The YMCA of the Rockies on Thursday tentatively gained tax-exempt status for its two lucrative campuses in Larimer and Grand counties, upsetting local government agencies and competing tourism-related businesses.
State property-tax administrator Mary Huddleston granted the request by the YMCA camps to take their properties off the tax rolls because of the religious underpinnings of the organization.
The move will save the YMCA about $530,000 from tax year 2004, and it is retroactive to tax year 2002, when the organization made the request for tax exemption, meaning taxing districts will have to repay the money already collected.
“For us, this has been an issue of fairness,” said Kent Meyer, president and CEO of YMCA of the Rockies, which runs an 858-acre campus in Estes Park and the 2,187-acre Snow Mountain Ranch near Tabernash. “We feel the ruling is a true validation of our Christian mission of serving groups, families and youth in a wholesome environment.”
Other tourist-oriented businesses have complained that tax-exempt status for the YMCA camps will give a significant advantage to their competitors.
“It definitely will enable them to charge less than we do because if people don’t have to pay the tax, then their total bill comes out less. And that’s something we can’t compete with,” said Mary Bahus- Meyer, sales and marketing manager for the Sylvan Dale Guest Ranch in Loveland.
Tax districts in both counties lamented the loss of revenue from an organization that isn’t specifically religious by nature and caters to all faiths.
“This is a pretty big hit to our tax base, and I think it’s going to be a hit to the businesses up there,” said Frank Lancaster, administrator for Larimer County, which will lose more than $100,000 annually. “We’ve got a tight budget as it is. Last year, we did lay off some employees, and the loss of any revenue will certainly hurt us.”
Among the entities most affected will be school districts, fire departments and, to a lesser extent, agencies such as libraries and water-conservation districts.
The East Grand School District, for instance, will need to refund about $317,000 in a lump-sum payment, and the Park R-3 District in Estes Park is looking at a $400,000 bill, money that will be recouped the following year through higher property taxes.
The YMCA won tax exemption for its land, conference centers, dining halls, lodges and rental cabins, and camp amenities such as crafts halls and activities centers, but did not seek exemptions for year-round employee housing and concessions such as the livery operations.
While the final ruling is subject to a 30-day appeal, Meyer said the YMCA would be willing to discuss repayment options with taxing entities.
Staff writer Steve Lipsher can be reached at 970-513-9495 or slipsher@denverpost.com.