The five-member Apache Junction Sewer District Board sees benefits in seeking 501(c) tax-exempt status for the nonprofit utility such as not paying sales taxes on items needed to construct new facilities.
Board Member Roy Starr made the suggestion during an Aug. 26 meeting that the district’s qualification for tax-exempt status as a utility and not-for-profit organization be discussed, according to the meeting’s minutes.
District Counsel Jason Cassidy worked 7.5 hours on the issue, billing the sewer district $2,920 in legal fees to research 501(c) eligibility for governmental entities, research transaction privilege tax exemptions, confer with an individual on tax exemptions and indemnity risks, begin drafting a memo, finishing the first draft of the tax-exemption memo, and focusing on available options and their ramifications, according to an invoice from Cassidy Law Firm PLC.
