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Apartment creates issue of first impression

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In an issue of first impression, the Indiana Tax Court decided housing owned by a non-profit that receives governmental subsidies to rent to low- and moderate-income people at below-market rates is not property used for a charitable purpose.

At issue in Jamestown Homes of Mishawaka, Inc. v. St. Joseph County Assessor,  No. 49T10-0802-TA-17, is whether the Indiana Board of Tax Review erred in denying Jamestown Homes a property tax exemption for the 2005 tax year by ruling Jamestown's apartment complex didn't qualify for the charitable purposes exemption provided in Indiana Code Section 6-1.1-10-16.

Jamestown is a non-profit corporation formed in 1965 to provide housing based on Section 221(d)(3) of Title II of the National Housing Act. Under the program, the federal government insured and subsidized low-interest loans to private developers that agreed to rent to people at certain income levels and charge rents that would cover operating costs and debt service only. Jamestown was also allowed to evict tenants who don't pay rent and charge late fees and security deposits.

The apartments were built in 1970, but Jamestown didn't apply for the property tax exemption until the 2005 tax year. The St. Joseph County Property Tax Assessment Board of Appeals denied the application; the Indiana Board of Tax Review affirmed. The board found Jamestown's apartments weren't rented to low- and moderate-income people for any kind of charitable purpose but because it was a condition of its agreement with the federal government. It also ruled the government was shouldering the financial burden of providing the low-cost housing.

On appeal, Jamestown argued it met the burden of proving its property is entitled to the tax exemption, saying it performed a service that the federal, state, and local government would have an obligation to do if it weren't for Jamestown. It also provides affordable housing with no expectation of financial gain.

Because this is an issue of first impression in Indiana, Judge Thomas Fisher looked to other courts for their rulings and adopted the reasoning provided in the New Mexico case Mountain View Homes, Inc. v. State Tax Commission, 427 P.2d 13 (N.M. 1967). That case was based on a similar situation and exemption provision as in the instant case.

Using the ruling from Mountain View, the Indiana Tax Court affirmed the Indiana Tax Review Board's final decision. There's no evidence any welfare clients live in Jamestown's apartments nor is there evidence tenants can continue to live there when they can't pay their rent, wrote Judge Fisher. There's no evidence Jamestown provided good fellowship intended to improve the spirits of its tenants nor is there evidence showing Jamestown has lessened the burden of government in meeting the need for affordable housing. That need is ultimately being met by the government through its mortgage insurance and interest subsidy, wrote the judge.

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  1. A traditional parade of attorneys? Really Evansville? Y'all need to get out more. When is the traditional parade of notaries? Nurses? Sanitation workers? Pole dancers? I gotta wonder, do throngs of admiring citizens gather to laud these marching servants of the constitution? "Show us your billing records!!!" Hoping some video gets posted. Ours is not a narcissistic profession by any chance, is it? Nah .....

  2. My previous comment not an aside at court. I agree with smith. Good call. Just thought posting here a bit on the if it bleeds it leads side. Most attorneys need to think of last lines of story above.

  3. Hello everyone I'm Gina and I'm here for the exact same thing you are. I have the wonderful joy of waking up every morning to my heart being pulled out and sheer terror of what DCS is going to Throw at me and my family today.Let me start from the !bebeginning.My daughter lost all rights to her 3beautiful children due to Severe mental issues she no longer lives in our state and has cut all ties.DCS led her to belive that once she done signed over her right the babies would be with their family. We have faught screamed begged and anything else we could possibly due I hired a lawyer five grand down the drain.You know all I want is my babies home.I've done everything they have even asked me to do.Now their saying I can't see my grandchildren cause I'M on a prescription for paipain.I have a very rare blood disease it causes cellulitis a form of blood poisoning to stay dormant in my tissues and nervous system it also causes a ,blood clotting disorder.even with the two blood thinners I'm on I still Continue to develop them them also.DCS knows about my illness and still they refuse to let me see my grandchildren. I Love and miss them so much Please can anyone help Us my grandchildren and I they should be worrying about what toy there going to play with but instead there worrying about if there ever coming home again.THANK YOU DCS FOR ALL YOU'VE DONE. ( And if anyone at all has any ideals or knows who can help. Please contact (765)960~5096.only serious callers

  4. He must be a Rethuglican, for if from the other side of the aisle such acts would be merely personal and thus not something that attaches to his professional life. AND ... gotta love this ... oh, and on top of talking dirty on the phone, he also, as an aside, guess we should mention, might be important, not sure, but .... "In addition to these allegations, Keaton was accused of failing to file an appeal after he collected advance payment from a client seeking to challenge a ruling that the client repay benefits because of unreported income." rimshot

  5. I am not a fan of some of the 8.4 discipline we have seen for private conduct-- but this was so egregious and abusive and had so many points of bad conduct relates to the law and the lawyer's status as a lawyer that it is clearly a proper and just disbarment. A truly despicable account of bad acts showing unfit character to practice law. I applaud the outcome.

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