MEADVILLE — It now will be at least September before Allegheny College finds out if it has a potential one-time real estate tax bill of almost $350,000 on two of its properties.

Allegheny College took the Crawford County Board of Assessment Appeals to Crawford County Court of Common Pleas early this year claiming the Crawford County Assessment Office erroneously put the Vukovich Center and the college’s remodeled admissions office properties on the tax rolls in 2010.

Allegheny claims the Vukovich Center, which is a classroom and rehearsal building, and the college’s remodeled admissions office property are tax-exempt since they both are part of the college’s nonprofit, educational mission.

Allegheny missed its opportunity to apply for a tax exemption when personnel there apparently misplaced paperwork sent by the Assessment Office alerting the college to the properties’ taxable status and giving the school 40 days to file exemption paperwork. The college appealed to the county’s Board of Assessment Appeals and was denied.

The college has since been granted the tax exemption for the two properties — except for the one year in question.

However, the court hearing on the matter, which had been scheduled for today in county court, now is postponed until Sept. 21.

Attorneys for both Allegheny and the Board of Assessment Appeals requested the continuance because of pending depositions by both sides.

A deposition is when a person answers an attorney’s questions under oath, but it usually occurs at a location other than a courtroom. A deposition permits an opposing lawyer to collect witness testimony to assist in the preparation of a case. Testimony taken during a deposition may be used at a hearing or trial.

According to the continuance request filed in the case, Allegheny College has given the Board of Assessment Appeals notice it wants a deposition from an unnamed Crawford County Assessment Office official.

Meanwhile, the Board of Assessment Appeals has given Allegheny notice it wants to a deposition from an unnamed Allegheny official who handled and reviewed the assessment notice from the Board of Assessment Appeals.

If county court rules Allegheny must pay the one-year tax bill, the college will owe Crawford Central School District, Crawford County and the City of Meadville a total of almost $350,000 in real estate tax payments on the two buildings.

Last month, David McInally, the college’s finance director, said if Allegheny must pay the taxes, the school would forego one annual voluntary payment of $65,000 to the City of Meadville because the city would receive almost $83,000 in tax revenue.

Allegheny has a voluntary letter of intent to donate money to the City of Meadville for 10 years. That annual donation currently is $65,000.

Allegheny estimates the city alone would get $82,896.16 in tax revenue — $68,600.51 on the Vukovich property and $14,296.16 from the admissions property.

However, if the court rules in Allegheny’s favor, McInally said the school would try to make one $65,000 voluntary payment as soon as possible and another voluntary $65,000 payment then would be made “sometime in fiscal 2011-12.”

If Allegheny has to pay the real estate taxes, the almost $83,000 in tax revenue Meadville would gain for one year would more than offset the loss of a voluntary payment of $65,000 for 2010, according to Tim Groves, the city’s finance director.

But if Meadville doesn’t get a $65,000 voluntary payment from Allegheny for 2011, Meadville City Council would have to figure out a way to make up the more than $47,000 net loss, according to Groves.



Keith Gushard can be reached at 724-6370 or by e-mail at kgushard@meadvilletribune.com.



What Allegheny College may owe in real estate taxes to various taxing bodies on the Vukovich Center and its new admission building

What Allegheny College estimates it owes:

Admissions building

$33,225.59 to Crawford Central School District

$12,369.05 to Crawford County (Tribune estimate is $12,881.58)

$14,296.16 to City of Meadville



Vukovich Center

$159,433.87 to Crawford Central School District

$59,353.21 to Crawford County (Tribune estimate is $61,812.60)

$68,600.51 to City of Meadville