Granite State Fair prevails over Rochester in NH Supreme Court, will pay no city taxes
ROCHESTER — The Granite State Fair will no longer pay taxes to the city after prevailing in the New Hampshire Supreme Court, which ruled against an appeal the city filed last year.
The high court upheld a ruling by the New Hampshire Board of Tax and Land Appeals stating the Rochester Agricultural and Mechanical Association, the governing board for the Granite State Fair (formerly the Rochester Fair) has charitable tax exemption due to its nonprofit status and is not required to pay the city taxes on the 68-acre property at 72 Lafayette Road. The fair dates back to 1874.
City Manager Blaine Cox said there are no further steps for the city to take.
Cox said RAMA has been paying taxes on the property but will not pay any longer. Rochester tax collector Doreen Jones said the 2022 tax bill for the property was $23,106.
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The court ruled the city had not met its burden on appeal.
Ruling awaited on fair's lawsuit against city over car racing events
Cox also noted the other case before the high court, regarding whether RAMA can hold events such as car racing outside of the two-week period of the fair each fall, is still pending.
RAMA filed a separate lawsuit in May 2022, making the case it has the right to hold auto racing and other events at the fairgrounds and should be exempt from needing annual city approval because the events had been allowed in the past. The racing event is in addition to activities run during the more than a century-old annual fair. Organizers called the auto racing and other activities a way to raise funds to help support the fair.
Supreme Court upholds RAMA is charitable organization
In its ruling, the state Board of Tax and Land Appeals noted the fairgrounds was established under Chapter 152 of the General Laws of New Hampshire authorizing voluntary corporations engaged in, among other things, “agricultural, educational, or charitable purposes.” Under its 1879 articles of incorporation, RAMA’s stated purpose was “to improve and stimulate agricultural and mechanical skill” as well as to purchase and make improvements to property.
When RAMA organized the annual Rochester Fair in 1984, it filed restated articles of incorporation to provide that RAMA is empowered to transact any and all lawful business for which corporations may be incorporated under RSA 293-A,” while reiterating that RAMA’s principal purpose is to improve and stimulate agricultural and mechanical skills.
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In the appeal, the city argued that RAMA is not established as a charitable organization, and that organizing the Rochester Fair does not constitute a charitable function.
The court disagreed, noting RAMA’s purpose is consistent with educational purposes previously recognized as charitable and said the city had not met its burden of showing, by a preponderance of the evidence, that the Board of Tax and Land Appeals' finding RAMA is established as a charitable organization is unjust or unreasonable.RAMA is classified as a tax-exempt organization by the Internal Revenue Service as well as in its registration with the Charitable Trusts Unit of the New Hampshire attorney general’s office.
This article originally appeared on Fosters Daily Democrat: Granite State Fair wins in court, will pay Rochester NH no taxes
