- 2012 BOARD OF EQUALIZATION 2012 BOARD OF EQUALIZATION OATH OF OFFICE I. Dewev Lasslev,do solemnly swear that as a member of the Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the*unty. ft« 64 / 43 STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 12th day of July 2012. Witness my hand and official seal the day above written. Kay BroWn, Eounty Clerk ilt! 1114.. e"H, f. 1 138.010 REMO f' 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Susan "Sam" Yarnell. do solemnly swear that as a member of the Christian County Board o f Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. K«Ul) 444. 29-,1: d ah,reW (J STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 12th day of July 2012. Witness my hand and official seal the day above written. *. i 1.,4 OUUM""1,4#4, Kay Effown,County Clerk 138.010 RSMO 55.161.44 k.e 21 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Loyd Todd, do solemnly swear that as a member of the Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. STATE OF MISSOURI COUNTY OF CHRISTIAN Subspribed and sworn to before me on this 12th day ofJuly 2012. Witness.my hand and official' seal the day above written. ..d.'' F'h .. Kay y Clerk Bro*n. Count 198.010 RSMO 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Lou Lapaglia, do solemnly swear that as a member of the Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. . 6.640 7 2 4 7-17<-1,-+ STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 12th day ofJuly 2012. Witness my hand and official seal the day above written. .' ..u .. Kay Bro n, County Clerk M #' 138.010 RSMO I. 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Tom Huff, do solemnly swear that as a member ofthe Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. ABSENT STATE OF MISSOURI COUNTY OF CHRISTIAN th Subscribed and sworn to before me on this 12 day of July 2012. Witness my hand and officiaj seal the day above written. €·FT Bro#n. Coun Kay ty Clerk 138.010-RSMO 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Bill Barnett, do solemnly swear that as a member of the Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. 8 2-Q * GNA*.-- STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 1211 day ofJuly 2012. Witness my hand and official seal the day above written. .. ...i.h•&• t F ..• .1,11,0:, Kay BroWitounty Clerk 138.01·RSMO l» 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Brenda Hobbs. do solemnly swear that as a member bfthe Christian County Board of Equalization will fairly and impartially equalize the valuation of all real estate and tangible personal property taxable by the county. 64/2 STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 12th day of July 2012. Witness my hand and official seal the day above written. Kay Brow* County Clerk & 0, 138.010 RSMO 2012 BOARD OF EQUALIZATION OATH OF OFFICE I, Assessor David Stokely, a nonvoting member, do solemnly swear that as a member of the Christian County Board of Equalization will fairly and impartially equalize the valuation of all reaI estate and tangible personal property taxable by the county. p:JAA U LTD )< 4 1 - 1 2- /4 STATE OF MISSOURI COUNTY OF CHRISTIAN Subscribed and sworn to before me on this 12th day of July 2012. Witness my hand and official seal the day above written. Kay Bro©, County Clerk • 138.010 RSMO i Mr rT-ING All ENDE-E/5 Note: We request the following information in case we need to contact gou. Thank goul A ,#1 Ob tz=30& /2-9772 Date:kd jAA#yA Meeting: Moore\ vj. MA70738 (8225 St 1 -3911 email address email/\ address OW)'d 2-0 k-£11 0cnek 14 bbi Of«6£1 53-5 /01/ &70/ licu, Name (fleasep:int) 6'oyn rr·Iff (, *&52** torul fft4-1&« v Q-*-*Alama.(IZIcaseint) i / 1 Con'Flangj tie 60500\ , ijair. Bora CLIWOVTitle (1020]56*Cuhag21 fE Adress business Addresdl I Itg 5usiness Citg (44 Uov t fhone num 6er i J rhone number »+44# email' laddiress emaiit addres-4 \3 fL t Christian County Board of Equalization July 12, 2012 Convene Presiding Commissioner Lou Lapagtia called the meeting of the Christian County Board of Equalization to order at 11:30 a.m. on July 12,2012 at the County Commission Office. Attendance: Lou Lapaglia, Present: Bill Barnett, Present: Tom Huff, Absent: Loyd Todd, Present: Susan "Sam" Yamell, Present: Brenda Hobbs, Present: Dewey Lassley, Present.County Clerk Kay Brown is taking the minutes. Kay Brown sworn in atl the board members except for Tom Huffbecause he was absent. Mr. Timothy F. Peak, President of the Heritage Preparatory School, Inc. Parcel # 17-0.3-07-000-000-3027 The meeting was attended by Assessor's staff: Susan Lopez, Amy York, Barbara Stoner, Treasurer Karen Matthews, Robert Palmer, John Dollarhite, Mike Wasson, County Auditor Sam Yarnell, Brandon Peak, Director of the Heritage Preparatory School, Inc.,and Donna Osborn of the Christian County Headliner News. Parcel # 13-0.9-29-000-000-6.000 and 13-0.9-30 -000-000-13.000 located at 366 Haynes Drive, Sparta, Missouri Heritage Preparatory School, Inc. Parcel #17-0.3-07-000-000-3027, Foreign Non-Profit Corporation President Mr. Timothy F. Peak 2820 State Highway W, Ozark, Missouri The Board of Equalization met with Mr. Timothy Peak for a real estate assessment appeal for non-profit corporation ofThe Heritage Preparatory School, Inc., Parcel #17-0.3-07-000-000-3027, located at 2820 State Highway W, Ozark, Missouri and Parcel # 13-0.9-29-000-000-6.000 and 13-0.9-30 -000-000-13.000 located at 366 Haynes Drive, Sparta, Missouri. Mr. Timothy Peak, President of Heritage Preparatory School Inc., presented to the Board a copy of the articles of incorporation, letters of recommendation, a letter from the IRS, a Good Standing Certificate from the State of Arizona and from the State of Missouri. Last year Mr. Peak and The Heritage Preparatory School moved from the State ofArizona to Missouri. Due to the non-profit status, Mr. Peak has requested that his property taxes be eliminated. On April 30,2012, Assessor David Stokely sent a letter by email to Mr. Peak requesting additional documentation to verifj, his tax exempt status. The Assessor never received a response and without further correspondence the assessment has remained unchanged. There was much discussion about the Franciscan test to determine if a corporation's activities confirm the non-profit status. There was also discussion regarding Form 990 that is required by the IRS. According to Mr. Peak, there are three prongs o f the Franciscan test that is required to obtain a tax exempt status: 1. Must be owned and operated for a non-profit status 2. Activity must be used for educational or religious purposes 3. Dominant use for an indefinite number ofpeople and benefits the community. Mr. Peak said that the corporation is a fully functional publicly funded school that educates children from July 12,2012 1 t kindergarten through the 8th grade. Mr. Peak said they purchased a piece of property that was not designated for a school and have put around $ 100,000 in the building. They are in the process ofgetting the property ready to be used. Assessor David Stokely said that he is looking at the three parcels that are directly owned by the Corporation. Assessor Stokely said that he takes exemption of real estate taxes very seriously. Assessor Stokely stated that to acquire a non-profit tax exempt status the determination is based on the requirements of a 501 C3 of status based on present use or activity not future intentions. Assessor David Stokely made a recommendation to the Board of Equalization to keep the assessment the same and any further questions can be sent to the State Tax Commission. Dewey Lassley asked, "Do you own the property or was it purchased by the corporation?" Mr. Peak said he did not know what level of participation was required before you could qualify. Loyd Todd asked Assessor David Stokely, when was the property purchased. Brenda Hobbs asked were taxes paid in 2011. Assessor David Stokely said he doesn't have proof that the taxes were paid. The residence located at 2020 State Highway W, was appraised for $ 558,100.00. He said there are actually three parcels of land that has been reviewed. Dewey Lassley asked the Assessor, are you to declare the parcel for education? Mr. Lassley asked about IRS Form 990, with no response. Mr. Lassley this would take a lot more time and we are out of our league. Mr. Peak said they are funded by donations. They sold the corporation property in Arizona and the proceeds were invested back in the corporation. He will submit the 990 forms. Dewey Lassley said that he understands how a non-profit corporation works but what concerns him is who pays the taxes on the parcels that he possesses. "Do you pay the taxes onitbut the corporation has purchased the property." He does pay taxes on property that is question which is a fourth parcel not yet Assessor Stokely said if he has jumped through the hoops that are required by the State and the IRS has declared him a nonprofit than my office can determine the assessed value based on use and it must be in use for the purpose of education before they can be taken off the tax rolls. Assessor Stokely said thatjust because they have set up a nonprofit corporation doesn't necessarily show they are a nonprofit in operation. Robert Palmer said that he has attended five or six educational classes that were offered by the school. Assessor David Stokely replied that he doesn't pass judgment he is not trying to inject his personal opinion but based on the information provided it is not clearly indicated that Heritage Preparatory School meets the guidelines of the State Tax Commission Donna Osborn asked are there any paid employees and what is their salary. Mr. Peak replied that there are two paid employees, Brandon Peak has a salary of$ 50,000.00 and Tim Peak receives $ 125,000.00. Mr. Peak said, "The Assessor keeps making the statement of future use and I think I have given you enough information to support the reason for being here." July 12,2012 1 € 0 Presiding Commissioner Lou Lapaglia said we can make a decision today or we can wait on the decision. Loyd Todd, Dewey Lassley, Presiding Commissioner Lou Lapaglia and Western Commissioner Bill Barnett wanted to make a decision today. Brenda Hobbs was uncertain with her decision. Motion/Vote - Real Estate Assessment Decision for Heritage Preparatory School, Inc. Dewey Lassley made a motion to uphold the real estate assessment rendered by Assessor David Stokely. Loyd Todd seconded the motion. The motion passed by vote: Lou Lapaglia (Yes), Bill Barnett (Yes), Tom Huff (Absent), Loyd Todd (Yes), Susan "Sam" Yarnell (Yes), Brenda Hobbs (Abstain), Dewey Lassley (Yes). July 12,2012 3 Kay Brown From: tfpeak@gmail Sent: Tuesday, October 02, 2012 11:30 AM To: Kay Brown Subject: Re: July 12, 2012 Board of Equalization Minutes Kay, It was my attorney who came in to get the information. He was looking for a formal order of some kind. He was under a deadline and was unable to get what the State Tax Commission needed. He indicated that he thought we would need to file a law suit of some kind against the County. Thank you for this information and your efforts to help us. 1 believe he already had this information, however our appeal has already been filed with the State Tax Commission. 14 f i Wga fri, rthank you foryour help!! Pi Jim peak .r ;Be thechange you wish to see in the world". M. Gandhi On Oct 2, 2012, at 10:38 AM, "Kay Brown" wrote Dear Mr. Peak, Norma said you came in while I was out of the office. She said she gave you a copy of the letter. I sent rthe letter, instruction for filling out complaint forms, Complaint for Review of Assessment Form, A pamphlet entitled "Property Tax Appeals Before the State Tax Commission of Missouri, and the minutes ./of the meeting. I mailed the packet to Heritage Preparatory School, Inc. Attn: Mr. Timothy Peak, 2820 iState Highway W. Ozark, Missouri 65721. I hope this helps you. Next year I am sending all my packets as , icertified mall. 1 ' Letme know if there is anything else that you need. , Sincerely, Kay Brown 1 t f ! 1 3 1 Assessor David Stokely From: Assessor David Stokely Sent: Friday, June 29, 2012 2:02 PM To: 'heritageprepmo@gmail.com' Subject: Heritage Prep status Tim, Are the services rendered by use of the property rendered at cost or less? What kind of rate setting process do you have in place? Do you provide any services to people who cannot pay? Is the rate a cost-based rate, a highly subsidized rate, or a cost + profit rate? Please submit three previous years of IRS Form 990, If you would care to submit additional documentation that you possess that would shed light on pricing and salary structures this would be of assistance in our decision. Are your services open and available to an indefinite group of people (as limited by capacity)? Da:vio[StokeEy, 3\ssessor 100 W Church St, Rm 301 Ozark, MO 65721 417-582-4310 417-581-3029 Fax 1 PROPERTY ASSESSMENT APPEAL FORM CHRISTIAN COUNTY BOARD OF EQUALIZATION TAXPAYER INFORMATION Taxpayer's Name: Peri-48 € -Frepara.lorg gehool Inc, Taxpayer's Mailing address: 282-0 STAFF NUW LO OZARk tOo (Street or Box Number, City, State and Zip Code) (flfi 712 l PROPERTY INFORMATION ,13 -0,9-229 -<306-000- 6,000 Parcel Numberof theproperty: 17-0 25·-07-Coo- c -0.9-23-000 -000 -8.Ck:98 000 - 30\27 3 6 6 thtnes -DR. Address of Property (if different than Mailing Address): SY,17-+4 £ 1/yto 6 6753 (Street or Box) (City, State, and Zip Code) What is the Cugent Classification of the Pronerty? t/Agricultural Commercial 7Residential Mixed Use What is the Market Value set by the Assessor? \9 A What is the Taxpayer's Proposed Market Value? 1018 REASON FOR APPEAL Please check the reason you believe the assessment is incorrect. Check all that apply. Valuation (The value placed on the property by the assessor is incorrect) -Discrimination (The property is assessed at a ratio greater than the average for the county) _Misgraded Agricultural Land (Theproperty is not in the correct agricultural productivity grade) _Misclassification-The proper classification of this property should be: Residential Commercial Agricultural Charitable Purposes Exemption- The property should be exempt because jt is being used for: Religious Purposes / Educational Purposes / Charitable Purposes _Other Basis for Appeal (explain): You may attach any documentation you desire the Board to consider Taxpayer's Signature: A, 7 1 1,2-j NOM. . Jit -4 Date: 2012 CHRISTIAN COUNTY PROPERTY REPORT 10/31/2012 DAVID STOKELY - ASSESSOR PARCEL NUMBER OWNER: LAND APPRAISAL 17-0.3-07-000-000-003.027 HERITAGE PREPARATORY SCHOOLS INC REI: 20,000 C/O: AGR: 1,100 COM: 10.000 SCH RD CTYFR JC TYPE ADDRESS: VAC: 0 R6 Cl NONFIR AMBRL 2820 STATE HIGHWAY W IMPR APPRAISAL RES: 456,900 Rftl OZARK, MO 65721-0000 PARENT PARCEL: AGR: 43,800 PHYSICAL ADDRESS: COM: 26,300 2820 ST HWY W OZARK TOTAL APPRAISAL RES: 476,900 AGR: 44,900 SUBDIVISION ACRES COM: 36,300 6000 OZARK (OUT) 6.42 VAC: 0 LOT: LOT SIZE ASSESSMENT RES: 90,610 BLOCK: AGR: 5,390 COM: 11,620 PROPERTY DESCRIPTION: SEC: TWP: RNG: VAC: 0 BEG NWCOR, S500 TO POB, S250 E150 N250 E1150 TO POB. 7 26 20 TOTAL: 107,620 DEED BK/PG: DATE ACQUIRED: 2011-006763 2011-07-01 STRUCTURE INFORMATION HUNNICUTT APPRAISAL INFORMATION Structure: 3 Type: RES Yr Built: 2005 Basearea: 2,400 Adj Area: 4,507 Class: C+ Structure: 4 Type: GAR Yr Built: 2004 Basearea: 4,200 Adj Area: 4,200 Class: L4 Structure: 5 Type: STSP Yr Built: 2007 Basearea: 576 Adj Area: 576 Class: C- Structure: 6 Type: BARN Yr Built: 2007 Basearea: 3,488 Adj Area: 3,622 Class: B-44 Structure: 7 Type: SHED Yr Built: 2007 Basearea: 288 Adj Area: 288 Class: B-41 Structure: 8 Type: OFF Yr Built: 2004 Basearea: 1,128 Adj Area: 1,805 Class: 0 Structure: 10 Type: OFF Yr Built: 2004 Basearea: 704 Adj Area: 1,190 Class: D APPRAISED AND ASSESSED VALUES ARE SUBJECT TO CHANGE UNTIL THE BOOKS ARE CLOSED OUT EACH YEAR. THE ASSESSOR'S OFFICE IS FOR TAX PURPOSES ONLY AND NOT LEGAL. Ill 1 11 1 r-,- Heritage Preparatory Schools, Inc. - 2820 State Highway W * Ozark, Missouri 65721 1 d Phone: 417-582-1881 * Cell: 417-612-3870 An 501c3 Non-Pront Corporation dedicated to the education of America's youth and families. - Members of the Board of Equalization July 12, 2012 Thank you for hearing our plea to grant Heritage Preparatory School, Inc. a permanent non-profit exemption from Christian County Property Taxes. This will allow Heritage Preparatory School, Inc. to conserve its precious funds to use for its intended mission and 11 non-profit purposes. Which is, in short, to provide educational opportunities to any citizen of our County, the State of Missouri. and in fact the United States ofAmerica. -- We have not previously experienced a denial of our non-profit exempt st*us; therefore this is a difficult situation for us to deal with, without attorneys. 11 1 1 1 We have given you what we believ-e are a series of facts and have provided you with multiple witnesses for evidence that we currently are, and have been since the purchase of our properties here in Christian County, making use of and providing activities on the said properties, that are deserving of the Chafitable Exempt Sptus. We have shown - you that according to the Missouri Constitution of 1945, Article X, 46 (amended 1982); u 137.100 and 137.101 that we meet all of the criteria in the Missouri Constitution and the Franciscan Test as recommended. l It is our intent to continue to provide the non-profit resources to the citizens of Christian County and the -- surrounding area with many benefits, including educational seminars, a private leadership education program to provide future leaders for our communities, and many other seminars and workshops to assist our citizens with_ making our communities a better and more prosperous place to live and raise families. 1 Again, Thank you for hearing our pleal - We hope each ofyou have a GREAT DAY!! 1, Timothy F. Pedk, President - - dia(a R. 9--- - Cynthia R. Peak, Vice President · - 41=-1,0.. D Ak -- Brandon J. Peak, Secretary/ Treasurer -- - 1 1 KAY BROWN tleMM:&8091.€!!!!!ttli CHRISTIAN COUNTY 100 W. CHURCH ROOM 206 OZARK, MO 65721 Phone: 581-6360 Fax: 581-8331 July 17,2012 Heritage Preparatory School, Inc. Attn: Mr. Timothy Peak 2820 State Highway W Ozark, Missouri 65721 RE: BOE Hearing on Parcel # (17-0.3-07-000-000-3027) (13-.09-29-000-000-6.000 and 19-0.9-30-000-000- 13.0000) Located at: 2820 State Highway W, Ozark, Missouri 65721 and 366 Haynes Drive, Sparta, Mo. 65753 Owner: Mr. Timothy Peak Dear Mr. Peak, The Christian County Board of Equalization discussed your property assessment appeal and voted unanimously to keep the assessed value as provided by the County Assessor. However, you may appeal your property assessment to the State Tax Commission for review. The Board of Equalization minutes of your hearing are enclosed and the following forms: • Instructions.- Filling Out Complaint Forms • Complaint for Review of Assessment Form • A pamphlet entitled "Property Tax Appeals Before the State Tax Commission of Missouri. Thank you for bringing your appeat before the Christian County Board of Equalization. Sincerely, 07- 4¢6- Kaf Brown, Secretary to the Christian County Board of Equalization INTERNAL REVENUE SERVICE DEPARTMENT OF THE TREASURY DISTRICT DIRECTOR P. O. BOX 2508 CINCINNATI, OH 45201 Employer Identification Number: Date: 86-0873973 FEB 1 8 1998 DIN: 17053302030007 HERITAGE PREPARATORY SCHOOL INC Contact Person: C/O EAGLES AERIE SCHOOL LINDA LUNA 17019 S GREENFIELD RD Contact Telephone Number: HIGLEY, AZ 85236 (213) 725-7002 Accounting Period Ending: October 31 Form 990 Required: yes Addendum Applies: yes Dear Applicant: 1 Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from federal income tax under section 501(a) of the Internal Revenue Code as an organization described in section 501 (c) (3) . We have further determined that you are not a private foundation within the meaning of section 509(a) of the Code, because you are an organization described in sections 509 (a) (1) and 170 (b) (1) (A) (ii) . If your sources of support, or your purposes, character, or method of operation change, please let us know so we can consider the effect of the change on your exempt status and foundation status. In the case of an amend- ment to your organizational document or bylaws, please send us a copy of the amended document or bylaws. Also, you should inform us of all changes in your name or address. As of January 1, 1984, you are liable for taxes under the Federal Insurance Contributions Act (social security taxes) on remuneration of $100 or more you pay to each of your employees during a calendar year. You are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA). Since you are not a private foundation, you are not subject to the excise taxes under Chapter 42 of the Code. However, if you are involved in an excess benefit transaction, that transaction might be subject to the excise taxes of section 4958. Additionally, you are not automatically exempt from other federal excise taxes. If you have any questions about excise, employment, or other federal taxes, please contact your key district office. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for federal estate and gift tax purposes if they meet the applicable provisions of Code sections 2055, 2106, and 2522. Contribution deductions are allowable to donors only to the extent that their contributions are gifts, with no consideration received. Ticket pur- chases and similar payments in conjunction with fundraising events may not Letter 947 (DO/CG) -2- W; 4 HERITAGE PREPARATORY SCHOOL INC necessarily qualify as deductible contributions, depending on the circum- stances. See Revenue Ruling 67-246, published in Cumulative Bulletin 1967-2, on page 104, which sets forth guidelines regarding the deductibility, as chari- table contributions, of payments made by taxpayers for admission to or other participation in fundraising activities for charity. In the heading of this letter we have indicated whether you must file Form 990, Return of Organization Exempt From Income Tax. If Yes is indicated, you are required to file Form 990 only if your gross receipts each year are normally more than $25,000. However, if you receive a Form 990 package in the mail, please file the return even if you do not exceed the gross receipts test. If you are not required to file, simply attach the label provided, check the box in the heading to indicate that your annual gross receipts are normally $25,000 or less, and sign the return. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. A penalty of $20 a day is charged when a return is filed late, unless there is reasonable cause for the delay. However, the maximum penalty charged cannot exceed $10,000 or 5 percent of your gross receipts for the year, whichever is less. For organizations with gross receipts exceeding $1,000,000 in any year, the penalty is $100 per day per return, unless there is reasonable cause for the delay. The maximum penalty for an organization with gross receipts exceeding $1,000,000 shall not exceed $50,000. This penalty may also be charged if a return is not complete, so be sure your return is complete before you file it. You are required to make your annual return available for public inspection for three years after the return is due. You are also required to make available a copy of your exemption application, any supporting documents, and this exemption letter. Failure to make these documents available for public inspection may subject you to a penalty of $20 per day for each day there is a failure to comply (up to a maximum of $10,000 in the case of an annual return). You are not required to file federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990-T, Exempt Organization Business Income Tax Return. In this letter we are not determining whether any of your present or proposed activities are unre- lated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service. This determination is based on evidence that your funds are dedicated to the purposes listed in section 501 (c) (3) of the Code. To assure your continued exemption, you should keep records to show that funds are expended Letter 947 (DO/CG) 4 . -3- HERITAGE PREPARATORY SCHOOL INC only for those purposes. If you distribute funds to other organizations, your records should show whether they are exempt under section 501 (c) (3) . In cases where the recipient organization is not exempt under section 501(c) (3), there should be evidence that the funds will remain dedicated to the required purposes and that they will be used for those purposes by the recipient. If we have indicated in the heading of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours, 014¢0, ANL District Dire*9: Letter 947 (DO/CG) 4 1 611 1 - OF ARIZONA Office ofthe CORPORATION COMMISSION CERTIFICATE OF GOOD STANDING To al/to whom these presents shan come, greefing: 1, Ernest G. Johnson, Executive Director ofthe Arizona Corporation Commission, do hereby certify fhal ***HERITAGE PREPARATORY SCHOOL INC.*** a domestic nonprolit corporation organized under the laws of the State of Arizona, did Incorporate on June 6.1997. i furthercert/fy thataccording to the records offho Arizona Corporaflon Commission, as of the date set forth hereunder, the sold corporation is not administratively dissolved for failure to comply with the provistons ofthe Ar,zona Nonpront Corporation Act; and thatits most recent Annual Report, subject to the provisions of A.R.S. secuons 10-3122, 10-3123, 10-3125, & 10-11622, has been delivered to the Arizona Corporation Commission for filing; and that the said corporation has not filed ArUcles of Dissolution as of the date of this certincate. This cet:lflcate relates only lo the legal existence of the above named entity as of the date Issued This ce,Uncate is not to be construed asan endorsement recommendat/on, or notice of approval of the entity's condition or business act/v/Ues and prac#ces. IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the officia/ seal of the Arizona Corporatfon Commission. Done at Phoenix, the Capital, this 311st Day of January, 2012, A. D. €/6,- Executive Director /·A--»-Ilp-71 \0& DITAT DIUS By: 716380 40%7 1= 1- .92,3:ti .>' 91 %'trf,al':.. t'g 2,0. ,* .. ,»·ewk.'A' .,t'•7:#*b,71, f# t : 13 41 ,;;i adikbh, :4 y¥„l,i {*,40#..i, ,,i'. 40 3- 0 * "pr rN *,;1!h ill A IN. al,1,961, ;['.i"a fil Ibi. 71, .1 {#,14,1 *il.,i 1-493,Al ir·+Nfu;i 1 4. 141;11 .Mv 'BriD 4.14 k:1 11] A# eN ir, 91 4. 11,1411 *11 i.4 iA,fh (11**Ghrili * brk: i' -, 1,6: di>*> la E <·21·14 4E TATE OF MISS ocr 1-9&11 .?t 9 -RE,4 .B 42 23.:35*17 ,#BA...... %..'Fllk &E ... 0%. $44>« 1 84: a : tap pc*21 Muj : 1!2dgd-u*l!!!bi& 6 11 1 13,91 +9»9 41: . 314.,2+ 1% Dir>#34 . M 144**6 J & 1 41%\ AR*17 51 - *-.-I. Robin Carnahan =.39 .a>.· Ri€.04*\ t# DA·-9,4. A Secretary of State £=21 64 , 4.9 CERTIFICATE OF AUTHORITY FOREIGN NONPROFIT 11 WHEREAS, *242 t€ HERITAGE PREPARATORY SCHOOL. INC. 3 3/>Af gE £01203415 *«13:A i APPh. ·721 14 - -2=15 Afs#. G using in Missouri the name A 34?39 HERITAGE PREPARATORY SCHOOL. INC. + 5-28)212; 2 Ney »t. z has complied with the Missouri Nonprofit Corporntion Law which governs Foreign Corporations; by Sti *3 filing in tile office of the Secretary of State of Missouri authenticated evidence of its incorporation and #©*7 deiu good standing under the Laws of the State of Arizona. 39% 'ir.-X> <>· 4* 8%32.6..1 '22#¥@ „·5241 NOW, THEREFORE, I, ROBIN CARNAHAN, Secretary of State of the State ofMissouri, do hereby 6.533163 *13:# certify that said corporation is from this date duly authorized to transact business in this State, and is *Eq;3?.d 44.; entitled to all rights and privileges granted to Foreign Nonprofit Corporations under the Nonprofit 93% 4*• jf Corporation Law. ,£9..47/.'.flib M IN TESTIMONY WHEREOF. I hereunto <46: v -7./1#. 4·.:t , set my hand and cause to be affixed the ,%23* GREAT SEAL ofthe State of Missouri. -.7 ia *ty-EL Done at the City oflefferson, this Maf * * \Ah M /,*:46 41.0,6 'WHA 6*964 A°# Sth day of February, 2012. flbfA \En g I -9. 4 <9*F 24 '€,2/ 14- ..11" .451 6 9.52 j .1 211( -mfw .2.12/1U 03* 2 ¥42 -bl¥ > / 0 \1 r 14,\ 1>411 // 5 -A- 0 , .2- 61! *id' •05 / A Lub '14 - -2 14( 23*ASE TIVIVEVIVELIfj Secretary of State . ..r /?gk 23 3.77:1.%¢ y >*143 8 «04 4%74#FAE.;1 11, I'1 It:i* uq Li,1M - 4.$>1< ,.(th 'r* it' id , d £ 4 91 X 4 334 1. r ' I '/1 ••- ./ 4 X ' '*' A Mo / %1 . 4, 4 *54{44%#*49#44**¥94* »L·,/™82· k.7 00 /·9 , 1 ' \ f SOS •30 (01·2005) ). I David Stokely Christian County Assessor 100 W Church St, Room 301 0 Ozark MO 65721 417)582-4310 417) 581-3029 Fax Assessor@christiancountymo.gov 7 4/30/201 Mr. Timothy Peak, President Heritage Preparatory School, Inc. , 2820 State Hwy W Ozark, MO 65721 Mr. Peak, My office has researched the information concerning four parcels of real estate now owned or soon to be owned by Heritage PreparatorY School, Inc. and I have clarified with the State Tax Commission the position I shared with you concerning the status of the four parcels of real estate in Christian County MO as to being tax exempt for the current tax year, 2012. Our determination is that Heritage Preparatory Schools, Inc. may quAlify at some point in the future but did not own the property on tax day, January 1, 2011 and that in fact no current usage or activities al-9 taigng place on these properties by_which-wean deter!2*Fitable exempt status. All property in Missouri is classified by usage for assessment - purposes. An exempt organization An own land but if it is not used in that scope it may not qualify for exemption from taxation. There will be an opportunity to appeal to the Board of Equalization if you want to contact our office in June. If your appeal is not to your satisfaction you have the right to carry the appeal to the State Tax Commission. All the current and previous valuation and tax information is detailed below on these four parcels of real estate. This same information and more detail can be found on our website www.christiancountvassessor.com. I cannot provide estimated tax information at this time for the 2012 tax year as the levies are not set at this time but I do not anticipate a major change at this time and all estimates would have to come from the Collector of Revenue. Please contact me if you have further questions or need for assistance. h,Aj j S 71/9 David Stofiely, Assessor ARTICLES OF INCORPORATION of HERITAGE PREPARATORY SCHOOL, INC. EXHIBIT B Article II: BOARD OF DIRECTORS: Delete: Lorna W. Hale 1296 E. Linda Lane, Gilbert, Arizona 85234 Replace with: Brandon J. Peak, 24577 N. Lost Dutchman Way, Florence, Arizona 85232 Article IV: Delete: Paragraphs 1,2, and 3. Replace with: The character of affairs with Heritage Preparatory School, Inc. intends to actually conduct shall be to operate and maintain the operation of a fully functioning private school *iwillbe-inyolved in variguieflucalignalactivities_forahe_benefitoflocaL community members and/orthegeneriniffizenry of the United States-of-America.- Submitted: November 22,2009 Approved by the Board of Directors: May 21, 2009 6- Royal & Becky Osterhoudt 2006 South 16th St. Ozark, Missouri 65721 July 11, 2012 To whom it may concern: Over the course of the last 12 months, we have participated in several different enriching classes and activities that Heritage Preparatory School has offered. We are most grateful for the beneficial activities that myself, friends and family have participated in. We have taken part in several different classes and activities, both small and large to further our knowledge, learning and education of enriching topics that provide growth. We look forward to future enriching activities and classes with this non-profit organization. We have no doubt that these planed classes will be enriching, beneficial, and educating to our co-workers, friends, family and community in supporting our goals of education. The classes and activities we have participated in have helped myself and each of my family members to becoming much better productive citizens in our community. I believe that in our community we need more opportunities like what Heritage Preparatory School has to offer that provides learning for each participating individual to become a productive citizens in our community. This, 1 firmly believe, allows each individual to grow and become more educated and be able to give more to our society and help our community and city to grow. Sincerely, Rebecca Osterhoudt Ozark, Missouri 4. 9 :44#Irk:'i Pt-*ke.2 · 2%41€.321%¢22+42644.RE40,6 77<'161:41'22#14 "·34 4 3: F.. . . , C I F /. 1 * f r ' . 3. N·- 4 4 1 4- f A 1.,i-.16-1 33%398-41 ;*LiTA./.r#.:0*'fe;,eil: 9.52 I , " + 4..... 1 .th . A V.9 i'¢14 ..., 1•<,-,<* , €94 ./:a:. 0, i * 1 . 3. - a ' : ** 1 *. 0,1 #24#3:< ,. U :- c 9 -1 fit 4 5 949 0. 44*2/4232:47 4 4 4.,1 4 4 - : 3. /4 0 . 4, 1 4 -.....4- ·£,4.9 ,# 1.·yea .5 6 4 1 - '6 .31 :v 4. - .'*4' 3''I·' f .p. '2' %,-' ic ·/2 %4 * 1 / I - ' f * : . * 4 2 I f« 4 -L<244,24·.*,3 . t'i'··lj,F;,·21'55. 93$-Irbi,%, p c +351;3 1<"·'ty' 2 3 0 .6> 2-·*,ftt.4#2 4 F -# 45;% •" • g·4 . :* 2 A /4• 49 triA.. Mary A Gunefare::r.. *... .- re: . ·' 'i·•i;fk; y,1.' 0., i:0*30; I' '*3334, '4 >t; . 6. ' 5- I ' 2-16:.::.'tt@Sp#rta MIssouri .6,6,f g ..: i .<: x©·Arr>A.:6.54,.<*#:.f' 3%3- .9-t * ''"p ·.4·..:17 .<6-1*J:.irT :{OTf-@05*43 61:19*:91. ...2.% t Afii„fr<4,& 7 **%*}403.Ii'64*ilt¢ff .1,3 [*. r.,· 23 1 2 9.f 4 1«' .e .. I ic:/sh 3.24>.Cp 'ff> f.·ieo < 4 j- >·f·>..2 1 .9.'..,5. 7 k.1, " I '.: 6 i.. .09 AF.,# :34 *u' t·f,>1, 4- £,p@f;r:; , 3 I .1272'7,49(: MB.0 .28 . rO'%»Fs> Prro,WI{om: it May·Concdm; ·· > ,>;:'1?,4 .·''·" I' W * Aff ttk:k ; :6 - 5412 . Pft>if< - .1'rp.:31..56%, h.'2 2 f.:.9 :f,- '5.jpk- .3 -1192912*e v.t ,- ,) --ti,1.- - 4- a-,4 -0 --1-,t-i »...:, 4,3.-1.9.97 1 have been att@nding jnforniational meetings and movies at the Heritage · 4€f·-'72(7 4:€ 142 49 74..... Preparatdly Scho61 for almost one year. 3-hey c&11 to inform us what the J:·42 rerte ,....: 21?-·Af i·*;9{* subject will be and upon my,decision to attdnd, no charge was ever · AE.i*·13,4*64- 44 .A, 6.% 2 A. · - 2-€ · ·t 74 t.cy : encountered.,Various,tback tdbasic" subjects,are discussed and - 1..: 1. 72.L.&9<19'YV 4 : :>3gti .44-3,{t.40 -4: sometimes illustrated With a film to help young people understand how to:·.a:rY",4 · ' :reAN* t-·• . .. 311.31<2 survive in case of an emergency. Since l am 78 & have lived basic.living I; 1> - r rity?J 42.4,1- a . 23 ; * 3*6% regardless whether itbe national or local disasters,· ;Di.f;#·St, * ::.3.-. 5 - 47 0 f - '.4 - 47 7 4 #:Ar .Li)/4 4 0 u P 4. ..4'42121.25€ -.··5·h '·,0 lut & ze¥/ » 5 ·· €' 3 *94 4,19.6,4.4 " 9 4.·.·,-(t' 4;.t ?:4 4.91.3>*'2'.1.,Fi..:1 5.MdriA. Cunefare »3€3*46/. i.€4 5 <36.,3, ·g=?1.i 3 / 4 5·:/ .1 '11 4 : 4 - 61»14 t: tt>..Fiq 2,12 *3 2. . t-1 .•: .¢ P,16 y ·€ I 4% -: # 6411.X -gfnt, 2, i. 0 4. :pe 91: 9 50 £45,78.,B '61.3129:(:7?*tr;...it# R'>»f#IL-'tI'ft,436 2 .3.. '.:k , 1 .2, ..5 4 - 1 4. 14*640}flu.-» 9 6 5 :033-,> .. 41 jp>-rift .S· is:,36'.242.6&6<64 .;433€;4 4 54. g-, . ..4 .1. f 3.' :t. Y. ·P. -'te.6,2' . 2.121 2 4 .5(* I. I I - •,.) ... :8 : I Lotty 0,11 39;Zzi:-440.2,2'.2,4; ;,-4 .. ff<,I-, ia& 26 9:7'.Azi 40:,#19.-4 ifixatttat A.' 9935,'R ..<4& I i•0 4 / fr / 4' 13 -·,¢4'i ./-**,7·' <, : · t13*{)2·44te -*»: , ..--- :0'1t-,e .. , Wk ¥21?4.. .14.-- 249 4 4 T. . € 3 ·42.3 1.2 13'e 4(93 3 23 $-I :i %002, ..'-, .,a, 1 4,9 „I- 9.7. ' :f .,1. 2 .1.9 <12: r 11:i' ·14,71 TEW*5: . 31\r··to··: »0 5 9 - .wifiter, 1>·.. :x.k I ' · $ riliAR>it *24 1;-.,tf<408 ·i·.4:9e.&-:% 7.b#Z e »29,2 i t., ..... ·4'<*rtioh- 4 -fb·441 % 4 i .. . -LA#- r *4 4 7. 2 P „4„. 1 9£ ; 447.,..0% .A. 4„ %5*32·1·.· 4,:13>ji...Pft-:493332 .M: -- : ,4: : .. 94. ... . 1-L t..Jil*.XZ *:'.23«44.4.1, i..-93;4.4,+'Dj.*3411.-41..itiliff 407%' . ja 09¢ 2 3 4* 46 yue.*'1., - .:c . t•'4 - -:£fl:, 1 ,, 4411·: i:f>A/>6(.: 3193).litift·t©K}%i».9 th¢ C'011£b-p «44; r ·12-,41 1 r#U:.*14 7:,2-:kirt:755* 9.9.-« 142 2. St: he . .7., *·Ad/-'t'*NO···3 :r€ f>, 93.-4,«'4?91294-4 'A 21 .: m., e gr .*»I»I,;..:ti31 il,W,12: •:35 1,4(::4:.:.:5 4:4•-+56tl, 42142.11-1,4.:39-4 ->' 9,21" : 4't.KJ/Vt,>,e'' ,.¥ ·.6 vt f ..2 .„ S tl:2 23+ * ' 4 NY'·.410¢ rv':'" 7. 1 ·.i,,4 5, ..35 - f i -' 2>: .."t :.tc;949*4.." ':,6.'Pi':'4 i<€>3(..4.:j.i·ti:jtttf 4 4 1 1.4. ...4, - fulr'-2*,97.<549'Zi... 1 Ip I - -- - '49 1 1 1 1, janet Johnson, 1 11 £ 11 1 392 Dusty Rd. - -- Sparta, MO 65753 1 Hello Mr._Peak, - 111 1 1 1 have attended various weekly educ®onal meetings at Heritage - -_ 1 li 1 Preparatory School since early spring of this year. Th, topics vary from canoing, essential herbal oils, or even updates concqming lowlnd '! 1 /01 4 ,1. 1 1 _- charge, even though they are gracious enough to serve refleshments each national laws. . t , 1 - The_weekly teachings and or movies have always been absqlutely free of 11 i 1111 It n30*ng. I am semi-retired and manage a small farm in Sparta. This was how I met Cynthia and Tim and realized instantly we_shared many 1,1 1 common interests. Many women's gkoups attend, hungry to learn the old 1 _ ways of managing a family on a limited_budget (canning, dehydrating - 1 1,1111 III 11 1, i foods) etc. More information like this is needed in our local community. ,1 1 1 1, r + 1, 4 7 i 1 We all appreciate them inviting us to their school to teachus. If you would like more information you can contag m-e at 417 689-0713 I reside at 392 Dusty Rd. Sparta, Mo 65753 1 Sincerely, Janet I. Johnson I ' 1 1 1 1 41 4 It .1 == 1 1 - 4 r 111 11 -- i- - - d; 1 1 4 1 i'jr 10,4 6 1 T -- 1 11¢. I 11 -- •. l,Mall thanks for the opportunity John and Judy Dollarhite Wed, Jul 11,2012 at 3:53 . PM To: Tim Peak Mr. & Mrs. Peak: My husband and I wanted to thank you for extending the invitation to come and view the educational movies and discussions of issues we Americans need to become educated about our history in order to not repeat the mistakes of the past. If like minded people do not share information, ideas, remedies, and their faith, where are we as a country? We are so pleased to have made friends with your family and hope to continue our relationship as we all study and work together toward a better community and country. Your friends, The Dollarhites f•r / July 9, 2012 Heritage Preparatory Schools, Inc. 2820 State Highway W Ozark, MO 65721 Timothy Peak President Dear Timothy, i began attending meetings in April 2012 at Heritage Preparatory Schools, Inc. lam so grateful for your meetings and pray that you will be continuing these very important educational programs for our community. I believe this benefits our community by helping educate our children and adults on the issues of the government local and nation wide and the various educational issues which pertains to our well being in many different aspects of our lives. I am so grateful for my own personal benefit, helping me understand the issues better and know that this is done in the sole intent to educate the community members and fellow citizens. Sincerely, Ruby Jones 706 South 6h Ave. Ozark, Missouri 65721 1 GMai DYL,a 141 Friday Night Seminary Movie Night at Brother Peak's Tim Peak Mon, Apr 16, 2012 at 9:45 AM Bcc: Aleese Thomas , Averi Davis , Brenna Blau , Calvin Power , Christina Greenwood , Dannah Attwooll , Joseph & Promise Bass , LaRaya Kelso , Savannah Ferguson , Seth Barton , Tatum Mangum , Tyler Mobley , johncarr.x@gmail.com, N Phillips Hi all, We are having a Movie night at Brother Peak's School Theater Room. It is called Heritage Preparatory School. It will be at 7:00 PM. It seats 60 people so there is plenty of room. Bring a friend. We will provide the popcorn. Everyone should bring a desert of some kind, if you can. The address is 2820 State Highway W, Ozark, Christian County Board of Equalization July 12, 2012 Convene Presiding Commissioner Lou LapagIia called the meeting of the Christian County Board ofEqualization to order at 11:30 a.m. on July 12, 2012 at the County Commission Office. Attendance: Lou Lapaglia, Present: Bill Barnett, Present: Tom Huff, Absent: Loyd Todd, Present: Susan "Sam" Yarnell, Present: Brenda Hobbs, Present: Dewey Lassley, Present.County Clerk Kay Brown is taking the minutes. Kay Brown swore in all the board members except for Tom Huffbecause he was absent. Mr. Timothy F. Peak, President of the Heritage Preparatory School, Inc. Parcel # 17-0.3-07-000-000<3027 The meeting was attended by Assessor's staff: Susan Lopez, Amy York, Barbara Stoner, Treasurer Karen Matthews, Robert Palmer, John Dollarhite, Mike Wasson, County Auditor Sam Yarnell, Brandon Peak, Director ofthe Heritage Preparatory School, Inc.,and Donna Osborn of the Christian County Headliner News. Parcel # 13-0.9-29-000-000-6.000 and 13-0.9-30 -000-000-13.000 located at 366 Haynes Drive, Sparta, Missouri Heritage Preparatory School, Inc. Parcel #17-0.3-07-000-000-3027, Foreign Non-Profit Corporation President Mr. Timothy F. Peak 2820 State Highway W, Ozark, Missouri The Board of Equalization met with Mr. Timothy Peak for a real estate assessment appeal for non-profit corporation ofThe Heritage Preparatory School, Inc., Parcel #17-0.3-07-000-000-3027, located at 2820 State Highway W, Ozark, Missouri and Parcel # 13-0.9-29-000-000-6.000 and 13-0.9-30 -000-000-13.000 located at 366 Haynes Drive, Sparta, Missouri. Mr. Timothy Peak, President ofHeritage Preparatory School Inc., presented to the Board a copy of the articles of incorporation, letters of recommendation, a letter from the IRS, a Good Standing Certificate from the State of Arizona and from the State ofMissouri. Last year Mr. Peak and The Heritage Preparatory School moved from the State ofArizona to Missouri. Due to the non-profit status, Mr. Peak has requested that his property taxes be eliminated. On April 30, 2012, Assessor David Stokely sent a letter by email to Mr. Peak requesting additional documentation to verity his tax exempt status. The Assessor never received a response and without further correspondence the assessment has remained unchanged. There was much discussion about the Franciscan test to determine if a corporation's activities confirm the non-profit status. There was also discussion regarding Form 990 that is required by the IRS. According to Mr. Peak, there are three prongs of the Franciscan test that is required to obtain a tax exempt status: 1. Must be owned and operated for a non-profit status 2. Activity must be used for educational or religious purposes 3. Dominant use for an indefinite number of people and benefits the community. Mr. Peak said that the corporation is a fully functional publicly funded school that educates children from July 12,2012 1 kindergarten through the 8th grade. Mr. Peak said they purchased a piece of property that was not designated for a school and have put around $ 100,000 in the building. They are in the process of getting the property ready to be used. Assessor David Stokely said that he is looking at the three parcels that are directly owned by the Corporation. Assessor Stokely said that he takes exemption ofreal estate taxes very seriously. Assessor Stokely stated that to acquire a non-profit tax exempt status the determination is based on the requirements of a 501C3 of status based on present use or activity not future intentions. Assessor David Stokely made a recommendation to the Board of Equalization to keep the assessment the same and any further questions can be sent to the State Tax Commission. Dewey Lassley asked, "Do you own the property or was it purchased by the corporation?" Mr. Peak said he did not know what level ofparticipation was required before you could qualify. Loyd Todd asked Assessor David Stokely, when was the property purchased. Brenda Hobbs asked were taxes paid in 2011. Assessor David Stokely said he doesn't have proofthat the taxes were paid. The residence located at 2020 State Highway W, was appraised for $ 558,100.00. He said there are actually three parcels of land that has been reviewed. Dewey Lassley asked the Assessor, are you to declare the parcel for education? Mr. Lassley asked about IRS Form 990, with no response. Mr. Lassley this would take a lot more time and we are out of our league. Mr. Peak said they are funded by donations. They sold the corporation properly in Arizona and the proceeds were invested back in the corporation. He will submit the 990 forms. Dewey Lassley said that he understands how a non-profit corporation works but what concerns him is who pays the taxes on the parcels that he possesses, "Do you pay the taxes on it but the corporation has purchased the property." He does pay taxes on property that is question which is a fourth parcel not yet Assessor Stokely said if he has jumped through the hoops that are required by the State and the IRS has declared him a nonprofit than my office can determine the assessed value based on use and it must be in use for the purpose of education before they can be taken offthe tax rolls. Assessor Stokely said thatjust because they have set up a nonprofit corporation doesn't necessarily show they are a nonprofit in operation. Robert Palmer said that he has attended five or six educational classes thal were offered by the school. Assessor David Stokely replied that he doesn't pass judgment he is not trying to inject his personal opinion but based on the information provided it is not clearly indicated that Heritage Preparatory School meets the guidelines ofthe State Tax Commission Donna Osborn asked are there any paid employees and what is their salary. Mr. Peak replied that there are two paid employees, Brandon Peak has a salary of$ 50,000.00 and Tim Peak receives $ 125,000.00. Mr. Peak said, "The Assessor keeps making the statement of future use and I think I have given you enough information to support the reason for being here." July 12,2012 t Presiding Commissioner Lou Lapaglia said we can make a decision today or we can wait on the decision. Loyd Todd, Dewey Lassiey, Presiding Commissioner Lou Lapaglia and Western Commissioner Bill Barnett wanted to make a decision today. Brenda Hobbs was uncertain with her decision. Motion/Vote - Real Estate Assessment Decision for Heritage Preparatory School, Inc. Dewey Lassley made a motion to uphold the real estate assessment rendered by Assessor David Stokely. Loyd Todd seconded the motion. The motion passed by vote: Lou Lapaglia (Yes), Bill Barnett (Yes), Tom Huff (Absent), Loyd Todd (Yes), Susan "Sam" Yamell (Yes), Brenda Hobbs (Abstain), Dewey Lassley (Yes). July 12,2012 3 1 HIGHLAND RIDGE SENIOR, LP BALANCE SHEET December 31, 2012 ASSETS CURRENT ASSETS Cash $ 89,523 Accounts Receivable 1,131 Accounts Receivable-Other 1,790 Prepaid Expense 13,678 Total Current Assets $ 106,122 RESTRICTED DEPOSITS Tenants' Security Deposits $ 17,523 MHDC Property Tax Escrow 3,629 MHDC Insurance Escrow (762) MHDC Replacement Reserve 36,357 MHDC Operating Reserve 80,262 Total Restricted Assets $ 137,009 RENTAL PROPERTY, Land $ _95,628 Buildings 4,644,124 4,739,752 Less Accumulated Depreciation (145,490) Total Rental Property, Net $ 4,594,262 OTHER ASSETS Organization Costs, Net of Amortization of $14 $· 91 TOTAL ASSETS $ 4.837,484 See notes to financial statements 3 f Actual Income Name of Project: Rental Income $156,859 Highland Ridge Other Income $6,910.00 Laundry/vending $0 Potential gross income $163,769.00 Less: Actual vacancy and collection $1,134 Effective Gross Income $162,635.00 Expenses Maintenance & Repair $24,214 Utilities $6,697 Administrative $38,164 Insurance $12,415 Reserve for Replacement ' $15,000 Total Expenses $96,490.00 Net Operating Income $66,145.00 Capitalization Loan to Value * Mortgage Constant 0.0032035 Weighted Equity Dividend Rate 0.0733600 Effective Tax Rate 0.0104842 Overall Capitalization Rate 0.0870477 VALUE $759,870.48 Tax on Appraised Value $7,966.63 1 OVERALL CAPITALIZATION RATE: m>-Im z mr- -Im r m E Z 0.¤ 0 2 0 X® C I 20 0.0 92 5& 55& E & g & 90< E 3 0 91 CD % (D .0 62.71 n Q gEL BLE -S 01 P bl O 00 ·68 -60 -4.*ea PO PP N N O ob 0.0870477 009 0 O CDO Co * 41 WO 2°8 2 6 4,9 - 9? 000 00 W odis o g g@g bbb 0 0 4.0 .WO & 00 900 *§8: 8 1 =00 000 50 400 010 0 000 IZ 6 > gm 20 O Po 0 0 C. m 0 .- ..9/Win i COMMISSIONERS SANDYWANKUM ADMINISTRAnVESECRETARY BRUCE E. DAVIS. CHAIRMAN RANDY B. HOLMAN. MEMBER R. RANDALLTURLEY CHIEF COUNSEL STATE TAX COMMISSION OF MISSOURI 8 301 WEST HIGH STREET, ROOM 840 POST OFFICE BOX 146 JEFFERSON CrrY, MISSOURI 65102-0146 4/ P TELEPHONE: 573/751-2414 <7 FAX: 573/751-1341 www.slc.mo.gov 0 Oil< MEMORANDUM DATE: June 30, 2011 TO: AII Assessors V FROM: State Tax Commission SUBJECT: Subsidized Housing Update * Acase arising out of Butler County and now before the Southern District of the Missouri Court of Appeals has the potential for changing the way assessors value subsidized housing. This case* pertains to a low income housing complex (40 units, community room, and office) subject to restrictive agreements with the Missouri Housing Development Commission. The apartments were built in 2006 for over $4 million and the State Tax Commission, using the Maoville Properties formula developed to value such property, determined a value of $888,300. In the late 1990s, the State Tax Commission's valuation of subsidized housing attributed some value to the accompanying tax credits. In Magville Properties v. Nelson, 83 S.W.3d 608 (W.DNo 2002) the Western District of the Missouri Court of Appeals ruled that the value of tax credits were not to be included because they were intangibles. Subsequently, after considering the benefits and risks associated with subsidized housing, the State Tax Commission determined that calculating value based upon actual income, actual expenses, and actual interest and capitalization rates was the best way to recognize ali benefits and risks associated with subsidized housing. In the Poplar Bluff Associates decision, the Commission said: In Lake Ozark Village v. Whitworth, the Commission stated: In this case, and all subsequent subsidized housing cases, the correct methodology for valuing subsidized housing projects is the methodology set out in Mmyville P,-operties. That methodology is accurate because (1) rent restrictions are considered through the use of actual income rather than market income; (2) additional management requirements and expenses are accounted for through use of actual expenses which are in excess of market expenses; and 0) the actual loan-to-value ratio and the subsidized interest rate demonstrates and accounts for any and all risks involved in the property as well as the benefits flowing to the property. It is "economic reality." The Butler County Circuit Court disagreed. The Poplar BhE#'Associates v. Tibbs decision held that using actual income and expenses rather than the market income and expenses while other apartment complexes used 21 1 1. A % 4--9* I - Page 2 / market data creates a lack of liniforkty and a prohibited fourth subclass of real property. The court, citing Snider v. Casino Aztar, also indicated that the cost approach for tile relatively new facility could have been utilized. Essentially, accgrding to the court, thil.qwjncome -housing should *e valued simiIarly to other -0 apartment complexes. On May 26,2011, the taxpayer appealed the circuit court decision. As a conseque#de of this case-®y pending-3 ip ®e Southirn Di*trict Court of Appeals, the State Tax Commission will stay all current and future appeals » _concerning subsidized housing properties until a final decision is rendered. * Captioned at the circuit court as Tibbs v. Poplai· BhcIAssociates 4 Butter County Circuit Court, No. 09BT-CV02672, and at the State Tax Commission as Poplar Bl€Estates v. Tibbs, Butler Coune, STC # 07-45502. J t f, 1, Christian County Board of Equalization July 16, 2012 Convene Presiding Commissioner Lou Lapaglia called the meeting ofthe Christian County Board of Equalization to order at 1:00 p.m. on July 16,2012 at the County Commission Office. Attendance: Lou Lapaglia, Present: Bill Bamett, Present: Tom Huff, Absent: Loyd Todd, Present: Susan "Sam" Yarnell, Present: Brenda Hobbs, Present: Dewey Lassley, Present.County Clerk Kay Brown is taking the minutes. The meeting was attended by Commission Secretary Cheryl Mitchell and Assessor David Stokely. 1:00 p.m. Board of Equalization Hearing Re: Jo Baker 601 E. McCracken, Ozark, MO. The meeting was attended by Commission Secretary Cheryl Mitchell, Assessor Staff: Barbara Stogner, Amy York, Susan Lopez. and Gary Buckley. Owners: Clarence Schickedanz and Jo Baker owners of the property located at 601 E. McCracken Road, Ozark, MO. 11-0.6-23-001-005-020.000 Previous assessment ofmarket value is 147,600 assessed vatue 28,040 2012 Assessment of market value is 153,800 assessed value 29,220 6-444 9 '·n .· A.:A:t The house was purchased by Mr. Schickedanz and Mrs. Baker in 2007 for $ 181,000.00 and no improvements have been done to the property. Mrs. Bakers inquired why in a declining housing market would property show an increase in value when the homes are selling for fifteen to twenty percent less. Assessor David Stokely said we have 36,000 parceis of real estate in Christian County and during our routine review ofproperty's out in the field, the data collectors noticed the file for the property of601 East McCracken did not contain a diagram or drawing of the property. After the property was carefully measured and sketched it was placed in the system. It was determined by the new data that the properly was actually larger than the information that was previously in the system. Assessor David Stokely said that the property has been under assessed since it was purchased in2007. The Assessor told Mrs. Baker that she has been under assessed and under taxed based on the information she provided. We are still low on your square footage. Dewey Lassiey, Brenda Hobbs and Loyd Todd said they had no opinion in regards to this property. Assessor Stokely said we are talking about an increase of twenty to thirty dollars difference for 191 feet. I 1.4 Presiding Commissioner Lou Lapaglia said to Mrs. Baker that he feels that the assessment is more than fair and she has the opportunity to appeal the assessment to the Missouri State Tax Commission. Assessor David Stokely advised the board to keep the assessment the same. Assessor David Stokely said we have tried to get the value of the record to be accurate and complete. He did not want to dismiss the fact that the percentage of the adjusted area has increased resulting in an increase in the assessed valuation. The Assessor said that his records were inaccurate before and we have corrected them. July 16,2012 1 r ,>.d •4 t Mrs. Baker said in her opinion, property values have declined by 15%to 20%. The purchase price was $ 181,000.00, according to your assessment it was inaccurate in the first place. t .4,£1, Mrs. Baker said that nothing has changed on the property. Assessor David Stokely said that he is following the Missouri state statutes in assessing real property. Motion/Vote - Assessment Remains Unchanged for 601 E. McCracken Road, Ozark, MO. Brenda Hobbs made a motion to keep the real estate assessment the same for the property located at 601 E. McCracken Road, Ozark, Missouri. Bill Barnett seconded the motion. The motion passed by vote: Lou Lapaglia Ores), Bill Barnett (Yes), Tom Huff (Absent), Loyd Todd (Yes), Susan "Sam" Yamell (Yes), Brenda Hobbs (Yes), Dewey Lassley (Yes). ·: ·r·i, 4 ' :/4', 1. July 16,2012 KAY BROWN 41.18. "D ammission tltrk or th' CHRISTIAN COUNTY 100 W. CHURCH ROOM 206 OZARK, MO 65721 Phone: 581-6360 Fax: 581 -8331 July 17, 2012 Mrs. Jo Baker 601 East McCracken Ozark, MO. 65721· RE: BOE Hearing on Parcel # (11-0.6-23-001-005-020.000) located at: 601 E. McCracken Road, Ozark, Missouri 65721 Owner: Mrs. Jo Baker and Clarence Schickedanz Dear Mrs. Baker, The Christian County Board of Equalization discussed your property assessment appeal and voted unanimously to keep the assessed value as provided by the County Assessor. However, you may appeal your property assessment to the State Tax Commission for review. The Board ofEqualization minutes of your hearing are enclosed and the following forms: • Instructions - Filling Out Comp!aint Forms • Complaint for Review of Assessment Form • A pamphlet entitled "Property Tax Appeals -Before the State Tax Commission of Missouri. Thank you for bringing your appeal before the Christian County Board of Equalization. Sincerely, Kay Brown, Secretary to the Christian County Board of Equalization 9,7 - PROPERTY ASSESSMENT APPEAL FORM CHRISTIAN COUNTY BOARD OF EQUALIZATION TAXPAYER INFORMATION Taxpayer's Name: *8,0.-.5£4•4uAQ#/- l fe 8.k,r Taxpayer's Mailing address: 60/ E Al a CA¢ok€,1 Pot tz.enk, mo 60674/ (Street or Box Number, City, State and Zip Code) PROPERTY INFORMATION ParcelNumberof theProperty: /1 -O.6- 13 -001 - D 06- e.:0·0°° Address of Property (if different than Mailing Address): (Street or Box) (City, State, and Zip Code) - What is the Current Classification of the Property? Agricultural Commercial --Residential Mixed Use What is the Market Value set by the Assessor? E 53 TOD 1I What is the Taxpayer's Proposed Market Value? REASON FOR APPEAL Please check the reason you believe the assessment is incorrect. Check aN that apply. Yaluation (The value placed on the property by the assessor is incorrect) -Discrimination (The property is assessed at a ratio greater than the average for the county) j 1 i. Misgraded Agricultural Land (Wproperty is not in the con·ect agricultural productivity grade) _Misclassification-The proper classification of this property should be: Residential Commercial Agricultural Charitable Purposes Exemption- The property should be exempt because it is being used for: Religious Purposes Educational Purposes Charitable Purposes _y_Other Basis for Appeal (explain): 3 duu m.6 4,46 .241 L.j $/44,1% - 210 -4,M.d L£*UA y Or..13 -4 You may attach any documentation you desire the-Board to ci. __ insidtr Taxpayer's Signature: L 2 U,» Date: 1- 15 -/2 .. 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Lq W ro 0 U 03 re.Nm nJ VALUEAPPRAISED C U . •- t. e SKETCH/AREA TABLE ADDENDUM Parcel No 11-0.6-23-1-5-20 ,1 Property Address g City State Zip 2 Owner E Client Appraiser Name t= 110 2.0 = B 03 2 04 CPI 1.0 IM ical B= B RES ..17. 1 18430 1,0. 1.0 250 0./ 110 a.u R 3600 Scale: 1 = 20 Code AREA CALCULATIONS SUMMARY Comment Table 1 Description Factor Not Size Perimeter Net Totals GI,Al RES 1.00 1843.00 188.0 1843.00 CUST GAR. 6 0.60 360.00 98.0 OP.2 0.20 13.00 36.0 WD.2 0.20 22.00 42.0 CP.5 0.50 181.50 88.0 CP.3 0.30 108.90 88.0 CP.5 0.50 132.00 70.0 WD.2 0.20 26.40 46.0 BSMT.6 0.60 1105.80 188.0 1949.60 Comment Table 2 Comment Table 3 TOTAL LIVABLE (rounded) 1843 Chrhein County APEX SOFIWARE 800·858-99SJ Ap<7100-w Apee 1. . OFFICE OF THE ASSESSOR CHRISTIAN COUNTY SANDRA BRYANT 0 100 W CHURCH ST ROOM 301 PHONE (417)-581-2440 OZARK, MISSOURI 65721 03/06/2007 SCHICKEDANZ, CLARENCE & JO 601 E MCCRACKEN ST OZARK MO 65721-0000 PARCEL# 11-0.6-23-001-005-020.000 BOOK#.2007 PAGE# 004152 DEED DATE: 03/02/2007 PROPERTY LOCATION: LOT 17 EASTGATE SUBDIV. 0 26-27-21 TO BENEFIT US IN OUR STUDIES THAT WE DO TO DETERMINE MARKET VALUE IN CHRISTIAN COUNTY, WE NEED THE FOLLOWING INFORMATION. YOU MAY USE THE ENCLOSED ENVELOPE TO RETURN IT TO THIS OFFICE. PLEASE INDICATE SITE ADDRESS IF DIFFERENT THAN MAILING ADDRESS. SITE ADDRESS: 601 6- HeeR.AckEW 02 ACK_ Street Number Street Name City PURCHASE PRICE: /84 000 . DID THIS INCLUDE LAND? >< YES. NO. .(zor) IF YOU BUILT YOUR OWN HOUSE, WHAT WAS THE CONSTRUCTION COST . (DO NOT INCLUDE THE COST OF LAND.) COST OF LAND: THANK YOU FOR YOUR COOPERATION. \ 1 l.==> SINCERELY SANDRA BRYANT ASSESSOR OF CHRISTIAN COUNTY * Agent Summary Report - Transaction Type Sale City Ozark Shot Address 601 to 601 Status Lisung Date r Listings as of 06/18/12 at 8:51am Expired 10/21/11 Listing # 1108845 601 E McCracken Ozark, MO 65721 Listing Price: $225,000 County: Christian Cross St: Prop Type Residential Prop Subtype(s) Single House Region CE-CE4 Subdivislon Eastgate Age 20+to 25 years Beds 5 App.Total Fin.Sq.Ft 4605 Baths(FH) 3 (30) Ycar Built 1986 Lot Sq Ft (approx) 17424 Tax ID 110623001005020000 Lot Acres (approx) 0.400 Occupant Owner 'Gene' Schickedanz/Jo BakPhoneto Show 417-894-0033 Owner Name Clarence E. Schickedanz and Jo Baker 417-894-0033 DOM/CDOM 122/122 Showing Instr. CLB, leave msg & try 2nd # for Christy @234-8624-claughter Directions Hwy 65 S. to Hwy 14 exit, East to 3rd St then N. on Riverside to McCracken, tum Rt on McCracken to home on left. OR J Hwy exit from 65 to NN Hwy S. to McCracken E. across blidge to Riverside E. to McCracken, Rt to home on left Marketing Remark FANTASTIC large family home with benefit of In-law or 2nd family quarters in finished walkout bsmt Main levells 3 bedrooms (huge Master), 2 baths, large Liv Rm with gorgeous fireplace & beautiful wood celling treatment, spacious kitchen & dining w/parquet floors, huge sunroom across back of home and utility! W/O bsmt offers 2 bedrooms (1 without window), 1 bath, Fam Rm, full kitchen/dining & util rm and bonus of another sunroom across the back of the home! Home is In updated, excellent condition, lot is gorgeous w/privacy fence, 2 decks, great landscaping, and huge parking pad for RV/Boat, etc. Range/ovens are both newer, as am the 2 heat pumps, and thermopane windows on upper sunroom plus the vinyl siding on back of home and the decks recenUy painted too. Most walls and cellings were painted when they purchased, and carpet was new in 2007. Whata great home! You better hurry on this oneil Agent-Only Rmrks With a little notice, easy to show, call Jo at 894-0033, leave msg as to what 1]me showing if she doesnt answer. If Jo doesnt answer and you have left msg with showing Info, then also try 2nd number for adult daughter Christy at 234-8624 who occupies 2nd family quarters. They will make it easy for you to show property! It's a pleasure to view, it is a great house and lott Room sizes are rounded. Listing Agent Donna Baldner (ID:512001235) Primary:41797123 Secondary:417-882-6222, FAX: 417-882-7653 Listing Office Mumey Associates-Republic Rd (ID:512000503) Phone: 417-882-6222, FAX: 417-882-7653 Agreement Type Excl.Right to Sell Listing Date 06/21/11 Expiration Date 10/21/11 Sub Agency3 Buyer Agency3 Transaction Broker3 Alternate Listing No Measurements By: Above Grade Finished 2524 Below Grade Finished 2081 Below Grade Unfin. 231 SQ FT Provided By: appraisal 1 Lot Size Provided By appraisal Apx Year Built 1986 Sq.Ft.Fin.+ Unfin. 4800 - 4999 Apx Lot Size (Acres) Less than.50 Acres How to Show Call 1st then LB, See Remarks LB Type GSBOR Listing Broker is: Sellets Agent Inside City Limits Yes Fire District Ozark Named Buyer ExcludedNo Keywords Garage Spaces #2 Garage Type Attached Style Ranch Lot Dimensions 115*150 Legal Description Lot 17 Eastgate Subdiv. 26-27-21 Elementary School OZ North Middle School Ozark High School Ozark Approx. Room Sizes Livingroom 18x18 Family Room 30*12 in basement . Kitchen 20x12 plus a 2nd kitchen in basement Kitchen Dining Area area Add'I. Rms 2 sunrooms, main is 56x10, bsmt 35x10 Bedroom 1 24x16 Bedroom 2 14*12 Bedroom 3 14*12 Bedroom 4 24*16 in basement Bedroom 5 16xll In bsmt-no window Property Features Reo/Bank Owned No Architecture Traditionat Basement Yes Basement Type Walkout Finished Cooling Attic Fan, Central, Heat Pump (both new In 2007), Dining Kit/Din Combo Electric, Zoned (2+ Units) Equipment Auto Garage Opener (2), Ceiling Fans (101 Dishwasher Exterlor Extras Deck (2), Fence/privacy, Fence/wood, Gutters & (2), Disposal, Electric AirFilter (lower level only), Elec Downspouts, Pauo/covered, Porch/covered, Satellite Oven/Range (2-glass top), Elec. Water Heater, dish, Storm Doors, Storm Windows (some), Thennopane Freestanding Stove, Hot Tub (on patio, it stays), Windows (some), TV Antenna (attic) Humidifier, Sound System (seller not using), Walk-in Shower, Water Softener/Own Exterior Material All Brick (75%, 3 sides), Brick/Perm. Slding (3 sides brick)Flreplace Yes Fireplace Type One, WoodbumIng Fireplace Location Living Room Flood Insurance Not Required Gas None Heaung Forced Air, Heat Pump (new in 2007), Electric, Wood Interior Fireplace Equipment. Floors/carpet, Floor/other wood (wood furnace In add'n to heat pump) (parquet in dining), Floors/ttle, Floors/vinyl, Reserved Items (Liv Rm top window treatments), Shade/Blinds/Shuttr, Smoke Detector Lot Mature Landscaping Other Rooms Bedrm(Downstairs), Bedrm-Mas.(Main FO, Family Rm (Lower FO, Family Rm(Main Fl) (Sun Room), In.law Quarters (bsmt-2 BR, bath, 2nd Ill Fam Rm, util), Living Areas (21 Living Areas(3 +), Rec. Room (sunroom could be). Sun Room (2, main and basement level), Workshop (John Deem Rm) Possession Negollable Utility Room Main Floor. Basement (2nd utility room) Roofing Material Composition Sign on Property Yes Streets AsphaIt Water & Sewer City Water, Sanitary Sewer will Sell Cash, Conventional, FHA, VA Real Estate Tax 1548.18 RE Tax Provided By Assessofs records Tax Year 2010