Virginia Baptist Homes will file an appeal with the Virginia Supreme Court asking it to reverse a Circuit Court judge's ruling that The Glebe, an upscale Botetourt County retirement community, does not meet state tax-exempt guidelines as a religious or benevolent organization.

"We are optimistic that the Supreme Court will hear our case and confirm what we believe, that the operation of The Glebe is indeed benevolent and religious, and that it is entitled to the exemption granted to Virginia Baptist Homes by the General Assembly," said Randall Robinson, Virginia Baptist Home's president.

Botetourt County officials say The Glebe owes the county more than $250,000 in back taxes and penalties dating to its opening in 2005 in Daleville. It will owe more than $200,000 for the 2007 tax year by the end of the year.

The county sued Virginia Baptist Homes in 2006, arguing that The Glebe is a resort for wealthy retirees and should pay real estate taxes to the county rather than be exempt under guidelines that protect religious and benevolent organizations.

Following a three-day trial in March, Circuit Court Judge Michael Irvine ruled in June that the tax-exempt status granted to Virginia Baptist Homes in 1976 by the Virginia General Assembly does not provide all its property with a tax exemption.

In addition to The Glebe, Virginia Baptist Homes has three other facilities in Newport News, Culpeper and Richmond. All operate on a not-for-profit basis.

The judge ruled that The Glebe fails to satisfy the requirement of being exclusively for religious purposes because it is open to residents regardless of religious beliefs, and its employees are not expected to adhere to any specific religion.

Irvine also rejected Virginia Baptist Homes' argument that The Glebe was a benevolent organization.

Botetourt County Attorney William Heartwell had argued during the trial that The Glebe is not benevolent because it rejects those in poor health with lesser incomes. He referred to six-figure entrance fees in the range of $300,000 and monthly fees for some residents that exceed $4,000.

Virginia Baptist Homes said it had created a benevolent fund and was raising money so that it could offer financial aid to residents in the future.

Irvine ruled that benevolence cannot be based on a future act. He questioned whether The Glebe would be able to offer financial assistance anytime soon, making reference to the $55.5 million in bonds it owes to the Roanoke County Industrial Development Authority to build the facility.

"We are a religious and benevolent organization today. The legislative exemption exists to give you permission" to raise funds to be distributed later in a benevolent manner, Robinson said. "There's no other way to do it."

In 2006, Virginia Baptist Homes distributed more than $800,000 in financial support through its facilities, he said.

Robinson said The Glebe case highlights Virginia's inadequate laws for determining tax-exempt status for nonprofit retirement facilities.

"Do you think that might make it a very good case for the Supreme Court?" he said.

Real estate taxation of continuing-care retirement communities is "all over the board" in Virginia, said Sandee Levin last month, who is president of the Virginia Association of Nonprofit Homes for the Aging.

Among the state's 46 registered continuing care facilities, some pay real estate taxes and some don't, she said.

There's also variability in how local taxing authorities have addressed the issue, Levin said.

Virginia Baptist Homes has until Aug. 9 to file the appeal. Once it is filed, a panel of three Supreme Court judges would then be appointed to determine if the entire court should hear the appeal.

Botetourt County Administrator Jerry Burgess said Monday he had not heard that the appeal would be filed.

"I'm not going to comment on anything that hasn't happened yet," he said. "So, we'll just wait and see if they actually do."