RUMFORD – Assessors are expected to set a public hearing within the next couple of weeks on real estate and personal property taxes owed by Black Mountain of Maine to the town.

The Black Mountain board wants an abatement of past taxes, and an exemption of future real estate and personal property taxes.

The decision to call a public hearing was made after a meeting early Tuesday evening of the assessors board, its lawyer, William Dale of Portland, three members of the Black Mountain board, and James N. Katsiaficas, an attorney for Maine Winter Sports Center. Maine Winter Sports Center owns Black Mountain.

At issue is whether Black Mountain is a for-profit or nonprofit business. The town considers it a for-profit business, while federal and state tax services consider it a nonprofit.

Mike Burke, treasurer for the Black Mountain board, said the ski area has federal 501(c)(3) nonprofit status.

Assessors have considered the small family ski area a resort since it was purchased by Maine Winter Sports Center several years ago. Prior to the change of ownership from the Greater Rumford Community Center, the ski area was not taxed.

Roger Arsenault, chairman of the Black Mountain board, said the organization has gathered significantly more data to prove that the status should be nonprofit, and therefore not taxed by the town.

The mountain, the new lodge, land and equipment is valued at a little more than $2 million. About $36,000 is owed from tax year 2005-2006, and about $7,000 remains from tax year 2004-2005. Taxes for 2006-2007 have not been set.

Tax assessor agent Jeri Linn Geronda said a lien would be placed on the mountain in March if the remaining $7,000 from 2004-2005 is not paid by March 1. Arsenault assured her and the board that that amount will be paid.

The request for the abatement would cover earlier taxes owed by the ski area.

Black Mountain board member Dan Mawhinney said other properties owned by Maine Winter Sports have tax-exempt status. He said Maine Winter Sports bought Black Mountain and invested a large amount of money in its improvement.

The ski area operation is the responsibility of the Black Mountain board and its volunteers.

Burke said that although the operating budget has been slashed during the past couple of years, the mountain is still about $12,000 in the red. This year’s budget is about $490,000. Volunteers often do the work that was once done by employees.

“The revenue doesn’t come close to covering our costs,” Arsenault said.

When asked why the Black Mountain board didn’t appeal a decision to continue taxing the ski area as a for-profit company a couple of years ago, or go to selectmen for an abatement request, Mawhinney said the board felt it was the right thing to do to go before the assessors with additional information.

Arsenault added, “We all work in this community. We wanted to come here.”

Dale also asked about money the Black Mountain board receives for renting the lodge for weddings and other functions, and said the board should apply for equipment tax reimbursement under the state’s business equipment tax reimbursement program.

A decision on an abatement or exemptions will be made no earlier than the March meeting of assessors.