Creationists Have Sold Ark Encounter. To Themselves. For $10. To Avoid Taxes.

Authored by patheos.com and submitted by E3Ligase

I’ve posted before about how Williamstown (Kentucky) officials are instituting a “safety fee” for ticket-taking attractions in the city.

If implemented, the city would charge Ark Encounter 50 cents per ticket to go towards things like fire trucks and police cars — all the things that make the city a safer place for residents and tourists. Using the estimate of 1.4 million visitors a year, this would amount to approximately $700,000 that Ark Encounter would owe the city annually.

The Creationists at Ark Encounter, however, say they should be exempt from that charge because they run a non-profit ministry. You wouldn’t force a church to pay taxes, now, would you?!

The problem is that up until now, Ark Encounter has legally been a for-profit business in order to receive a number of tax incentives from the city and state. That’s why officials in Williamstown figured they could ask Ark Encounter to pay up. It’s not a church; it’s a money-making tourist attraction. They recently went ahead with their plans to make Ark Encounter pay the fee.

City leaders are now bracing for a lawsuit from the very organization that was supposed to save the local economy.

Meanwhile, Ark Encounter just took the boldest step yet to avoid paying the 50 cent surcharge.

According to the Lexington Herald-Leader‘s Linda Blackford, the team behind Ark Encounter recently sold the land on which the giant boat rests for a whopping $10.

… Ark Encounter LLC sold its main parcel of land — the one with the life-size Noah’s Ark — for $10 to their non-profit affiliate, Crosswater Canyon. Although the property is worth $48 million according to the Grant County Property Valuation Administrator, the deed says its value is only $18.5 million. That’s the latest salvo in an escalating argument between local officials and Ark Encounter, but some are worried Ark Encounter’s maneuver is a precursor to declaring itself exempt from all taxes, including property taxes that help fund Grant County schools.

Just to summarize here, Ark Encounter used its for-profit status to receive all sorts of tax breaks. Then the Creationists told Williamstown officials that they ran a non-profit ministry to avoid paying more taxes. And now they’re basically confessing that they were a for-profit business this whole time because they just sold the boat to the non-profit entity that oversees it.

If that’s confusing… well, welcome to how Creationists think.

Let’s suppose for a moment that all of this is legal. At best, it suggests that Ark Encounter is incredibly unethical. Williamstown gave the Creationists cheap land and tax breaks galore over the next few decades with the hope that Ark Encounter would eventually create lots of jobs and bring in tourists who would spend money at surrounding businesses.

Ken Ham is paying them back by restricting jobs to his anti-gay Creationist buddies, threatening to sue the city over the safety fee, and finding a way to possibly withhold taxes that would fund local schools.

[Mayor Rick] Skinner said losing all of Ark Encounter’s property taxes would hurt the city, county, and most of all, schools. “It would be a huge hit to the schools,” he said. Skinner said he is “disappointed” in how much the town’s relationship with Ark officials has deteriorated, but said he would wait to comment further until Tuesday’s meeting.

Here’s a statement that will surprise nobody: Ken Ham doesn’t care about public schools. When you’re playing the game of Christian indoctrination, education is the enemy. You think Ham gives a damn about public schools not getting money from his business? Not a chance. He’ll consider that a victory.

Once again, Creationists are screwing over the city that bent over backwards to give them a home. Critics have been saying that for years. Unfortunately, it looks like local officials are finally realizing it when it’s too late.

Orfeou on July 19th, 2017 at 03:47 UTC »

I wonder if this would apply:

The so-called sham transaction doctrine is “judge made law” which will deny advantageous tax treatment where transactions are carried out primarily for tax avoidance purposes and they lack a bona fide business purpose.

This doctrine tends to be applied where a taxpayer attempts to disguise a transaction and make it appear to be something that, in reality, it is not. When it is applied, the courts will ignore the form of the transaction and declare it to be a “sham” and then proceed to ascertain the tax impact based upon the court’s view of the substantive nature of the transaction. A transaction that is labeled a sham when it is deemed to not be motivated by a legitimate business purpose other than its anticipated tax benefits (in other words, tax savings does not qualify as a legitimate tax purpose), will be deemed to lack economic substance because there is no reasonable expectation of profit and thus will be disregarded for tax purposes.

From https://klasing-associates.com/question/sham-transaction-doctrine/

seeingeyefrog on July 19th, 2017 at 02:36 UTC »

Render unto Caesar

The bibles take on tax evasion.

autotldr on July 19th, 2017 at 01:07 UTC »

This is the best tl;dr I could make, original reduced by 79%. (I'm a bot)

According to the Lexington Herald-Leader's Linda Blackford, the team behind Ark Encounter recently sold the land on which the giant boat rests for a whopping $10. Ark Encounter LLC sold its main parcel of land - the one with the life-size Noah's Ark - for $10 to their non-profit affiliate, Crosswater Canyon.

That's the latest salvo in an escalating argument between local officials and Ark Encounter, but some are worried Ark Encounter's maneuver is a precursor to declaring itself exempt from all taxes, including property taxes that help fund Grant County schools.

Williamstown gave the Creationists cheap land and tax breaks galore over the next few decades with the hope that Ark Encounter would eventually create lots of jobs and bring in tourists who would spend money at surrounding businesses.

Extended Summary | FAQ | Feedback | Top keywords: Ark#1 Encounter#2 city#3 schools#4 officials#5