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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. How nice, on the day of my car accident on the way to work at the Indiana Supreme Court. Unlike the others, I did not steal any money or do ANYTHING unethical whatsoever. I am suing the Indiana Supreme Court and appealed the failure of the district court in SDIN to protect me. I am suing the federal judge because she failed to protect me and her abandonment of jurisdiction leaves her open to lawsuits because she stripped herself of immunity. I am a candidate for Indiana Supreme Court justice, and they imposed just enough sanction so that I am made ineligible. I am asking the 7th Circuit to remove all of them and appoint me as the new Chief Justice of Indiana. That's what they get for dishonoring my sacrifice and and violating the ADA in about 50 different ways.

  2. Can anyone please help this mother and child? We can all discuss the mother's rights, child's rights when this court only considered the father's rights. It is actually scarey to think a man like this even being a father period with custody of this child. I don't believe any of his other children would have anything good to say about him being their father! How many people are afraid to say anything or try to help because they are afraid of Carl. He's a bully and that his how he gets his way. Please someone help this mother and child. There has to be someone that has the heart and the means to help this family.

  3. I enrolled America's 1st tax-free Health Savings Account (HSA) so you can trust me. I bet 1/3 of my clients were lawyers because they love tax-free deposits, growth and withdrawals or total tax freedom. Most of the time (always) these clients are uninformed about insurance law. Employer-based health insurance is simple if you read the policy. It says, Employers (lawyers) and employees who are working 30-hours-per-week are ELIGIBLE for insurance. Then I show the lawyer the TERMINATION clause which states: When you are no longer ELIGIBLE! Then I ask a closing question (sales term) to the lawyer which is, "If you have a stroke or cancer and become too sick to work can you keep your health insurance?" If the lawyer had dependent children they needed a "Dependent Conversion Privilege" in case their child got sick or hurt which the lawyers never had. Lawyers are pretty easy sales. Save premium, eliminate taxes and build wealth!

  4. Ok, so cheap laughs made about the Christian Right. hardiharhar ... All kidding aside, it is Mohammad's followers who you should be seeking divine protection from. Allahu Akbar But progressives are in denial about that, even as Europe crumbles.

  5. Father's rights? What about a mothers rights? A child's rights? Taking a child from the custody of the mother for political reasons! A miscarriage of justice! What about the welfare of the child? Has anyone considered parent alienation, the father can't erase the mother from the child's life. This child loves the mother and the home in Wisconsin, friends, school and family. It is apparent the father hates his ex-wife more than he loves his child! I hope there will be a Guardian Ad Litem, who will spend time with and get to know the child, BEFORE being brainwashed by the father. This is not just a child! A little person with rights and real needs, a stable home and a parent that cares enough to let this child at least finish the school year, where she is happy and comfortable! Where is the justice?

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