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High court reverses tax decision

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An owner of leased property must prove it possesses an exempt purpose separate and distinct from the exempt purpose of its lessee to be entitled to statutory exemption, ruled the Indiana Supreme Court in a decision reversing the Indiana Tax Court.

The justices held in Hamilton County Property Tax Assessment Board of Appeals & Hamilton County Assessor v. Oaken Bucket Partners, LLC, No. 49S10-1003-TA-140, just charging below market rent for part of a building rented to a church is insufficient to justify a religious and charitable purpose property tax exemption.

Oaken Bucket filed an exemption application with the Hamilton County Property Tax Assessment Board of Appeals seeking a charitable and religious purposes exemption on the portion of its building that it leased to Heartland Church Inc. The county board denied the application. Oaken Bucket claimed to charge the church below market-value rent, a fact the county board disputed before the Indiana Board of Tax Review when Oaken Bucket appealed the earlier decision. The Indiana Board of Tax Review affirmed the county board’s decision. Oaken Bucket appealed again and the Tax Court reversed, reasoning there was insufficient evidence supporting the state board’s decision.

Even assuming Oaken Bucket charged below market-rate rent to the church, that fact alone has little bearing on the question of whether Oaken Bucket possessed its own exempt purposes.

“Stated somewhat differently, where an entity charges below market rent to a charitable or religious organization, this may demonstrate some indicia of the entity’s beneficent motives. But more is required to show that the entity possesses its own exempt purposes,” wrote Justice Robert Rucker.

Heartland is a nonprofit and possesses an exempt purpose in its own right, but besides arguing that it charges the church below market-rate rent, Oaken Bucket hasn’t shown an exempt purpose separate from that of the church.

“At most what Oaken Bucket has proven is that it leased and primarily used its property for religious and charitable purposes. This is laudable. But in order to qualify for an exemption the property, among other things, must be ‘owned’ for religious and charitable purposes,” wrote the justice.  “And absent evidence that an owner of leased property possesses an exempt purpose separate and distinct from the exempt purpose of its lessee, the owner holds the property for its own benefit, not that of the public, and thus its property is not entitled to the statutory exemption.”
 

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  1. It appears the police and prosecutors are allowed to change the rules halfway through the game to suit themselves. I am surprised that the congress has not yet eliminated the right to a trial in cases involving any type of forensic evidence. That would suit their foolish law and order police state views. I say we eliminate the statute of limitations for crimes committed by members of congress and other government employees. Of course they would never do that. They are all corrupt cowards!!!

  2. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  3. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  4. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  5. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

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