ILNews

Judge upholds 2009 tax year exemption

Back to TopCommentsE-mailPrintBookmark and Share

The Indiana Tax Court rejected the Hamilton County assessor’s claim that a for-profit limited liability company created to purchase office space for its nonprofit tissue donation company should not qualify for a charitable purposes exemption for the 2009 tax year.

New Life Generation Inc. was created in May 2008 as a nonprofit to procure tissue donations, perform donation recoveries, and provide related donor services. After New Life had trouble renting suitable space, its owners formed SPD, a LLC, to purchase an office building. It leased a portion of the building to New Life for a 10-year period. New Life paid rent in the amount of SPD’s mortgage, as well as all real and personal property taxes and other expenses.

SPD requested a charitable purposes exemption for the 2009 tax year, which the Hamilton County Property Tax Assessment Board of Appeals denied. SPD appealed, and the Indiana Board of Tax Review granted the exemption.

In Hamilton County Assessor v. SPD Realty, LLC, 49T10-1104-TA-28, the assessor contended that the board’s final determination is contrary to law and unsupported by substantial evidence because New Life did not occupy and use the property for a charitable purpose;  SPD did not own the property for a charitable purpose; and the property was not  predominately used for charitable purposes. In its final determination, the IBTR explained that it found that New Life occupied and used the property for a charitable purpose because the parties did not appear to dispute the issue.

There is substantial evidence to support the board’s finding that New Life occupied and used the property for a charitable purpose, Judge Martha Wentworth wrote, because the assessor did not challenge SPD’s claims regarding New Life’s charitable purpose or present evidence to the contrary. Instead, the assessor focused primarily on whether SPD had a charitable purpose.

The IBTR also determined that the totality of the evidence demonstrated that SPD owned the property for a charitable purpose. The totality of the evidence indicates that the arrangement between SPD and New Life was not a typical landlord-tenant relationship and that SPD did not have a profit motive, Wentworth wrote. The evidence of the close relationship between these two entities does support the finding that each has a similar charitable purpose. Wentworth declined to reweigh the evidence in the assessor’s favor.

Wentworth also rejected the assessor’s claim that the board incorrectly determined that SPD’s property was predominately used for charitable purposes. The language of I.C. 6-1.1-10-36.3(a) “clearly requires that a property be used or occupied for charitable purposes for more than 50% of the time that it is actually used or occupied during the tax year at issue. Here, the evidence shows that in the four months the property was used and occupied, it was used 100% of the time for the charitable purpose of operating a tissue bank,” she wrote.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Based on several recent Indy Star articles, I would agree that being a case worker would be really hard. You would see the worst of humanity on a daily basis; and when things go wrong guess who gets blamed??!! Not biological parent!! Best of luck to those who entered that line of work.

  2. I was looking through some of your blog posts on this internet site and I conceive this web site is rattling informative ! Keep on posting . dfkcfdkdgbekdffe

  3. Don't believe me, listen to Pacino: https://www.youtube.com/watch?v=z6bC9w9cH-M

  4. Law school is social control the goal to produce a social product. As such it began after the Revolution and has nearly ruined us to this day: "“Scarcely any political question arises in the United States which is not resolved, sooner or later, into a judicial question. Hence all parties are obliged to borrow, in their daily controversies, the ideas, and even the language, peculiar to judicial proceedings. As most public men [i.e., politicians] are, or have been, legal practitioners, they introduce the customs and technicalities of their profession into the management of public affairs. The jury extends this habitude to all classes. The language of the law thus becomes, in some measure, a vulgar tongue; the spirit of the law, which is produced in the schools and courts of justice, gradually penetrates beyond their walls into the bosom of society, where it descends to the lowest classes, so that at last the whole people contract the habits and the tastes of the judicial magistrate.” ? Alexis de Tocqueville, Democracy in America

  5. Attorney? Really? Or is it former attorney? Status with the Ind St Ct? Status with federal court, with SCOTUS? This is a legal newspaper, or should I look elsewhere?

ADVERTISEMENT