Cumberland Times-News

Local News

December 12, 2013

Service club’s donations take tax hit, delegation asked to help

CUMBERLAND — Money raised for charity by a student service club at Allegany College of Maryland is taxed by the state of Maryland, depriving worthy causes of hundreds of dollars each year raised by the membership’s hard work.

Club members are now asking the District 1 legislative delegation to help them with tax relief. The state requires payment of the 6 percent sales tax on items resold to raise money for charity.

 The Peace Studies Club has donated funds to the Union Rescue Mission, Toys for Happiness, organizations helping veterans returning from war, Doctors Without Borders, the Ark of Hope animal rescue and Haiti relief. Last year, though, those charities were deprived about $500, which went to pay Maryland taxes, students said.

“All the money we raise goes to charity,” said Ariana Stirrup, a member of the club. No funds raised are used for administration or to throw pizza parties and the like, Stirrup said. This semester, funds are being used to combat hunger.

The three students representing the organization were Stirrup, Fatu Siaka and Shinaya Prince. One example of the problem was outlined by students who, like many organizations, resell products to raise money. “The PSC buys coffee for a discounted price and we then sell the coffee at market value. ... All of the money ... made as profit is then redistributed” to charities, students said in a letter to the delegation.

Students said they hope a change in the tax rules would help all student service organizations raising money for charity.

Club members asked the delegation to intervene at the legislator’s pre-General Assembly session meeting Monday night at Allegany College of Maryland. The District 1 legislative delegation is made up of Sen. George Edwards and delegates Wendell Beitzel, Kevin Kelly and LeRoy Myers Jr.

Delegation members were supportive of the request and Kelly asked students to provide an updated list of the charities they have raised money for and prepare a letter to Maryland Comptroller Peter Franchot which the delegation could work from in developing an additional letter of support for the students’ request. The delegation will likely ask state tax officials if the matter can be resolved, possibly by an exception without legislation, or if fixing the problem would require changes in the current law.

Club members made a similar request last year, which the delegation forwarded to Franchot with a cover letter supporting the request. Club members said they’d heard nothing back from the comptroller’s office.

Matthew Bieniek can be contacted at mbieniek@times-news.com.

1
Text Only
Local News
  • Kona Ice owners dole out treats, give back to the community Kona Ice owners dole out treats, give back to the community

    CUMBERLAND — In addition to serving tasty treats and putting a smile on patrons’ faces, Oakland residents Wheeler Stewart and Jeff Orr, owners/operators of Kona Ice Mountain Maryland, do their part to give back to Allegany and Garrett counties. The number one theme of Kona Ice is that if you give it back, it’s going to come back to you, said Stewart.

    July 23, 2014 1 Photo

  • Advocates call for expansion of summer lunch program

    CUMBERLAND — It’s the first year that St. John’s Lutheran Church on Arch Street has participated in the summer lunch program for children. The Rev. Tormod Svensson, the pastor at the church, said that while the church has offered food programs before, this is the first time they’ve been officially part of the Summer Food Service Program.

    July 23, 2014

  • Two face additional charges in child’s death

    MOOREFIELD, W.Va. — West Virginia State Police have served arrest warrants on Joseph A. Christy and Summer L. McDaniel in the case of their 26-day-old infant’s death.

    July 23, 2014

  • Helping others Helping others

    July 23, 2014 1 Photo

  • Commissioners set to vote on plan

    CUMBERLAND — Allegany County commissioners are scheduled Thursday to vote on the 266-page, 2014 Allegany County Comprehensive Plan. The portion of the plan that has stirred some controversy is the inclusion of the Terrapin Run Development. If commissioners approve the plan, the development will be an official part of the county’s land use development plan for the future.

    July 23, 2014

  • Iron Rail Street fire Faulty electrical outlet sparks Mount Savage fire

    MOUNT SAVAGE — Tuesday’s fire that caused an estimated $30,000 property loss in a residence on Iron Rail Street has been determined to be accidental, according to the Maryland State Fire Marshal’s Office.

    July 23, 2014 1 Photo

  • In Brief - 07/24

    July 23, 2014

  • Frostburg to use ARC grant for Braddock Road improvements

    FROSTBURG — The city of Frostburg will use a $1.275 million federal grant to improve access to a 25-plus acre site that is available for commercial and industrial development, according to an announcement by U.S. Sens. Ben Cardin and Barbara Mikulski.

    July 23, 2014

  • Shooting suspects arrested at Altoona mall

    July 23, 2014

  • Firefighters Union wants county paramedics to unionize

    July 23, 2014