How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask N Cal Attorney Your Own Question

N Cal Attorney
N Cal Attorney, Lawyer
Category: Real Estate Law
Satisfied Customers: 8418
Experience:  Since 1983
9653905
Type Your Real Estate Law Question Here...
N Cal Attorney is online now
A new question is answered every 9 seconds

There is a water irrigation district that files taxes with

Resolved Question:

There is a water irrigation district that files taxes with IRS as a
501-C-12 is identified on the Secretary of State's website as a 501c_12
501- c-12 IRS guidelines say one member one vote to elect a Board.

But the bylaws say one share one vote and the Board has the most shares so
they get all the water and control the votes. Smaller users are not
included in decisions.
Just yesterday they filed a law issue against the local water master to
get more water in their canal supplying their storage lake. The Board
members benefit as they irrigate from that canal.

Majority of unserved users want to know how to get rid of the Board.

They are afraid of tax liability current Board has caused by
misrepresenting tax returns.

Jeff
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  N Cal Attorney replied 2 years ago.
I'm sorry to hear this.

Where is the water district located?
Customer: replied 2 years ago.


lassen county


 

Expert:  N Cal Attorney replied 2 years ago.
I do not have time to research this until later tonight.

If that is OK, just wait. If that is not OK, you can opt me out and let another Expert take over.
Customer: replied 2 years ago.


ok

Expert:  N Cal Attorney replied 2 years ago.
Thank you for your patience.

Your contention is supported by the IRS Manual:

7.25.12.5 (08-09-2006)
Requirements for Mutual Ditch, Irrigation, Cooperative Telephone or Electric Companies, and "Like Organizations"

Ditch and irrigation companies, telephone companies, electric companies, and "like organizations" that seek exemption under IRC 501(c)(12) must be organized and operated as mutual or cooperative organizations. The terms "mutual" and "cooperative" have no legal distinction for purposes of section 501(c)(12). The U.S. Tax Court defined "cooperative" as follows:
"A cooperative is an organization established by individuals to provide themselves with goods and services or to produce and dispose of the products of their labor. The means of production and distribution are those owned in common and the earnings revert to the members, not on the basis of their investment in the enterprise, but in proportion to their patronage or personal participation in it."
Puget Sound Plywood, Inc. v. Commissioner , 44 T.C. 305 (1966), acq. 1966-2 C.B. 6.

The court described the organizational and operational cooperative principles as follows:

Democratic Control. The organization must periodically hold democratically conducted meetings with members. Election of officers must be on a one member, one vote basis. Meetings must have a quorum of members in attendance or voting by proxy.
///

Do you have a copy of the bylaws that you can show me?

I could do more research if I had the name of the irrigation district.
Customer: replied 2 years ago.

Any idea of what move to make next? How to get rid of this in control Board with all the votes?

Expert:  N Cal Attorney replied 2 years ago.

Is this a private or a public body?

 

There are a lot of statutes pertaining to specific irrigation districts and it would help if you would tell me the name of the district, assuming it is a public body.

 

How long have those bylaws been in force?

Customer: replied 2 years ago.


it's a 501-c-12 they file taxes as such. Aa private water district. Bylaws for a long time have been shares, one per acre. latered altered so shares could be sold and moved.

Expert:  N Cal Attorney replied 2 years ago.
It it one of the Districts mentioned at
http://leginfo.ca.gov/cgi-bin/displaycode?section=wat&group=20001-21000&file=20510-20543

Do the bylaws provide for a recall election of Directors?
Customer: replied 2 years ago.

it's not in the water code sectionsunless I mis-read. it's lassen irrigation company often referred to as LIC.


will check bylaws for re-call clause.


 


thanks!

Expert:  N Cal Attorney replied 2 years ago.
Please let me know what the by-laws say about that.

Leavitt v. Lassen Irrigation Company (1909) 157 Cal. 82 states:
The fundamental and all important proposition then is this, that a public service water company which is appropriating water under the constitution of 1879, for purposes of rental, distribution, and sale, cannot confer upon a consumer any preferential right to the use of any part of its water.

Is that what the company has been doing?
Customer: replied 2 years ago.

Attachment: 2013-04-27_225251_bylaws_1992_copy_paste_from_records.docx


why yes! You found something we had no clue about.

 

Expert:  N Cal Attorney replied 2 years ago.

I am sorry but my software can read doc but not docx files.

There are several ways to approach this problem. One is to ask the Board to change the voting rules to comply with the IRS rules or face penalties from IRS once this s reported to IRS. Another would be to try to recall the entire Board.

I cannot recommend a specific course of action.

You can get a free consultation from some of the local land use attorneys listed by location at
http://lawyers.findlaw.com/lawyer/practicestatecounty/Land-Use-&-Zoning/California/Lassen

I urge you to follow up on this with a local attorney who can read the relevant documents and advise you in confidence.

I hope this information is helpful.

N Cal Attorney, Lawyer
Category: Real Estate Law
Satisfied Customers: 8418
Experience: Since 1983
N Cal Attorney and 3 other Real Estate Law Specialists are ready to help you
Customer: replied 2 years ago.


thanks, XXXXX XXXXX You confirm what few things I had found .

Expert:  N Cal Attorney replied 2 years ago.
Thank you for the Excellent rating, and thank you very much for the bonus!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Tina

    Lawyer

    Satisfied Customers:

    5390
    17 years of legal experience including real estate law.
< Last | Next >
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    5390
    17 years of legal experience including real estate law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Lawyer

    Satisfied Customers:

    6607
    14 years real estate, Realtor. Landlord 24+ years
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry Esquire's Avatar

    Dimitry Esquire

    Attorney

    Satisfied Customers:

    5178
    JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
  • http://ww2.justanswer.com/uploads/LA/LawTalk/2012-6-6_17379_LawTalk.64x64.JPG LawTalk's Avatar

    LawTalk

    Attorney

    Satisfied Customers:

    4883
    I have 30 years legal experience. Additionally, in CA I held a Real Estate Broker's license.
  • http://ww2.justanswer.com/uploads/RA/rayanswers/2012-6-7_23346_Untitled1.64x64.jpg Ray's Avatar

    Ray

    Lawyer

    Satisfied Customers:

    4820
    Texas Attorney for 29 years dealing in real estate
  • http://ww2.justanswer.com/uploads/RA/ratioscripta/2012-6-13_2955_foto3.64x64.jpg Ely's Avatar

    Ely

    Counselor at Law

    Satisfied Customers:

    3073
    Qualified attorney in private practice including business, family, criminal, and real estate issues.
  • http://ww2.justanswer.com/uploads/PH/philip.simmons/2012-6-7_161915_BIGPhilipSimmons.64x64.jpg P. Simmons's Avatar

    P. Simmons

    Lawyer

    Satisfied Customers:

    2574
    12+ yrs. of experience including real estate law.
 
 
 

Related Real Estate Law Questions

Chat Now With A Real Estate Lawyer
N Cal Attorney
N Cal Attorney
1451 Satisfied Customers
Since 1983