A battle over property taxes between the town of Peterborough and the MacDowell Colony has moved to court.

The town filed paperwork in Hillsborough County Superior Court on Nov. 10 to have a judge decide the case.

At stake is a $50,000 tax bill - a portion of the colony's total tax bill on its 450-acre compound - and the MacDowell's status as a tax-exempt organization.

The Peterborough artists'colony has argued for months that it's exempt from taxes under New Hampshire laws, saying it's a charitable organization that performs a service of public good.

Historically, the colony's tax-exempt status has been affirmed by Peterborough selectmen, and colony officials say the organization's mission hasn't changed since it was founded in 1907 as a community of artists.

Peterborough selectmen decided otherwise Oct. 25, when they agreed that the colony does not qualify as a charity, and must pay a portion of the property taxes selectmen say it owes to the town.

According to the documents filed with the court, town attorneys Robert Derosier and John Ratigan want the judge to rule that MacDowell is not a charitable organization as defined by state law.

State law says that a charitable organization can't make money from the services it provides, and MacDowell is considered a nonprofit group.

But, an organization must also perform a service of public good to be considered "charitable,"town attorneys said, and this is a criterion MacDowell doesn't meet.

Derosier said MacDowell's services mostly benefit its own members, not the general public.

But MacDowell Resident Director David Macy said the colony affects people far outside its borders.

Artists who stay at the colony produce works such as books, he said, that are read by hundreds of thousands of people.

The organization will be working on a formal response to the town's case over the next month.

Macy said the two sides may meet again in January, and he believes the outcome of the case will have ramifications for charitable organizations in towns across the state.

Peterborough began re-evaluating the tax-exempt status of nonprofit organizations more than a year ago; discussions with the colony began in May.

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