Boston Chamber of Commerce v. Assessors of Boston
| Decision Date | 28 March 1944 |
| Citation | 54 N.E.2d 199,315 Mass. 712 |
| Parties | BOSTON CHAMBER OF COMMERCE v. ASSESSORS OF BOSTON. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
May 13, 1943.
Present: FIELD, C.
J., DONAHUE, QUA & DOLAN, JJ.
Taxation, Personal property tax: exemption. Charity. Corporation, Charitable corporation. Chamber of Commerce. Words "Benevolent."
In determining as a matter of law whether a certain corporation had sustained the burden of proving that it was charitable within the provisions of G. L. (Ter. Ed.) c. 59, Section 5, Third, a general finding by the Appellate Tax Board, stated to be from all the evidence, which was not reported, that the "dominant purpose of" the corporation was "to promote business and trade and to foster good business practices and relations," was subject to explanation qualification and control by the board's reported findings of specific or subsidiary facts.
Discussion by QUA J., of the characteristics which have been held to determine whether an institution is or is not charitable within the provisions of G. L. (Ter. Ed.) c. 59, Section 5, Third.
Upon a general finding by the Appellate Tax Board that the dominant purpose of the Boston Chamber of Commerce, incorporated by St. 1909, c. 251,
Section 2, without shares of stock or division of profits among its members, was the promotion of good business and commerce and good business practices and relations in Boston and New England, and other findings describing sundry activities carried on by the Chamber in furtherance of that dominant purpose, some of which standing by themselves might be regarded as charitable and others of which would not be, and disclosing an element of special pecuniary benefit from such activities to some members of the Chamber different from that enjoyed by the public as a whole, the Chamber failed to show that it was a charitable corporation entitled to exemption from taxation under G. L.
(Ter. Ed.) c. 59, Section 5, Third.
APPEAL from a decision of the Appellate Tax Board.
J. J. Kaplan, (R.
W. Meserve with him,) for the taxpayer.
R. H. Hopkins, Corporation Counsel, (W.
A. McDermott, Assistant Corporation Counsel, with him,) for the assessors.
The Boston Chamber of Commerce appeals from a decision of the appellate Tax Board sustaining an assessment for the year 1941 upon its tangible personal property, consisting of office equipment and furniture. The issue is whether the property was exempt from taxation by reason of the provisions of G. L. (Ter. Ed.) c. 59, Section 5, Third, which so far as material exempts "Personal property of literary, benevolent, charitable and scientific institutions and of temperance societies incorporated in the commonwealth . . .," with the qualification that "If any of the income or profits of the business of the institution or corporation is divided among the stockholders or members, or is used or appropriated for other than literary, educational, benevolent, charitable, scientific or religious purposes, its property shall not be exempt." The appellant contends that it is a benevolent and charitable corporation.
The evidence is not reported. The Appellate Tax Board made a general finding, stated to be from all the evidence, that "the dominant purpose of the appellant is to foster and promote good business and commerce in Boston and New England and that its activities have been primarily directed to that end." The board further found that the appellant's "dominant purpose is to promote business and trade and to foster good business practices and relations." The board ruled that "Worthy as this purpose may be," it did not bring the appellant within the class of charitable corporations contemplated by the statute, and that "It does not dispense `charity' as that term has been defined by our courts." The general findings of the board are explained and qualified and may be controlled by findings of specific or subsidiary facts, which the board made in considerable detail. Commissioner of Corporations & Taxation v. J. G. McCrory Co. 280 Mass. 273 , 278. MacLeod v. Davis, 290 Mass. 335 , 337-338. It becomes necessary to examine the subsidiary findings in order to ascertain whether the appellant's activities really fall within the class of those which by precedent and reason have become regarded as benevolent and charitable.
The purposes for which the appellant was chartered are set forth in the act incorporating it, St. 1909, c. 251, Section 2, in these words, "The objects of the new corporation shall be to promote the commerce, industry and public interests of Boston, and of New England; to promote and regulate a commercial exchange in the city of Boston; to acquire, preserve and disseminate business information; to adjust controversies and misunderstandings; to establish and maintain uniformity in commercial usages; and to promote just and equitable principles of trade." The appellant has no shares of stock and divides no profit among its members. There are various classes of members, the more important of which are "resident members" and "sustaining members." Any person interested in the development of Boston and New England is eligible to be a member. Annual dues vary from $20 to $40 according to the age of the member. The by-laws provide that "firms, partnerships and corporations, being obviously more benefited by the various bureaus of the Chamber than individual members of the Chamber generally are, may become sustaining members of the Associated Bureaus of the Chamber by agreeing to pay annually" the dues fixed by the by-laws for whichever class of such sustaining membership the directors "may determine to be fair and equitable in the case of such firm, partnership or corporation, having in mind the capitalization of the firm, partnership or corporation, the volume of business done annually, the general value of the work done by the various bureaus to the firms, partnerships or corporations engaged in the particular line of industry or commerce in question, and such other factors as may seem to the Directors pertinent." The annual dues for "sustaining members" vary from "not less than $1,000" for class AA to $100 for class E.
The activities of the appellant are carried on by committees and bureaus. Some of these are the following: The bureau of commercial and industrial affairs collects and disseminates information relating to commerce and industry with the object of improving business conditions in the community. It endeavors to attract new industries to Boston and to increase the volume of general business. Its services are available to the public. The bureau of transportation studies land transportation, especially in respect to freight. It endeavors to secure fair rates and practices in order that Boston may compete favorably with other parts of the country. The civic bureau collects facts relating chiefly to taxation and governmental expenditures and supplies information to governmental agencies regarding such matters. The bureau of investigation and information secures and makes available to business and professional men information of great variety concerning business and commerce. The convention bureau furnishes information and renders assistance to persons desiring to hold or attending conventions in Boston in order to make Boston attractive, interesting, and hospitable to attending visitors. This service is utilized mainly by nonmembers and is without charge. The Maritime Association, Inc., whose members are members of the representatives of members of the appellant, deals with rates, rules, and facilities for shipping by water.
The appellant publishes a monthly magazine of information about Boston and New England intended for the promotion of better commerce and better industrial living and working conditions. The by-laws provide for the formation of "subordinate association[s] of the Chamber" composed of members of the appellant for "promoting the special trade, industry, business, profession, or object in which they are interested." There are other associations of members, such as the executives' club. These promote the main objects of the chamber but emphasize problems of special interest to these groups. The appellant occasionally holds luncheon and dinner meetings at which well known leaders speak on topics of general educational interest. These meetings are open to members and to the public up to the capacity of the hall. At these meetings prices for nonmembers are the same as for members. There are also various forums and conferences open to the public for the discussion of problems of public interest.
The appellant is supported by the dues of its members and by "contributions" of various corporations and firms which constitute the "sustaining fund." It is not clear whether these "contributions" are the same as the "dues" for "sustaining members" fixed as previously stated. In 1941 the "dues" amounted to $76,051.92 and "contributions" to the "sustaining fund" amounted to $40,528.85. There are about two thousand members. The secretary, who receives a salary of $11,000, is the only paid general officer of the appellant, but the appellant's total payroll is about $85,000 per annum, of which $50,000 is paid in salaries to "the executive officers of the various bureaus and committees."
Normally all property of a taxable nature should contribute its proportionate share to the support of the State. Exemption from taxation is a matter of special favor or grace. It will be recognized only where the property falls clearly and unmistakably within the express words of a legislative command....
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