It all started with a comment left by Sold Out on The Optics are Terrible:
The Yacht Club was paying over $19K a year in advalorem. She showed them how to go non profit and quit paying local taxes run the non profit thru her and just pay her.
That comment raised two distinct questions in our minds here at Slabbed. The first question is whether or not the Bay Waveland Yacht Club was paying property taxes. The second question would pertain to the local Chamber of Commerce being involved in getting tax exemptions for a social club. I’ll answer the second question first because we need to line through it for the purposes of the rest of this post as we found no evidence the Chamber was involved in the Yacht Club’s local property tax assessments. The Yacht club however, was given a tax abatement by Hancock County Tax Collector Jimmie Ladner and that is plenty interesting on its own.
On October 5, 2015 the Bay Waveland Yacht Club, Inc filed a status report with the Mississippi Secretary of State which indicated it changed its corporate charter:
The period of existence is perpetual Second: The purpose for which it is created are: Mission and Purpose: Associate as a
fraternal and benevolent organization for the common purpose, promotion and pleasure of doing good works related to boating, racing, athletics and related activities Donate use of its facilities, boats and personnel for the advancement of high school sailing, sailing instruction to the children of the community, providing boat storage and launching to the Department of Marine Resources and for search and rescue initiatives, sponsoring annual events open to the community in the celebration of national holidays, hosting civic club functions and fishing rodeos Encourage the owning and use of power and sailing boats for pleasure and a safe harbor for boaters in distress Host international, national and regional regattas in order to exhibit the resources of the Mississippi Gulf Coast to international, national and regional visitors Erect and maintain a building and marina facilities to be used for its good works, charitable endeavors and as a club house for its members Provide periodic donations of use of its facilities and property for the benefit of the community.
That is interesting that it donates its facilities for sailing instruction. The summer program cost $450/child so I am not sure what is exactly being donated to the public but boy that new mission statement sure sounds good. Jimmie Ladner indicated to Slabbed that after the club changed its by laws he gave it the property tax exemption under authority section 27-31-1(d) of the Mississippi Code, which does allow for certain nonprofits to gain a property tax exemption. The problem is the Bay Waveland Yacht Club, per its own 990 forms filed with IRS, is a 501(c)(7) social club. Worse, the 990 forms indicated that no changes were made to its governing documents so there is a fundamental contradiction between the story BWYC is telling the local tax collector and the one it is telling the IRS. Continue reading “Why Hancock County Can’t Afford Nice Things….. (Updated)”