Center in Boyers Junction loses tax-exempt status [Reading Eagle, Pa.]

Jan. 07--Brenda Degler can recall the good old days at the Boyers Junction Community Center.

The days when carnivals and peach festivals were annual events. And when church congregations had picnics on the 46-acre property in Ruscombmanor and Rockland townships.

It's a bit quieter there today. But the community center remains a hub for fishermen, nature lovers and hikers.

All of that could change in the coming years though, with Berks County revoking the center's tax-exempt status after four decades.

"We've been tax exempt since 1970," said Douglas Hilbert of Rockland Township, the center's vice president. "We're talking 41 years and now all of a sudden they want to take it away?"

Degler, also of Rockland Township and the center's treasurer, added, "I'm just sick about it."

The decision was announced last summer in a letter from the Berks County Board of Assessment Appeals. The tax-exempt status was removed Jan. 1 for county and municipal tax purposes. It will be taken away July 1 for school tax purposes.

An appeal filed by the organization was denied in November.

According to John W. Cleek Sr., a member of the county Board of Assessment Appeals, the reason for the tax status change comes down to membership fees.

At present, the Boyers Junction Community Center charges a $20 annual fee for adults, $25 for new members and $5 for children, in addition to $20 for a fishing badge. Use of the pond and surrounding property is restricted to members.

"Because they (the community center) are a membership organization that charges fees, they don't generally qualify (for tax-exempt status)," Cleek explained. "An organization must offer opportunity for citizens to come in and participate in the organization without having to pay any dues."

The tax status of county organizations are reviewed periodically, so it's possible that in previous years, the board had not been aware that the community center was charging membership fees, he noted.

"Somebody brought it to our attention," Cleek said, adding that if membership fees were to be dropped down the road, the center could reapply for tax-exempt status.

"The key is they are charging a membership fee, and according to state law, you must provide that service with no fee," Cleek said.

With membership fees making up the bulk of its income, the community center is in a bind. At present, dues from 226 members brings in about $4,800 each year.

Based on an assessed value of $177,500 for 38.25 acres and a small building, the community center would pay a total of about $5,500 in annual taxes to the Oley Valley School District, Berks County and Ruscombmanor Township. Tax information for the acreage in Rockland Township wasn't immediately available.

"We run on very little money," Degler said. "Right now, we have about $400 in our checking account."

Of the income generated, she explained, all of it goes back out in the form of upkeep, liability insurance and fishing rodeo prizes.

The biggest expense is also the center's biggest draw: the fish.

"It's expensive to put fish into the pond," Degler said. "It's like $4.10 for a 14-inch trout. They're not cheap. And we don't put anything in under 13 inches."

While community center President David Hess understands the criteria to be tax exempt, he acknowledges the community center's uncertain future.

"The thing is, how do you operate a park without any money?" asked Hess of Rockland Township. "There's no county money. This is all community money. It's all volunteer work.

"Now we've either got to try and go full-scale and raise money and kill ourselves to pay the county tax so we can keep going, or just let it fall to the side."

A few years ago, a membership fee increase of just $10 resulted in the loss of nearly 75 members, Degler said.

One possible move would be to try and have the property reassessed by the county.

"They're taxing us on the full amount of the land and three-fourths of it is wetlands," she said. "We want to check into that. And someone told us that maybe if we keep the pond separate we can still charge membership."

Other possibilities include changing membership dues to a suggested donation.

"Sometimes the wording means a lot," Degler said.

Contact Becca Y. Gregg: 610-371-5032 or [email protected].

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