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JUDGE REMOVES RELIGIOUS TAX EXEMPTION FROM SHORE ACRES DRIVE HOME
By Linda Blaser
Lake Forester
http://www.pioneerlocal.com/lakeforest/news/16776 02,lake-forest-lbchurch-072309-s1.article
July 23 2009
Owner had saved more than $60,000 on 2007 bill
George Michael of Lake Bluff lost his "church" tax exemption status for
his multi-million dollar home and will be billed for the outstanding
2007 property tax bill in May 2010, according to Assistant State's
Attorney Karen Fox.
"We will add them to the next year's tax bill. Technically, there's
nothing on the tax rolls for this property," Fox said Tuesday.
The total 2007 tax bill for the property at 1955 Shore Acres Drive
was $77,822. Under the exemption, that bill was reduced by 78 percent,
or by $60,701.16.
On July 6, Administrative Law Judge Kenneth Galvin removed the
religious tax exemption granted by the Illinois Department of Revenue
on June 12, 2008 for the property which the Susan Michael bought for
$3 million in 2004.
Fox said she has not heard if Michael will appeal the reversal.
'Wait and see' "They have maybe 35 days to appeal this. We might just
have to wait and see," Fox said.
George and Susan Michael contended their 15,000-square-foot home
overlooking Lake Michigan was used for religious purposes as an
Armenian Church when Susan Michael signed a quit claim deed on March
22, 2007. On Nov. 20, 2007, the Michaels filed a Religious Application
for Non-homestead Property Tax Exemption form.
George Michael said that he was an ordained reverend, that church
services were held in their home and that those services were open
to the public. The Armenian Orthodox Church claimed no affiliation
with Michaels' church.
During his deposition, Michael testified he was ordained a reverend
in the Church of Spiritual Humanism via the Internet. The Church of
Spiritual Humanism is a non-Christian church that is not related to
the Armenian Orthodox Church, according to the 29-page decision.
"It is clear from the record in this case that, as a matter of law,
the subject property does not qualify for exemption," the judge said
in the decision signed on July 6.
The village of Lake Bluff and Lake Bluff Elementary School District
65 requested the hearing before the an administrative law judge
to reconsider last summer's decision by the Illinois Department of
Revenue to grant a "Non-Homestead Property Tax Exemption Certificate"
to the Armenian Church of Lake Bluff.
"The judge's decision confirmed what the village felt strongly about
all along, which is that the property clearly did not and does not
qualify for property tax exemption," said Village Attorney Peter
Friedman. "It's a case the Illinois Department of Revenue should have
rejected from the outset."
Village Manager Drew Irvin said that the $139,000 cost to fight the
tax exemption will be paid for through a collaboration of the school
district, the village and other taxing bodies that lost tax dollars.
"The village will not bear that cost alone," Irvin said, but would
not indicate the exact cost to the village. Irvin did say the village
and other taxing bodies would not be able to recoup those costs from
the Michaels.
Irvin called the process "very frustrating" and "very, very expensive
for everyone" but necessary to overturn the ruling.
Otherwise, he said, "the exemption could have gone on forever."
From: Emil Lazarian | Ararat NewsPress
By Linda Blaser
Lake Forester
http://www.pioneerlocal.com/lakeforest/news/16776 02,lake-forest-lbchurch-072309-s1.article
July 23 2009
Owner had saved more than $60,000 on 2007 bill
George Michael of Lake Bluff lost his "church" tax exemption status for
his multi-million dollar home and will be billed for the outstanding
2007 property tax bill in May 2010, according to Assistant State's
Attorney Karen Fox.
"We will add them to the next year's tax bill. Technically, there's
nothing on the tax rolls for this property," Fox said Tuesday.
The total 2007 tax bill for the property at 1955 Shore Acres Drive
was $77,822. Under the exemption, that bill was reduced by 78 percent,
or by $60,701.16.
On July 6, Administrative Law Judge Kenneth Galvin removed the
religious tax exemption granted by the Illinois Department of Revenue
on June 12, 2008 for the property which the Susan Michael bought for
$3 million in 2004.
Fox said she has not heard if Michael will appeal the reversal.
'Wait and see' "They have maybe 35 days to appeal this. We might just
have to wait and see," Fox said.
George and Susan Michael contended their 15,000-square-foot home
overlooking Lake Michigan was used for religious purposes as an
Armenian Church when Susan Michael signed a quit claim deed on March
22, 2007. On Nov. 20, 2007, the Michaels filed a Religious Application
for Non-homestead Property Tax Exemption form.
George Michael said that he was an ordained reverend, that church
services were held in their home and that those services were open
to the public. The Armenian Orthodox Church claimed no affiliation
with Michaels' church.
During his deposition, Michael testified he was ordained a reverend
in the Church of Spiritual Humanism via the Internet. The Church of
Spiritual Humanism is a non-Christian church that is not related to
the Armenian Orthodox Church, according to the 29-page decision.
"It is clear from the record in this case that, as a matter of law,
the subject property does not qualify for exemption," the judge said
in the decision signed on July 6.
The village of Lake Bluff and Lake Bluff Elementary School District
65 requested the hearing before the an administrative law judge
to reconsider last summer's decision by the Illinois Department of
Revenue to grant a "Non-Homestead Property Tax Exemption Certificate"
to the Armenian Church of Lake Bluff.
"The judge's decision confirmed what the village felt strongly about
all along, which is that the property clearly did not and does not
qualify for property tax exemption," said Village Attorney Peter
Friedman. "It's a case the Illinois Department of Revenue should have
rejected from the outset."
Village Manager Drew Irvin said that the $139,000 cost to fight the
tax exemption will be paid for through a collaboration of the school
district, the village and other taxing bodies that lost tax dollars.
"The village will not bear that cost alone," Irvin said, but would
not indicate the exact cost to the village. Irvin did say the village
and other taxing bodies would not be able to recoup those costs from
the Michaels.
Irvin called the process "very frustrating" and "very, very expensive
for everyone" but necessary to overturn the ruling.
Otherwise, he said, "the exemption could have gone on forever."
From: Emil Lazarian | Ararat NewsPress