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Nonprofit unable to prove it is entitled to charitable tax exemption

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The Indiana Tax Court Friday upheld the decision to deny a charitable purposes exemption for the 2006 tax year to a Bartholomew County nonprofit that provides housing for low-income residents. The court agreed the nonprofit failed to show that its rental properties qualified for the exemption under I.C. 6-1.1-10-16.

Housing Partnerships builds or rehabs housing units and rents or sells them to low- and moderate-income people who may not otherwise be able to obtain safe and decent housing. The organization receives income from donations, federal grants and the money it receives from the sale and rental of its units.

In 2006, Housing Partnerships sought an exemption on each of its rental properties and its administrative office, claiming they were entitled to the exemption outlined in I.C. 6-1.1-10-16 because they were used to provide housing to low-income residents. Its application was denied, and the Indiana Board of Tax Review ruled in 2010 that the organization failed to establish a prima facie case that the properties are entitled to the tax exemption.

Because the provision of low-income housing is not per se a charitable purpose, Housing Partnerships needed to demonstrate that it was taking on a task that would otherwise fall to the government, thus providing a benefit to the community as a whole because the government is able to direct its funds to other community needs.

In Housing Partnerships, Inc. v. Tom Owens, Bartholomew County Assessor, 49T10-1005-TA-23, Housing Partnerships argued that the final determination must be overturned because it is arbitrary, capricious and an abuse of discretion because the board ignored Housing Partnerships’ evidence. It also argued that the final determination is contrary to law.

The IBTR explained that the evidence showed that Housing Partnerships was “a good landlord” and did some “nice things for its tenants,” but it did not demonstrate that the subject properties were owned, occupied and predominately used for a charitable purpose as that term is used in I.C. 6-1.1-10-16. The board’s conclusion that a taxpayer must show more than just good deeds and a nonprofit status is supported by Tax Court caselaw, Judge Martha Wentworth wrote. Housing Partnerships also did not provide evidence that it has relieved the government of an expense that it would have otherwise borne.

Wentworth also found reasonable the board’s conclusion that Housing Partnerships did not provide facts showing that its provision of low-income housing met the legal requirements of a charitable purpose that would entitle it to an exemption from property taxes.
 

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  1. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  2. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

  3. to answer your questions, you would still be practicing law and its very sad because we need lawyers like you to stand up for the little guy who have no voice. You probably were a threat to them and they didnt know how to handle the truth and did not want anyone to "rock the boat" so instead of allowing you to keep praticing they banished you, silenced you , the cowards that they are.

  4. His brother was a former prosecuting attorney for Crawford County, disiplined for stealing law books after his term, and embezzeling funds from family and clients. Highly functional family great morals and values...

  5. Wondering if the father was a Lodge member?

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