mews
UNC may appeal
taxation decision
By KATHA TREANOR
UNC has not yet decided if it will appeal
Orange County Superior Court Judge
Henry A. McKinnon Jr.'s ruling Friday that
the University must pay taxes on about $17.6
million worth of property in Orange County.
Johrv Temple, vice-chancellor for business
and finance at UNC, said the University
administration has two weeks to decide
whether to appeal the decision. He said there
has not been an opportunity to discuss it yet
but a meeting wiU be arranged soon.
Should the University decide to appeal,
the case would go either to the Court of
Appeals or straight to the state Supreme .
Court, he said. The court will determine this,
Temple said.
McKinnon said UNCs off-campus
electric and telephone utilities, the Carolina
Inn and the first floor of the Hill Building on
Franklin Street are taxable since their major
purposes are not educational.
McKinnon's decision came after UNC,
Chapel Hill, Orange County and Carrboro
appealed the state Property Tax
Commission's January ruling that the Hill
Building, the Carolina Inn and the Horace
Williams Airport property were subject to
local property taxes beginning in 1974.
The commission ruled that less than $4
million worth of UNC property was taxable
and that back' taxes could only be collected
to 1974. It ordered UNC to pay $291,545 for
taxes accumulated' since 1974 only a
fraction of the amount sought by the local
governments. ;
The local governments appealed, saying
they felt- more than $30 million worth of
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casually
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securely
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old style
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Nice
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Garner
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(angry)
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DOWN
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Solution on page 18
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8 Sand or odd
9 Judgmental
review
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world's
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baggers 12 Clock sound
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role
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jacket
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cudgel
1979 by Chicago Tribune-N.Y. News Synd. Inc.
All Rights Reserved
61V79
University property was taxable and some of
it should be taxed back to 1969.
UNC appealed the commission's ruling
saying state constitutional provisions
exempted all of its property from taxation,
McKinnon also disagreed with - the
commission's ruling that part cf the Horace
Williams Airport was taxable. He said the
part of the airport used for commercial
purposes was incidental to its public purpose
and, therefore, it was exempt.
McKinnon agreed with the commission's
ruling that only UNC property used for
educational purposes was tax-exempt.
" McKinnon's decision was in agreement, in -large
part, with the findings of the
commission. However he did disagree with
the commission's conclusion that UNCs
utilities were tax-exempt. The utilities served
off-campus customers in Chapel Hill and (
Carrboro, and McKinnon said their
predominant purpose was noreducational, V -
If' McKinnon's ruling stands, all three v
locaF governments could receive
considerable tax revenues from U N C. Some
calculations say it would cost the University ;
almost $250,000 for 1974 alone. , ; - ;
UNC could also be liable for interest and '
penalties and for taxes for. the years since ' ;
-1974 tt has owned the property. Although
UNC sold the utilities to private companies :
in 1976, it still owns the H ill Building and the
Carolina Inn. .--.' ' " ' ' :. .' ; ":;
If UNC is forced to ry the taxes, UNCi-v
students will not have to pay higher tuition -T-,
or fees to help pay for the cost. Temple said..':
The taxes for the utilities Would be paid for ?
out of a reserve held by the state treasury, he
said. Additional revenue generated by the
Carolina Inn and rental of the Hill Building
would be used to pay the taxes on these
properties, he said.
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University's Carolina Inn
... faces possibJctaxation
PTffT-n
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6 The Summer Tar Heel Thursday. June 14. 1979