Commander Moon: ‘A zero-tax measure would clear up much of the confusion’
ST. PAUL — American Legion Post 201 in Mora has no bar or restaurant. It has a small piece of land with a veterans memorial on it, and a building which displays local veteran-related memorabilia, like a museum. It functions as a meeting space.
Still, Kanabec County wants to charge the post $7,000 in commercial property taxes. The American Legion, VFW and other organizations in the Minnesota Commanders’ Task Force are calling on lawmakers to treat the 501(c)(19) and 501(c)(4) veteran organizations like 501(c)(3)’s and let them qualify for zero property taxes.
On Wednesday, Mora Post 201 Adjutant Alan Skramstad, a former Mora mayor, testified at the State Capitol before the House Veterans Affairs Division, which is a subcommittee of the State Government Finance and Policy Committee.
“Our post has no intentions of using the site for commercial enterprise, except for meetings and as an educational tool for the community,” he told the lawmakers. “Currently, we charge no fees to use the meeting room.”
Joining him were American Legion Department Commander Carl Moon and VFW Department Commander David Staehlin. State Rep. Peggy Bennett of Albert Lea is the chief sponsor.
Moon pointed out how many posts have closed and the community suffered from the loss of their fundraising efforts for other nonprofits. He noted how many tax assessors have confusion over tax laws.
“A zero-tax measure would clear up much of the confusion county assessors across our 87 Minnesota counties have regarding posts’ taxes. This drives workload and inefficiencies that are inevitably covered by taxpayers,” Moon said.
People often assume posts are just bars and restaurants or places to gamble.
“We prop up small, local nonprofits providing important community services including youth sports, addressing food insecurity and homelessness, and funding public safety equipment for our cities, such as fire trucks. These are important gaps filled that federal, state, and local government cannot address.”
He added that the American Legion has 531 posts, and 261 of them have buildings. He said Stillwater, Marshall, Northfield, Waite Park, Coon Rapids and others, especially in the metro, have had to sell their buildings to survive in recent years.
“How many more communities will need to lose the gathering center for charity fundraising and activities before relief is provided?” Moon asked.
Staehlin went through the various costs posts are facing: payroll taxes, insurance costs, building upkeep. He said these places have been generous with their communities and are 100 years old. He said in gambling alone VFW posts gave $1.6 million last year. That’s not counting bake sales and other fundraisers happening at the posts.
The banquet spaces often are free for local nonprofits to use, and when they do charge, such as for wedding receptions, they cost less than many other options. It is a service for people celebrating key moments in life but without the deep pockets often needed, he said.
The committee voted to refer the bill to the House Taxes Committee.
