Another island: The Otterøy Housing and Care Center was transferred from Namsos Municipality to Nye Heimen AS in 2016. The purchase price for what was transferred was 1 kr.
exemption
Nye Heimen AS received an exemption for the property in 2016 through the 2022 tax year.
The company has applied for property tax exemption for Skomsvollvegen 1269 from January 1, 2023 with the following justification: The property was taken over by Nye Heimen AS as a donation from the residents of Otterøya to be used for general purposes and to prevent it from falling into disrepair.
The operation of the property was at a loss, except for the two periods when the property was leased by the municipality.
Most of the equity capital of NOK 950,000, which was subscribed by about 350 people in the enterprise, was used.
The operation is divided into two parts, one is event rental and room rental for lodging. The second is measures for the local population.
Nye Heimen AS has no employees, and operations are carried out by members of the Board of Directors. They equate themselves to volunteer-run, property-tax-exempt community and youth centers.
practice change
After reviewing the red tape surrounding exemption from property tax pursuant to Section 7a of the Property Tax Act, the Municipal Administrator saw that there was a basis for a change in practice.
– A number of businesses that were exempted in previous years do not fulfill the purpose and intent of the law, and this leads to preferential treatment over other businesses that manage commercial operations, the director of the municipality stated in the case of submitting to the municipal council before Easter.
He noted that the exemption for Nye Heimen AS did not continue in the 2023 property tax decision.
The property tax rate for Nye Heimen As is NOK 552,000, which represents a tax for 2023 of NOK 2,152.
According to the Municipal Administrator, there is no other person in Namsos Municipality who works on the same lines as Nye Heimen AS.
The company rents out dormitories and housing and there are no permanent leases. The remaining space is rented for meeting rooms, offices and banquet rooms. Typical tenants are fishermen and artisans who will be in Otterøya for a few days. In 2022, they have rented 221 lodging nights.
The Otterøy Volunteer Center rents space, and the same goes for the history team, body and sanitation.
useful to society
– Nai Heimin as a real estate trading and rental company registered in the industry, but the actual activity as it is today, cash flows and the platform means that the company can be classified as mostly beneficial to society, the mayor explained.
It indicates that it is sufficient that the enterprise or institution aims in its other activities to benefit the municipality, province or state. But there is a limitation in this if the exemption would distort competition with respect to private enterprises.
According to the articles of association, the company must not generate financial profit, and the operation must serve the population. There is little commercial activity, and the activity is mainly run through volunteer work.
The director of the municipality cannot see that the exemption of Nye Heimen AS results in a distortion of competition with regard to private enterprises, since the tax calculated for 2023 is NOK 2152.
– However, it is essential that the main purpose is not to make commercial profit.
– important to society
In its Articles of Association, Nye Heimen As described the use of the surplus which would mainly go to strengthening the service offering and non-profit activities in Otterøya.
According to a letter from the Ministry of Finance dated June 12, 2003, a comprehensive concrete assessment is required, in which one must take into account, among others:
- If the institution/institution performs functions the public sector would have to do otherwise
- If the enterprise/enterprise aims to make a profit
- Whether the institution/institution distributes profits to its members
- Enterprise/institution financing
– The operation of “Heimen” in Otterøya is important to the community in Otterøya and the exemption can be interpreted as being within the scope of the law.
When the application was considered by the Namsos Municipal Council before Easter, it ended with all 37 representatives voting to grant Nye Heimen AS a property tax exemption on the property.
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