THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, November 11, 1994 TAG: 9411110688
SECTION: LOCAL PAGE: B15 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: LOVINGSTON LENGTH: Short : 46 lines
The Nelson County Board of Supervisors has agreed to a settlement that could end a two-year legal battle with Wintergreen property owners.
The settlement, contingent on approval by the Wintergreen Board of Directors, would resolve a controversy about ``double taxation.''
Problems trace back to 1984, when a group of investors, mostly property owners, formed a corporation to buy the resort properties of Wintergreen.
The corporation - called Wintergreen Partners Inc. - was formed by 2,400 people who each invested $6,000. As part of the investment, members in WPI received lifetime discounts on ski lift tickets and greens fees at Wintergreen.
WPI was formed as a nonstock corporation, comparable to a country club. Legally called a ``regular membership corporation,'' WPI membership was voluntary - meaning not all lots in Wintergreen included a WPI membership.
But when the county reassessed property values in 1990, assessors found lots including membership in WPI brought a higher price than others.
``The constitution requires the assessment of property at fair market values,'' said Frederick W. Payne, an attorney representing the county in the case. Noninterested third parties were willing to pay more for property including membership in WPI, he said, and consequently, lots including membership were assessed at a higher price than those without.
But residents complained, saying the county was taxing not only the property but the property rights owned by residents who belong to WPI.
The proposed settlement changes the qualifications for membership. WPI will change to an ``automatic membership corporation'' effective Jan. 1, 1995.
``You are not permitted to be a member if you don't own property and if you own property, you are automatically a member,'' said Payne.
Once the legal definition of WPI changes, state law will determine the taxation of members.
The property owned by the corporation cannot be taxed, Payne said this week. The value of the corporation's property will be determined and split among members of WPI, who will pay a separate property tax on their share. by CNB