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. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  2. Paul Hartman of Burbank, Oh who is helping Sister Fuller with this Con Artist Kevin Bart McCarthy scares Sister Joseph Therese, Patricia Ann Fuller very much that McCarthy will try and hurt Patricia Ann Fuller and Paul Hartman of Burbank, Oh or any member of his family. Sister is very, very scared, (YES, I AM) This McCarthy guy is a real, real CON MAN and crook. I try to totall flatter Kevin Bart McCARTHY to keep him from hurting my best friends in this world which are Carolyn Rose and Paul Hartman. I Live in total fear of this man Kevin Bart McCarthy and try to praise him as a good man to keep us ALL from his bad deeds. This man could easy have some one cause us a very bad disability. You have to PRAISAE in order TO PROTECT yourself. He lies and makes up stories about people and then tries to steal if THEY OWN THRU THE COURTS A SPECIAL DEVOTION TO PROTECT, EX> Our Lady of America DEVOTION. EVERYONE who reads this, PLEASE BE CAREFUL of Kevin Bart McCarthy of Indianapolis, IN My Phone No. IS 419-435-3838.

  3. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  4. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  5. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.