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Facility not predominately used for charitable purposes is taxable

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Despite a claim that labor unions are “inherently” charitable in nature and have historically been granted property tax exemptions, the Indiana Tax Court affirmed that one union’s banquet facility is 100 percent taxable.

In a ruling posted late Thursday in 6787 Steelworkers Hall, Inc. v. John R. Scott, Assessor of Porter County, No. 49T10-0906-TA-27, Tax Court Judge Thomas Fisher affirmed the Indiana Board of Tax Review decision that the union’s banquet facility is not exempt from property taxation.

The Tax Court was asked to decide whether the Indiana Board for Tax Review’s denial of the exemption application was supported by substantial evidence.

Local 6787 owned and operated a banquet facility and a union hall in Portage. In June 2006, Local 6787 filed an exemption application with the Porter County Assessor for an educational-purposes exemption on both of its buildings, the land, and the personal property there. In December 2006, the Porter County Property Tax Assessment Board of Appeals determined that Local 6787’s union hall, the personal property, and the land was exempt from property taxation but the banquet facility was 100 percent taxable. Local 6787 filed a petition for review with the Indiana Board of Tax Review.

The union claimed the banquet facility’s eligibility for an educational/charitable purposes exemption was “obvious.” The union noted that Ivy Tech taught culinary courses – primarily for Local 6787 members – in the facility, and other charitable organizations such as the American Heart Association and the United Way used the facility free-of-charge. Local 6787 also showed a schedule of events and a summary of the facility’s overall usage: it was used 41.67 percent of the time for union-related activities, 44.44 percent of the time for culinary classes, and 13.89 percent of the time for weddings/banquets. It claimed the facility was eligible for an 86.11 percent exemption for 2006.

However, the board concluded the union had not demonstrated that the banquet facility was predominately used for educational/charitable purposes.

The union asserted that the board’s final determination must be reversed because Local 6787 prima facie established that the banquet facility was used 86.11 percent of the time for educational or charitable purposes. The union argued that it demonstrated that both its organizational purposes and uses of the banquet facility were educationally and charitably grounded because, among other things, labor unions are “‘inherently” charitable and have historically been granted property tax exemptions – the union hall had always been exempted from property taxation.

Judge Fisher wrote the union’s claim does not establish that it predominately used its banquet facility for charitable or educational purposes. Also, Local 6787 did not provide any citations to Indiana statutes or caselaw for the proposition that unions are inherently charitable. Because its union hall qualified for a property tax exemption in the past doesn’t mean that its banquet facility should be automatically deemed exempt for the year at issue.

While Local 6787’s bylaws indicate the organization has some charitable or educational intent, such intent does not establish predominate use.

Local 6787’s educational uses of the banquet facility were insufficient to support a finding of predominate use because the facility was used for such activities less than 50 percent of the time for 2006.

Judge Fisher concluded, “The evaluation of whether property is used for educational/charitable purposes is a fact-sensitive inquiry; there are no bright-line tests. See Jamestown Homes, 914 N.E.2d at 15 (citation omitted). Here, the Indiana Board’s final determination indicates that it assigned minimal weight to Local 6787’s arguments because they were not supported by substantial evidence. As the fact finder, it was well within the purview of the Indiana Board to make that determination.”
 

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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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