Ada County Assessor v. Roman Catholic Diocese of Boise

• Citation: 849 P.2d 98,123 Idaho 425
• Decision Date: 26 February 1993
• Docket Number: No. 19358,19358
• Parties: In the Matter: The Tax Appeal of Roman Catholic Diocese of Boise from a Decision of the Ada County Board of Equalization. ADA COUNTY ASSESSOR, Petitioner-Appellant, v. ROMAN CATHOLIC DIOCESE OF BOISE, Respondent. Boise, December 1992 Term
• Court: United States State Supreme Court of Idaho

Page 98

849 P.2d 98

123 Idaho 425

In the Matter: The Tax Appeal of Roman Catholic Diocese of Boise from a Decision of the Ada County Board of Equalization ADA COUNTY ASSESSOR, Petitioner-Appellant, v. ROMAN CATHOLIC DIOCESE OF BOISE, Respondent.

No. 19358.

Supreme Court of Idaho,

Boise, December 1992 Term.

Feb. 26, 1993.

Rehearing Denied April 22, 1993.

Greg H. Bower, Ada County Pros. Atty. and Eric T. Krening, Deputy Pros. Atty., argued, Boise, for petitioner-appellant.

Elam, Burke & Boyd, Boise, for respondent. Robert M. Tyler Jr. argued.

McDEVITT, Chief Justice.

BACKGROUND

Roman Catholic Diocese ("RCD") is a non-profit corporation granted income tax exemption under I.R.C. § 501(c)(3). It includes about seventy parishes with resident priests. One priest will regularly serve two or more missions, or a hospital and a mission. The term "regularly" means weekly, biweekly, or at least monthly. Residences are provided to priests as part of their compensation and it is the bishop's duty to provide the housing. The bishop designates where the priests must live. The parishes do not own property and all the homes are owned by the RCD.

In 1989, upon the annual submission of a short form application by the RCD requesting tax exemption for two parcels of real property owned by RCD pursuant to I.C. § 63-105B, ¹ the Ada County Assessor denied the request for the first time since their purchase 10 years ago. RCD owns the two parcels of land that are the subject of this appeal, one residential lot improved with a duplex and one improved with a single-family residence, valued at a total of over $100,000. Bishop Tod Brown has resided in one side of the duplex since April 1989, and Father Mark Schumacher has resided in the other side since 1987. The single-family residence was occupied by semi-retired Father John O'Sullivan until July 1989, at $200 per month rent. RCD requests that both residences be exempted from taxation under I.C. § 63-105B. Ada County's prime contention in denying exemption is that, in order for a residence to qualify for exemption as a parsonage, the inhabiting priest must be assigned to a particular church, parish, or mission and that none of the residents of the disputed properties is so assigned.

Father Schumacher's duties are primarily administrative support services for the parish priests. The duties include handling property, liability and worker's compensation insurances, obtaining permission for marriages, and buying and selling property. His ministerial function is limited to substituting at mass for priests who are sick, on vacation, or between assignments, and some counseling. Father Schumacher's assignments are flexible, and he performs on an as-needed basis, as did Father O'Sullivan prior to full retirement. Indeed, because of the limited number of priests available in the area, there are several that live in Boise that are serving several different parishes, assigned weekly. Bishop Brown is responsible for the ministerial needs of all the state's Roman Catholics, and is required by canon law to visit each of the parishes once every one or two years. Bishop Brown is also the pastor of St. John's Cathedral in Boise, and has conducted services there several times since he arrived in April 1989. However, Father Riffle and Father Worster are primarily responsible for serving the ministerial needs of the parishioners of St. John's. Because of the Bishop's rigorous travel schedule, he conducts services less than 1% of the time at St. John's. The Bishop is the official administrator of the diocese, with Father Schumacher acting as his administrative assistant.

The Board of Tax Appeals ("BTA") determined RCD's properties qualified for a tax exemption as parsonages. Specifically, the BTA exempted one parcel for January 1989 through July 1989, and the other parcel for the entire year. Ada County appealed the BTA's decision to the district court on February 6, 1990, and filed a motion for summary judgment July 13, 1990. RCD filed its motion for summary judgment on January 4, 1991. At the hearing on the parties' cross-motions for summary judgment on March 5, 1991, the district court refused to dispose of the matter by summary judgment for lack of sufficient facts. Following the parties' stipulation to augment the record, the district court issued a memorandum decision and order, dated May 15, 1991, affirming the BTA. Ada County filed its notice of appeal to this Court on June 4, 1991. On appeal to this Court, the parties raise the following issues:

I. Whether the residences are "parsonages" such that they qualify for an ad valorem tax exemption under I.C. § 63-105B.

II. Whether the residences qualify for an ad valorem tax exemption under I.C. § 63-105B, on the basis that they are used for any combination of religious worship, educational purposes, and recreational activities.

III. Whether the residences qualify for an ad valorem tax exemption under I.C. § 63-105C, as property owned by a charitable organization and used exclusively for that organization's charitable purposes.

STANDARD OF REVIEW

Rule 56(c) of the Idaho Rules of Civil Procedure states that summary judgment is to be "rendered forthwith if the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." I.R.C.P. 56(c). Summary judgment is properly issued when the party bearing the burden of proof fails to make a showing sufficient to establish the existence of an element essential to that party's case. Nelson v. Steer, 118 Idaho 409, 410, 797 P.2d 117, 118 (1990); Dekker v. Magic Valley Regional Medical Center, 115 Idaho 332, 333, 766 P.2d 1213, 1214 (1988). On appeal, the reviewing court will not disturb the district court's factual findings if supported by substantial and competent evidence. Evangelical Lutheran Good Sam. Soc. v. Board of Equalization of Latah County, 119 Idaho 126, 127, 804 P.2d 299, 300 (1991). Moreover, this Court does not review facts that were stipulated in the lower court. Linn v. North Idaho Dist. Medical Serv. Bureau, Inc., 102 Idaho 679, 688, 638 P.2d 876, 888 (1981). However this Court is not bound by the legal conclusions of the district court, and is free to draw its own conclusion from the facts presented. Clark v. Saint Paul Property & Liab. Ins. Cos., 102 Idaho 756, 757, 639 P.2d 454, 455 (1981).

Specifically, the questions of law in this case involve statutory interpretation. Under art. II, § 1, art. III, §§ 1 and 15, and art. V, §§ 2 and 13 of the Idaho Constitution, it is solely the province of the legislature to make laws and the duty of the court to construe them and, if a law as construed by the court is to be changed, that is a legislative not a judicial function. Medd v. Arnell, 117 Idaho 660, 667, 791 P.2d 410, 417 (1990); In re Speer, 53 Idaho 293, 23 P.2d 239 (1933).

This Court has consistently adhered to the primary canon of statutory construction that where the language of the statute is unambiguous, the clear expressed intent of the legislature must be given effect and there is no occasion for construction. Otteson v. Board of Commrs. of Madison County, 107 Idaho 1099, 1100, 695 P.2d 1238, 1239 (1985). Moreover, unless a contrary purpose is clearly indicated, ordinary words will be given their ordinary meaning when construing a statute. Bunt v. City of Garden City, 118 Idaho 427, 430, 797 P.2d 135, 138 (1990). In construing a statute, this Court will not deal in any subtle refinements of the legislation, but will ascertain and give effect to the purpose and intent of the legislature, based on the whole act and every word therein, lending substance and meaning to the provisions. George W. Watkins Family v. Messenger, 118 Idaho 537, 539-40, 797 P.2d 1385, 1387-88 (1990).

I. I.C. § 63-105B "PARSONAGE" TAX EXEMPTION

A. Statutory Construction

The constitution authorizes the legislature to "allow such exemptions from taxation from time to time as shall seem necessary and just...." Idaho Const. art. VII, § 5. This rather general empowerment was born after extensive debate at the Constitutional Convention on the matter of property tax exemptions. Constitutional Convention art. VII, § 5, p. 1706. The Convention chose to quash language borrowed from Colorado's constitution specifically exempting all church properties, and several innovative substitutions therefor, in favor of the broad empowerment, indicating that the Convention clearly intended that the legislature should have the sole right to determine what property should be exempt from taxation, and not be constrained by definitive constitutional provisions. Simmons v. Idaho State Tax Comm'n, 111 Idaho 343, 723 P.2d 887 (1986); Achenbach v. Kincaid, 25 Idaho 768, 140 P. 529 (1914). Pursuant to the authority of art. VII, § 5, the legislature embarked on a dynamic, abiding course of prescribing limited ad valorem tax exemptions. It saw fit to carry over the language of the territorial statute exempting religious property into the law of the state until 1913, ² at which time the legislature penned a revision. The statute has remained unchanged since then, codified as I.C. § 63-105B.

Idaho case law requires that all tax exemption statutes be strictly and narrowly construed against the taxpayer, who must show a clear entitlement, and in favor of the state. Courts may not presume exemptions, nor may they extend an exemption by judicial construction where not specifically authorized. Bistline v. Bassett, 47 Idaho 66, 71, 272 P. 696, 701 (1928). See also Bogus Basin Recreational Assoc., Inc. v. Boise County Bd. of Equalization, 118 Idaho 686, 799 P.2d 974 (1990); Canyon County Assessor v. Sunny Ridge Manor, Inc., 106 Idaho 98, 675 P.2d 813 (1984). The language of exemption statutes must be given its ordinary meaning and an exemption will not be sustained unless within the...