New London ― For more than a century, the local post of the Veterans of Foreign Wars, a national nonprofit organization, has provided veterans with resources, counseling and a place to gather.

But in 2021, Post 189 did not file the tax form with the city assessor that it required to submit every four years to maintain the tax-exempt status for its110 Garfield Avenue property. That meant the post was placed on the list of the city’s taxable properties last year.

The post has regained its exemption status but still has unpaid tax bills from the year it was not exempt. Last month, the post was labeled delinquent in unpaid taxes and is now left with having to pay the $9,889.63 in taxes over the next several years, or lose its building to the city.

Several members of the post raised the issue during public comment at the City Council meeting this week. Post members and their relatives asked the council to consider rescinding the tax bill saying its prior leaders failed to file the form.

“I’m here to ask for forgiveness for an error I did not make but take full responsibility for as Post 189’s elected commander,” said Felix Santana III.

The councilors, most of them stating this was their first time hearing about the issue, lamented the situation but informed the post it does not have the authority to waive property taxes.

Not the first time

The council was in a similar situation two months ago when the owners of a church building on Montauk Avenue asked for tax forgiveness. The church owed $22,504 after its tax-exemption was revoked last year after not filing the same form.

Joe Paskewich, the pastor at Calvary Chapel, shares the building with the owners and others. Representing the Portuguese-speaking owners, Paskewich during meetings said religious organizations are not listed in the tax-exempt application as organizations that need to re-file this form after its initial submission.

City Assessor Donna Ralston at the time said most tax-exempt properties have to file the form every four years. She said a church does not fall under this requirement unless it changes its use or leases a portion of the church to a non-exempt organization.

She argued her office had reason to believe the church stopped using the building for religious purposes.

The council, much like now, did not have the ability to rescind the taxes, only enter into a payment agreement, and referred the matter to the mayor’s office.

Ralston this week said the church proved the building’s continued use for church activities, and after many meetings with Paskewich, the owners filed and signed an affidavit of facts and the exemption was ultimately granted.

How did the post get here?

Ralston said if an organization, such as the VFW, wants to maintain its tax exempt status, it is its responsibility to file the required forms. After the post did not file the form by November of 2021, she said her office clerk contacted the post and was told by someone the property was being sold and it wouldn’t be filing.

The VFW post also did not appeal its taxes within the statutory required time to the Board of Assessment Appeals. If an appeal had been rejected, the decision could have been further appealed to Superior Court.

Santana said the post was never informed about the appeal process in meetings with the assessor or mayor last year.

At the city meeting Monday, Santana said he joined the post 10 years after returning from overseas deployment and was not an active member. He said the post was on the verge of being shut down two years ago when he decided to lead it.

Santana on Wednesday said the previous leaders abandoned the post and left it to fail while the state chapter was going to shut down the post due to the lack of leadership at the time. He added some people tried to keep it going and people were put in roles they were not active in or understood.

It was during this time that he said the miscommunication happened and the form was not filed with the city.

Santana said he became aware of the situation after he took over and the first bill came in the spring of 2022. He said a post member went to the city thinking the bill was an error, but after understanding the situation, the post tried to find a solution.

Santana said he met with Mayor Michael Passero last October but Passero said he couldn’t help. Santana said he also got in contact with U.S. Sen. Chris Murphy’s office which offered to help find a solution.

He said a second bill was sent to the post in January. After the unpaid bill was sent to collections, Santana said the post received a letter on Feb. 23 saying it was being sued by the city and a lien could be put on the property if $9,073.06 in taxes were not paid. The amount has now increased with interest.

Payment plan is the only option

Santana said Murphy’s office got in touch with the mayor’s office to work on a payment plan. Prior to the Monday meeting, Santana agreed to paying the taxes over seven years.

At the meeting, Passero brought up the payment agreement which he had planned to present to the council at its next meeting on March 20. The City Council will vote on whether to authorize the agreement. He said the city’s legal action would then be withdrawn.

Santana Wednesday said the post is still looking for forgiveness, and that’s why it made an attempt with the council Monday, but if it has to pay the bill, it will pay the bill. He said he planned on starting a GoFundMe page.

Santana said the VFW post is in a better position than it was two years ago. He cooks $8 meals every Tuesdays and Thursdays, open to anyone in the community. He said there are 104 members, including those in retirement homes and disabled. The post has about 20 active members and Santana is aiming to grow that number.

Passero in an email Wednesday said the VFW post owed the city $9,889.63 with interest and not including the collections fees from the attorney’s office.

Passero said the taxes owed cannot be waived at this point, and state law does not give the municipality that authority. He said fortunately, the city is permitted to enter into a payment plan that can stop the interest from accruing and spread the plan out over time.

“This is not an uncommon situation,” he said.

j.vazquez@theday.com