products from Burger King, Papa John’s, Quiznos, Chick-fi l-A and others.
Edwards decision can be appealed to the circuit court.
George Butler, county attorney, said the case could end up before the Arkansas Supreme Court as it makes its way through appeals.