Final Clubs Appeal Tax Rate

Cambridge and Harvard's final clubs are still at odds over the city's decision to almost double the tax rates of the nine exclusive, all-male social organizations.

The higher tax rates are a result of the city's decision to treat the final clubs as commercial rather than residential property.

Residences?

The city's assessment raises the tax rate the clubs pay on their properties from approximately $16, the residential rate, to the more than $35 commercial rate, and has already caused some clubs to fall behind in their tax payments.

Sigma Delta Fox

A 1981 state law allowed cities to institute such a dual tax rate for commercial and residential properties. But the law also provided a loophole exempting fraternities and sororities.

The clubs are appealing their assessment to the State Appelate Tax Board, where they will argue that the clubs should be classified as residential properties because of the exemption for fraternities and sororities, said Arnold Bloom, the chief attorney for the clubs.

But the city has argued that the clubs are, by legal definition, commercial properties because no one lives in the buildings.

Delayed

The case was originally scheduled to go before the Tax Board in June but has been rescheduled until October because the city and the final clubs have not determined whether the cases should be tried separately or together, Bloom said.

The issue will be decided over the issue of whether the clubs fall under the fraternities loophole, Bloom said, and therefore one case is all that is necessary.

Edward Cuningham, the attorney for the city in this issue, could not be reached for comment yesterday.

In Debt

Meanwhile some clubs owe money to the city because they have refused to pay the higher tax rate or are unable to. One such club, the Fox, has entered into an agreement with the city to slowly pay back their taxes, said Jane Pitt, attorney for the club.

State law requires taxpayers to pay their taxes even while legal questions remain unresolved.