There would be no sales tax benefit derived from the Apache Junction Sewer District obtaining 501(c) tax-exempt status for the nonprofit utility, the five-member volunteer board was told recently.
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 Manager Darron Anglin and District Counsel Jason Cassidy separately researched the benefits in seeking 501(c) tax-exempt status for the utility such as not paying sales taxes on items needed to construct new facilities. They updated the board Sept. 23 about their progress and then on Oct. 28 to say it was not possible.
