The Block Island Land Trust's policy on tax exemption for furniture was challenged at the trust's meeting Monday, July 22, but the trustees decided to stand fast.
Island properties frequently change hands with some furniture and appliances included, and furniture and personal possessions are exempt from the Land Trust's 3 percent tax on real estate transfers. Several times a year the trust receives exemption claims that seem "out of line," said Nancy Pike, president of the trust.
So in June notices were sent to lawyers and real estate agents and brokers. It said in part:
"It has come to the attention of the trustees... that certain attorneys are advising their clients that they can allocate $20,000 to personal property... and this will not be reviewed by the Land Trust. Please be advised that the Land Trust will review all allocations to personal property... unless the allocation is accompanied by an appraisal..."
Attorney Elliot Taubman came to the meeting Monday to protest. "You are asking for everybody to have an appraisal," he said. "That's a major burden."
"Not at all," Pike responded. "We're just saying we will review the claims unless it comes with an appraisal. If we see a claim for $50,000 or $100,000 worth of furniture, not substantiated by an appraisal, of course we'll ask questions."
Or, she added, if a $10,000 value is set on a few pieces of bedding "that in all likelihood will have to go to the transfer station," that would be questioned too.
In other matters:
Library exemption – When the Island Free Library paid a neighbor $20,000 for a driveway easement, it asked that the $600 Land Trust fee be waived. The trust's rule is that it cannot waive a fee but it can return it for something of value; the library suggested an easement over the garden in the rear of the building. But the garden was lost to the addition and parking spaces. Further discussions are needed, the trustees concluded.
Ocean View – The trust agreed to spend up to $750 to clear and protect the remnants of the old cistern at the hotel foundation.
Financial reports – Irked at the lack of up-to-date financial reports from the town Finance Office, the trustees agreed to send a letter to Town Hall.