In Re American Legion Post No. 81

Atcheson, J.:

The City of El Dorado has entered into an agreement with American Legion Post No. 81 to acquire the golf course the organization owned and operated there. The American Legion contends the property should be treated as tax exempt because the arrangement for its acquisition is a lease with an option to purchase. The Court of Tax Appeals ruled otherwise and denied the exemption. The American Legion has appealed that determination.

The pertinent facts may be stated in short order. For years, the American Legion owned a golf course within the city limits. Recently, the operation turned…