Geek Group faces tax troubles

KALAMAZOO COUNTY, Mich. (NEWSCHANNEL 3) – One West Michigan non-profit says they're in danger of being taxed out of existence.

The Geek Group has called West Michigan home for years, and says its mission is to bring the excitement of science to anyone who wants to learn. Now the group says an effort to collect back taxes could put a stop to all of that.

Officials with the Geek Group say that being a 501c3 charity gives them tax exempt status, but the group says both Kalamazoo Township and Kalamazoo County want to collect back property taxes from them. Both governments do have the right to collect taxes if they feel a charity organization is not truly exempt, and now they are pitted against each other over whether the Geek Group needs to pay up.

“Out of nowhere we had big orange stickers on our doors all of a sudden,” said Chris Boden of the Geek Group, “and they said basically all your stuff belongs to us and we're going to sell it unless you pay us $50,000.”

Boden says the Geek Group has run purely on donations, that includes all the equipment they use in their experiments and their building, but all that isn't so clear to Kalamazoo Township, which is reviewing their tax status.

“I think this all started as a misunderstanding,” said Dan Ryskamp, attorney for the Geek Group, “because the township didn't understand for a long time what it is the group does. The township especially didn't understand that nobody here was really clear and what their tax responsibilities were.”

The Geek Group has taken their plight public, posting their tax review meeting on YouTube.

Newschannel 3 asked the township for comment on Wednesday and were referred to an attorney who wouldn't comment on the details but did say the group's tax status is under review, and that even though the Geek Group is a federally recognized 501c3 charity, not all charities are exempt from property taxes, something the Geek Group acknowledges.

“Well not all non-profits are tax exempt,” said Boden. “Some surprising ones are, the KKK is a federally certified national non-profit organization of all things.”

“Under Michigan law, they're not all tax exempt,” said Ryskamp, “they do have to fall under the category of being charitable or scientific.”

While the Geek Group says it meets the criteria, the township may not agree, and Boden says that the end could be near for the group.

“We will be taxed out of existence,” said Boden.

The group says it has two weeks to pay, otherwise it will lose everything, but they were told that they are being treated like anyone else with delinquent taxes.