A property tax reversal for The New Homestead was discussed at the recent Guthrie County Board of Supervisors meeting.

County Treasurer Marci Schreck informed the Board that since the Iowa Court of Appeals last January reversed a ruling made in district court that denied a property tax exemption for the Guthrie Center-based nursing facility, the County must refund the last two years of taxes to Capstone Group, Incorporated, which owns The New Homestead. The total amount is $164,518, which includes about $68,793 that went to the City of Guthrie Center, $53,594 that went to the Guthrie Center School District, and about $24,963 that went to the County.

Schreck mentioned that the County Board of Review filed an appeal to the Iowa Supreme Court, which was denied in March. Capstone had purchased the facility in 2013 and it was exempt from property tax until May 23, 2017 when the Board of Review changed its classification to taxable multi-residential property.

The Court of Appeals’ January ruling stated that Capstone is a charitable institution that operates the nursing facility solely for charitable purposes. A copy of the opinion can be found here.