FAYETTEVILLE — The Washington County Equalization Board on Tuesday denied an appeal by the University of Arkansas seeking to avoid paying property taxes.
Every year the board hears appeals from owners who dispute property values and tax assessments.
Attorneys for the university appealed to the board Sept. 17 after Jeff Williams, assessor, denied tax exemption requests for $10 million in real estate property and $387,323 in personal property.
The university will continue its appeal against taxation, said Scott Varady, associate general counsel for the university.
That $10 million includes the pharmacy at the Garland Center, student rental properties and properties set for demolition, construction and greenspace. The personal property includes equipment at Bed, Bath & Beyond, Clinique, Papa John’s, Burger King, and other restaurants contracted by the university through Chartwells, a food service company.
The board, during last week’s hearing, asked university attorneys to find other universities in the state that don’t pay property taxes. Wesley Cannon, board chairman, said he requested the information from the university by Friday.
Varady said Tuesday his offce was just about to send the information when he heard the board made its decision.
State law requires the board make a decision within 10 days after hearing an appeal.
NorthWest Arkansas Community College, Arkansas State University, the University of Central Arkansas, Arkansas Tech University and Southern Arkansas University don’t pay property taxes, unless it’s newly acquired property, according to a letter dated Tuesday from Varady to the board.
“Due to the press of other business, university officials have not had suff cient time to conduct additional research, but we would be happy to do so if the board desires further examples of state entities that are not subject to ad valorem taxes,” Varady wrote.
Williams said this week his staff found universities that pay property taxes. Those include NWACC, University of Arkansas at Little Rock, John Brown University, Arkansas Tech, Central Arkansas and Harding University.
State law allows the university to appeal the board’s decision to County Judge Marilyn Edwards by Oct. 14. Edwards must hold a hearing and make a decision by Nov. 15, said George Butler, county attorney.
Edwards denied appeals from the university last year. In January, the university filed a lawsuit seeking a refund for taxes paid in 2010 and 2011 and also to keep Washington County from taxing the university again.
Circuit Judge William Storey delayed the lawsuit because a similar case between the university and Pulaski County headed to the state Supreme Court. Both parties agreed to wait for a ruling.
Pulaski County and the university settled the case last week before reaching a Supreme Court hearing. That means the lawsuit in Washington County will likely continue after the Pulaski County lawsuit is fi nalized.