Save the Lyon group in talks over back taxes
By ROB PRICE THE COURIER-ADVOCATE

BATH - Representatives of the Save the Lyon Commission last week met with the Steuben County treasurer to review a potentially thorny issue: back taxes totaling $6,000 that Treasurer Carol Whitehead says date to 2006.

According to Whitehead, the taxes include 2006 Bath village and Haverling school taxes. Village, town and county taxes for 2007 also are owed, she said.

But foreclosure is an unlikely scenario, Whitehead told The Courier following the meeting. The Commission currently is suing the Town of Bath over former assessor Sandra Porter's decision to deny the group tax exempt status for 2006. The group received a tax exempt designation in February 2007, and Commission members say that same designation should be applied to 2006, as well.

If it wins the case, the tax bill would be cancelled, according to attorney Alan Knauf, who has been representing the Lyon Commission since its formation. "We don't think any taxes are due, because they're a tax exempt organization," Knauf told The Courier.

Whitehead indicated she wants to see the tax status resolved, as well. "Since they're in the middle of litigation, I didn't feel comfortable giving any kind of opinion one way or another," she said. "There is no foreclosure issue at this point. Hopefully they would have this resolved."

The Save the Lyon Commission was formed originally to protect the former Dana Lyon school building against demolition by the development company Liberty-East Washington LLC. It has succeeded in taking possession of an older portion of the building, built in the late 19th century, and is currently suing - in a separate case - to have the larger 1923 portion returned to the Haverling school district.

The Commission initially applied for tax exempt status in 2006, but Porter rejected the application because she believed the group had not met requirements for the classification. "Based on information supplied," Porter wrote the Commission in 2006, "... your organization was formed to beautify the building and not benefit the public as a center for the arts. I must evaluate your situation as of the (exemption) filing date of March 1, 2006."

While Whitehead said she wants to see the exemption issue settled, she noted property owners who owe back taxes have a variety of options, including entering into an contract to make installment payments. Steuben County came to such an agreement with Liberty-East Washington LLC on a late tax bill; the limited liability corporation is no longer considered delinquent, Whitehead noted.

Rosalie Niemczyck, president of The Save the Lyon Commission, said the organization can afford to pay the back taxes if necessary. "Absolutely," she said, adding the meeting with Whitehead was "very productive."

"I know when it works out, it will be fine," Niemczyck said of the tax issue.