Post by suthg on Jun 20, 2014 7:18:30 GMT 12
Millionaire entrepreneur Jerry Yagen
has loaned a portion of his vintage plane collection to the Military Aviation Museum in Pungo since it opened in 2008. It's where they're displayed, worked on and flown for air shows, fun and - for some visitors - a fee.
Yagen never received a personal property tax bill for the aircraft, for which he's now seeking a tax exemption, and could end up owing several years of back payments, Chief Deputy Commissioner of the Revenue Eric Schmudde said Friday.
City officials realized the oversight last fall after Yagen announced he was in financial trouble and would have to sell the planes, Schmudde said. Yagen sold a dozen before taking them off the market when he said his finances improved.
The Commissioner of the Revenue's Office is auditing how much he should have paid. It can legally bill Yagen for up to three years of back taxes, in addition to issuing a tab for the current year, Schmudde said.
It's difficult to put a price on one-of-a-kind aircraft, Yagen said. They've been valued between $20,000 and $7 million each, which would mean a tax bill of $740 to $259,000 per plane per year. The museum has about 60 aircraft, Director David Hunt said.
Yagen said Friday that he's working with the city on the issue and believes the planes should be exempt from taxation because they're used by the museum, which is a nonprofit.
....... for more click the link below...
Yagen, who owns several private, for-profit colleges, said he has subsidized the museum for a long time, sometimes to the tune of $2 million a year. A tax exemption could save the museum if he died or ran into dire financial straits again, he said.
"The sole purpose of that museum is to operate those airplanes," Yagen said. "And the taxes is a very big expense."
Story from Virginia Beach
By Kathy Adams
The Virginian-Pilot
© June 16, 2014
Pilotsonline.com
has loaned a portion of his vintage plane collection to the Military Aviation Museum in Pungo since it opened in 2008. It's where they're displayed, worked on and flown for air shows, fun and - for some visitors - a fee.
Yagen never received a personal property tax bill for the aircraft, for which he's now seeking a tax exemption, and could end up owing several years of back payments, Chief Deputy Commissioner of the Revenue Eric Schmudde said Friday.
City officials realized the oversight last fall after Yagen announced he was in financial trouble and would have to sell the planes, Schmudde said. Yagen sold a dozen before taking them off the market when he said his finances improved.
The Commissioner of the Revenue's Office is auditing how much he should have paid. It can legally bill Yagen for up to three years of back taxes, in addition to issuing a tab for the current year, Schmudde said.
It's difficult to put a price on one-of-a-kind aircraft, Yagen said. They've been valued between $20,000 and $7 million each, which would mean a tax bill of $740 to $259,000 per plane per year. The museum has about 60 aircraft, Director David Hunt said.
Yagen said Friday that he's working with the city on the issue and believes the planes should be exempt from taxation because they're used by the museum, which is a nonprofit.
....... for more click the link below...
Yagen, who owns several private, for-profit colleges, said he has subsidized the museum for a long time, sometimes to the tune of $2 million a year. A tax exemption could save the museum if he died or ran into dire financial straits again, he said.
"The sole purpose of that museum is to operate those airplanes," Yagen said. "And the taxes is a very big expense."
Story from Virginia Beach
By Kathy Adams
The Virginian-Pilot
© June 16, 2014
Pilotsonline.com
