Did you know since 2012 tax payers should have had access to all recreational facilities offered by SHARC in Sunriver Oregon at a nominal fee? A price equivalent to what Juniper Swim & Fitness Center in Bend OR, or any municipal pool, charges.

Since 1995 Sunriver Homeowners Association has held a 501(c)(4) tax-exempt status from the IRS, with the condition that any service available through its recreational facilities must to be provided to the general public at a nominal fee.

Please sign this petition to submit our demand to the Sunriver Homeowners Association Board and to the IRS Exempt Organization Unit, urging them to investigate and ensure Sunriver’s compliance with tax payers’s right to all recreational facilities for a nominal fee.

Your tax dollars are being used to save Sunriver millions per year in taxes, in exchange for a service that should be available to you not at a commercial rate, but for a nominal fee. Your children have a right to enjoy Sunriver’s facilities because your tax dollars fund them.

The Sunriver owners have raised $18M for the development of SHARC, but the only reason they can maintain its costs and operations is because your tax dollars (the general public) contribute significantly, perhaps to the point that it would become inoperable if that weren’t the case. 

Sunriver Bylaws, Section 15 Nonprofit Purpose states that: In order to preserve the income tax exempt status of the Association, neither the Board nor any director may do any act, or authorize or suffer the doing of any act by an officer or employee of the Association, on behalf of the Association which is inconsistent with the Articles or Bylaws or Section 501(c)(4) of the Internal Revenue Code. Any such act shall be all ultra vires and void. https://www.sunriverowners.org/home/showpublisheddocument/312/638428142510600000

On rare occasions, the IRS grants a Homeowners Association 501(c)(4) exempt status, and the conditions for public access to recreational facilities at a nominal fee must be met.

This is not a complicated matter. It is quite simple. To maintain the tax-exempt status, Sunriver needs to make access to the SHARC and any other recreation service available to the general public at a nominal fee.

Sunriver neither agrees nor denies the IRS Private Letter Ruling (PLR 9539005) received from the IRS in 1995 is theirs. We do not doubt that it is and it is in line with 501(c)(4) tax law. 

Private Letter Ruling 9539005 holds that the operation and maintenance of recreational facilities by a homeowners' association organization exempt under IRC Sec. 501 (c)(4) will not cause the association to lose its exempt status if the amount is nominal and is not the core purpose of the organization. However, it will constitute unrelated business income subject to taxation, after the deduction of related expenses https://www.501c4taxexempt.com/additional-tax-citations

Sunriver tax returns are public record and can be found here https://projects.propublica.org/nonprofits/organizations/930782374

In addition to its exempt income tax benefit, Sunriver receives property tax exemption on all property it owns or leases from and to a for profit entity.

Anyone is welcome to sign this petition!

Deschutes County residents are strongly encouraged to sign it. Take this to a CPA (if you need to) who understands tax-exempt law, preferably someone outside of Deschutes, and avoid the CPA who filed Sunriver tax returns, Price, Fronk & Co. A complaint was submitted to the Board of Accountancy in 2019 against the firm and was rejected without a reason provided. Candice Fronk was the Chair of the Board Of Accountancy at that time. This will cost you less than a few entrances at the SHARC. Do this for your family.

Sunriver residents are strongly encouraged to sign it. The commercial rate of $25-$30 entry fee at the SHARC is the only justifiable reason for the expensive Recreation Plus Pass Program, but we understand if some members want this to be exclusive, despite it being ilegal.

A significant number of inquiries into this matter will hopefully incentivize the IRS Exempt Organization Unit to investigate. 

（𝑇ℎ𝑖𝑠 𝑝𝑒𝑡𝑖𝑡𝑖𝑜𝑛 𝑖𝑠 𝑓𝑜𝑟 𝑆𝑢𝑛𝑟𝑖𝑣𝑒𝑟 𝐻𝑜𝑚𝑒𝑜𝑤𝑛𝑒𝑟𝑠 𝐴𝑠𝑠𝑜𝑐𝑖𝑎𝑡𝑖𝑜𝑛，𝑡𝑜 𝑛𝑜𝑡 𝑏𝑒 𝑐𝑜𝑛𝑓𝑢𝑠𝑒𝑑 𝑤𝑖𝑡ℎ 𝑆𝑢𝑛𝑟𝑖𝑣𝑒𝑟 𝑅𝑒𝑠𝑜𝑟𝑡）

Thank you.

Note: If you want to see what questions and comments residents of Sunriver, Lapine, DRRH, Skypark Meadows have please go to https://nextdoor.com/p/H5z5DDmtTM-x?utm_source=share&extras=MjA1NzI5MzA%3D&utm_campaign=1715688901788

There are over 100 comments and discussions on this petition.