PETERBOROUGH – While the MacDowell Colony celebrates its 100th anniversary this year, a Hillsborough County Superior Court judge has given the artists' residence another reason to cheer.

On March 1, Judge Gillian L. Abramson ruled in favor of the MacDowell Colony over the town of Peterborough, affirming that the colony deserves to be treated as a charitable organization and taxed accordingly. The ruling will save the colony nearly $150,000 per year in taxes.

The colony was founded in 1907 by Marian MacDowell, wife of famed American composer Edward MacDowell and has hosted thousands of artists in the 100 years since. The artists, called fellows, including the likes of Thornton Wilder, Michael Chabon and Alice Sebold, reside in private studios strewn across the 450-acre estate for up to eight weeks at a stretch.

In 2005, due to budget shortfalls, the Peterborough Board of Selectmen began a careful review of all organizations that requested a charitable exemption for their property tax to determine if the law was being applied correctly. The board determined that the MacDowell Colony did not meet their definition of a charity.

The selectmen voted to tax the colony, offering to accept a smaller payment from MacDowell in lieu of the full assessment, but the colony refused the offer.

The town brought the case to Superior Court and, last week, Abramson found in favor of the colony, stating that the town's contention that the colony does not provide benefits to the general public was inaccurate.

"Without Thornton Wilder's residence at MacDowell, the world would not know the towns of New Hampshire's Mount Monadnock Region, including Peterborough, as reflected in 'Our Town,' Abramson wrote.

"Charitable institutions, such as MacDowell, that are aimed towards enabling artist to significantly contribute to the well-being of our society should be supported, not discouraged," Abramson said.

The judge also pointed out that the MacDowell Colony had always been afforded a charitable exemption from property taxes and nothing substantive had changed in the operations of the colony to make the exemption no longer applicable.

"The fact that the town consistently granted MacDowell a charitable tax exemption until 2004 undermines the town's assertion that MacDowell is not a charitable organization," Abramson said.

The MacDowell Colony is celebrating Abramson's decision.

"Today Hillsborough Superior Court affirmed that The MacDowell Colony, by serving the arts, qualifies as a charitable organization under New Hampshire law," said a statement from the colony.

"The arts are critical to the well-being of the public, and we believe the fertile and supportive environment of the state of New Hampshire has allowed MacDowell to contribute to that well-being since 1907."

Meanwhile, the town of Peterborough is considering an appeal to the state Supreme Court.

"While the town respects the Superior Court's decision, it is disappointed with its conclusion," said a press release from town officials.

"Accordingly, the town will be reviewing with its legal counsel an appeal to the New Hampshire Supreme Court."

Under New Hampshire law, the appeal must be filed within 30 days, the town said.