Loss of tax-exempt status to be appealed

Part of property on Westside Road recently transferred to the Confucian Study Organization.
Photograph by Bruce Frisch

By Wiley Wood

The Hutterian Brethren used to be seen along West Side Road, the women in head scarves and long skirts, the children in straw hats, taking their Sunday walk or going to look for berries in the neighboring woods. Then, in the fall of 1999, the Hutterites sold their compound and moved away, retaining only a one-acre cemetery lot and the right to visit it.

The remaining 48-acre parcel, with its four dwellings and 12 commercial buildings, including a wood-timbered stone mansion, was bought by The Mission of Tao-Confucianism, a religious organization with offices in Flushing, N.Y. After an initial open house for members of the community, where it was explained that the property would be used as a religious retreat, the Mission largely closed in on itself.

So things stood until March 3 of this year, when The Mission of Tao-Confucianism transferred ownership of the compound for no money to a newly formed religious organization, Confucian Study Organization, whose offices are in Norfolk.

The formation of the new corporation in January of this year and the change of ownership were the result of discord on the board of directors, according to Dolores Schiesel, an attorney for Confucian Study Organization. The new organization will continue the practices and aims of the former owner.

As a religious organization, The Mission of Tao-Confucianism was exempt from town taxes. The Hutterites were partially tax exempt, though they did pay taxes on the buildings they used for making children’s toys and furniture. In fact, they were one of the top five taxpayers in town before their departure. With the structures no longer used for commercial purposes, the buildings have gone off the tax rolls.

In registering the title transfer with the town, Schiesel asked that the tax exemption be maintained, on the grounds that the change was one in name only and activities on the property would continue as before. These include owning and operating a Confucian temple; promoting the religion, philosophy, teachings, values and ethics of Confucianism; and providing educational programs related to Confucianism and Taoism.

Schiesel said that Confucian Study Association was applying to the Internal Revenue Service (IRS) for tax-exempt status.

Assessor Michele Sloane, after consulting with the town attorney, ruled that the new owners were liable for town taxes until they received nonprofit status from the IRS. Schiesel will appeal that decision to the Board of Assessment Appeals in April. The property has been appraised at $9 million.