That brilliant bunch at Ark Encounter have stepped in it this time.
We believe that your client is aware that they may not be eligible for state tax incentives if the Ark Project is owned by a non-profit legal entity. Answers in Genesis, the parent company of Crosswater Canyon, Inc., and Ark Encounter, LLC clearly states on its website: “The for-profit LLC structure also allows the Ark Encounter to be eligible for various economic development incentives that would not have been available with a non-profit structure.”
Furthermore, as a the Tourism Development Agreement is between the Commonwealth and Ark Encounter, LLC, not Crosswater Canyon, LLC, the current owner, please be advised that no further incentives may accrue from sales tax imposed on sales generated by or arising at the tourism development project, as of the date of transfer of the property, June 28, 2017.
Short version: Ark Encounter transferred its property to a non-profit in order to evade ticket taxes to support fire and police protection for tourist attractions — and screwed themselves out of $18-million worth of tax abatements.
Not a smart move for a facility that’s having difficulty attracting visitors in the first place.
By the way, subsidies for religion and religious institutions are undoubtedly unconstitutional, and need to end. Let’s all hope this debacle helps more of the public see what a dishonest business the clergy actually operate.