Cobb County Bd. of Tax Assessors v. MARIETTA EDUC. GARDEN CTR., INC.

• Decision Date: 30 August 1999
• Docket Number: No. A99A1462.,A99A1462.
• Citation: 239 Ga. App. 740,521 S.E.2d 892
• Parties: COBB COUNTY BOARD OF TAX ASSESSORS v. MARIETTA EDUCATIONAL GARDEN CENTER, INC.
• Court: Georgia Court of Appeals

521 S.E.2d 892

239 Ga. App. 740

COBB COUNTY BOARD OF TAX ASSESSORS v. MARIETTA EDUCATIONAL GARDEN CENTER, INC.

No. A99A1462.

Court of Appeals of Georgia.

August 30, 1999.

Certiorari Denied January 28, 2000.

Haynie & Litchfield, Douglas R. Haynie, Emilie K. Petrovich, Marietta, for appellant.

Moore, Ingram, Johnson & Steele, John H. Moore, J. Kevin Moore, Marietta, for appellee.

McMURRAY, Presiding Judge.

The Cobb County Board of Tax Assessors and the Board of Equalization (the "Board") denied applications for ad valorem tax exemption as a purely public charity under OCGA § 48-5-41(a)(4) filed by the Marietta Educational Garden Center, Inc. (the "Garden Center"). The Garden Center appealed to the superior court for a de novo determination pursuant to OCGA § 48-5-311(g)(3). On cross-motions for summary judgment, the following undisputed facts were adduced:

The Garden Center is the owner of certain real property located at 505 Kennesaw Avenue N.W., Marietta, Georgia. After receiving the property as a gift in 1967, the Garden Center restored it, and the property thereafter was placed on the National Register of Historic Places. For the first time in nearly 30 years, the Garden Center applied for exemption from ad valorem property taxes in 1996 upon notice of reassessment issued by the Cobb Board of Tax Assessors doubling its taxes.

The Garden Center's Articles of Incorporation and Bylaws provide that its objective is to "receive gifts and grants of money and property of every kind and to administer the same for charitable, educational, civic, and philanthropic uses and to do anything necessary and proper for the accomplishment of these purposes." Programs and projects promoted by the Marietta Garden Center include:

Continuing education[;] Close association with other members to foster ideas and ideals[;] Growing and exhibiting flowers, fruits, and vegetables[;] Environmental studies[;] Beautification of parks, schools, etc.[;] Assisting other civic clubs in their projects[;] Paper drives for revenue and conservation of trees[;] Tour of homes, showing tasteful decorations[;] Planning lovely lawns and gardens[;] Flower Show Schools, Landscape Design Schools and Gardening Study Courses[;] A library of all phases of garden club activities[; and] Establishing woodland trails for the blind.

The Marietta Council of Garden Clubs, Inc. (the "Council") operates and maintains the Garden Center "for the benefit of the member clubs and the community." The Council's bylaws also pertinently provide:

The objects of the Council shall be to coordinate the interests of the Garden Clubs of Marietta and Cobb County; to bring them into close relations for mutual helpfulness by association, conference and correspondence; to promote the love of gardening; to promote the study of horticulture; to protect our native trees, wild flowers and birds; and to encourage civic beautification, conservation and pollution control.

The Council assesses its 34 affiliated garden clubs annual dues of $5 per year per club member. Additionally, except in the month of January, the Council rents the Garden Center for weddings, social events, and other activities. Income derived from rental fees is used directly to offset expenses incurred in operating and maintaining the Garden Center. The Center was rented 51 times in 1995; 56 times in 1996; and 51 times in 1997. For 1995, the Garden Center's rental income was $59,450 or 87.5 percent of its 1995 budget. In 1996, rental income was $48,331 or 87.8 percent of that year's budget. In 1997, rental income as a percentage of the annual budget was 72.4 percent or $60,700.

No private shareholder, person, or entity benefits from any of the fees collected by the Garden Center. When the Garden Center is not rented, it is used as a monthly meeting place for member garden clubs and club activities, rent free. While the public may not use the Garden Center on a no-fee basis, the visiting public is allowed to tour its buildings and grounds without charge.

The superior court granted the Marietta Garden Center's cross-motion for summary judgment and denied the Board's motion for summary judgment, concluding that: (a) the Board violated the equal protection doctrine of the Georgia and United States Constitutions taxing the property of the Garden Center while exempting like property of another owner; and (b) the Garden Center qualified as an institution of purely public charity whose property was entitled to exemption from taxation under OCGA § 48-5-41(a)(4). Held:

In two related enumerations of error, the Board complains of the grant of the Garden Center's cross-motion for summary judgment and the denial of its own motion, arguing the Garden Center failed to preserve its equal protection claim on appeal and failed to establish its status as a purely public charity entitled to exemption from ad valorem property taxation.

1. The record reflects the Garden Center first raised its equal protection claim in support of its motion for summary judgment in the superior court, arguing the Board's grant of tax exemptions to the Young Men's Christian Association and the Young Women's Christian Association as institutions of purely public charity as to their Cobb County properties entitled the Garden Center to similar tax treatment.

Where the taxpayer appeals an assessment of the Board of Tax Assessors to the Board of Equalization, and from the decision of the latter to the superior court for a de novo hearing [OCGA § 48-5-311(g) ], he is not permitted to raise in the superior court appeal issues which were not raised in the original appeal to the Board of Equalization. Camp v. Boggs, 240 Ga. 127(1), 239 S.E.2d 530 (1977).

Mundy v. Clayton County Tax Assessors, 146 Ga.App. 473(2), 246 S.E.2d 479.

The Garden Center's notice of appeal to the Board¹ failed to raise the matter of the denial of equal protection as entitling it to exemption from taxation as a purely public charity under OCGA § 48-5-41(a). Consequently, the Garden Center failed to preserve its equal protection claim on appeal, whether to the Board or thereafter to the superior court. Since the Garden Center's equal protection claim was not before the superior court for de novo review of the parties' contentions before the Board of Equalization, the trial court lacked authority to rule the Garden Center had been denied equal protection as a basis for granting its cross-motion for summary judgment. Camp v. Boggs, 240 Ga. 127-128(1), 239 S.E.2d 530, supra.

2. The Board contends the Garden Center is not a purely public charity entitled to exemption from ad valorem taxation, arguing the Garden Center fails to meet the controlling three-prong test established by York Rite Bodies &c. of Savannah v. Bd. of Equalization of Chatham County, 261 Ga. 558(2), 408 S.E.2d 699.

"In determining whether property qualifies as an institution of `purely public charity' as set forth in OCGA § 48-5-41(a)(4), three factors must be considered and must coexist. First, the owner must be an institution devoted entirely to charitable pursuits; second, the charitable pursuits of the owner must be for the benefit of the public; and third, the use of the property must be exclusively devoted to those charitable pursuits." York Rite Bodies &c. of Savannah v. Bd. of Equalization of Chatham County, 261 Ga. 558(2)[, 408 S.E.2d 699, supra].

Institute of Nuclear Power Operations v. Cobb County Bd. of Tax Assessors, 236 Ga. App. 48, 51(1), 510 S.E.2d 844.

The Garden Center urges its entitlement to ad valorem tax exemption in that: (a) its articles of incorporation and bylaws are directed at charitable purposes; (b) its programs and activities in the Marietta-Cobb County community are charitable in nature; (c) its restored property, an historical landmark, is open to the touring public in addition to its dues-paying membership and those renting the property for use as a reception facility; and (d) its rental income is used exclusively to offset operations and maintenance expenses.

"`A familiar meaning of the word "charity" is almsgiving, but as used in the law it may include "substantially any scheme or effort to better the condition of society or any considerable part of it." (Cit.) "`Charity,' as used in tax exemption statutes, is not restricted to the relief of the sick or indigent, but extends to other forms of philanthropy or public beneficence, such as practical enterprises for the good of humanity, operated at moderate cost to the beneficiaries, or enterprises operated for the general improvement and happiness of mankind." 61 CJ 455, § 505,' Sharpe [Tharpe] v. Central Ga. Council, B.S.A., 185 Ga. [810] 813, 196 S.E. 762, 116 ALR 373." Peachtree on Peachtree Inn v. Camp, 120 Ga.App. 403, 409, 170 S.E.2d 709. But of the infinite charities that deserve the plaudits of mankind, our law "restricts tax exemption of institutions of charity to those and those only that are `purely' charitable and also that are `public' charity." United Hosp. Svc. Assn. v. Fulton County, 216 Ga. 30, 32, 114 S.E.2d 524.

Institute of Nuclear Power Operations v. Cobb County Bd. of Tax Assessors, 236 Ga. App. at 52, 510 S.E.2d 844, supra.

The test of whether property is exempt from taxation ... as an institution of "purely public charity" is not whether the owner is an organization of purely public charity, but whether the property is dedicated to charity and used exclusively as an institution of "purely public charity." Tharpe v. Central Ga. Council of Boy Scouts of America, 185 Ga. 810, 196 S.E. 762, 116 ALR 373. That the organization is non-profit, is not used for commercial purposes, and its charter declares it to be a charitable and benevolent institution, do not make it a charitable institution. Mu Beta Chapter Chi Omega House Corp. v. Davison, 192 Ga. 124, 14 S.E.2d 744. Nor does the fact that it may serve a benevolent purpose make it such. Taylor v. Trustees of Jesse Parker

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