Department of Revenue and Taxation of State of Wyo. v. Casper Legion Baseball Club, Inc.

Decision Date11 January 1989
Docket Number88-186,Nos. 88-185,s. 88-185
PartiesThe DEPARTMENT OF REVENUE AND TAXATION OF the STATE OF WYOMING, Appellant (Petitioner), v. CASPER LEGION BASEBALL CLUB, INC. Appellee (Respondent). CASPER LEGION BASEBALL CLUB, INC. Appellant (Petitioner), v. The DEPARTMENT OF REVENUE AND TAXATION OF the STATE OF WYOMING, Appellee (Respondent).
CourtWyoming Supreme Court

Joseph B. Meyer, Atty. Gen., Peter J. Mulvaney, Deputy Atty. Gen., Sylvia Lee Hackl, Sr. Asst. Atty. Gen., Robert J. Walters, Asst. Atty. Gen., and Milo M. Vukelich, Asst. Atty. Gen., Cheyenne, for appellant in Case No. 88-185 and appellee in Case No. 88-186.

Kenneth R. Marken, Casper, for appellee in Case No. 88-185 and appellant in Case No. 88-186.

Before THOMAS, URBIGKIT, MACY and GOLDEN, JJ., and GUTHRIE, J., Retired.

GOLDEN, Justice.

Appellant State of Wyoming Department of Revenue and Taxation (Department) appeals a district court decision granting appellee Casper Legion Baseball Club, Inc. (Legion) an exemption from state sales taxation. The district court's decision reversed the Department's administrative decision denying the exemption, but it denied Legion's motion for costs of a transcript and filing fees on reversal. The issue presented by the Department is whether the Legion is entitled to the exemption as a "charitable" organization under W.S. 39-6-405(a)(xiv) (May 1985 Repl.) 1 and W.S. 39-6-505(a)(vi) (May 1985 Repl.) 2 . Legion cross-appeals requesting an award of costs of the transcript and filing fees.

We affirm the district court in all respects.

Legion is a nonprofit corporation promoting and financing competitive baseball activities for youth in Casper and Glenrock, Wyoming. Any youngster meeting the age and jurisdictional requirements set by the National American Legion is eligible to try out for Legion teams. The Legion program provides physical, recreational, and moral benefits to young people in the two cities. Team members pay no registration fee, although they do pay a refundable uniform deposit. Legion generates income through private donations, admission charges, various fund raising activities, and profits from concession sales at the games. Legion's expenses include coaches' salaries, bus driver fees, bus maintenance, umpire fees, sundry travel and lodging expenses, and costs of administration and organization. Legion is qualified as a federal nonprofit organization exempt from federal income taxation.

In January 1987, Legion applied to the Department for a state sales taxation exemption of its concession sales and other fund raising activities involving sales. The Department's Manager of the Field Audit Section, Mr. Richard Hubbard, responded by letter. Hubbard denied Legion's request for an exemption saying Legion was not the kind of organization that qualified for an exemption under Wyoming statutes. Legion asked for reconsideration in early February 1987, and Hubbard again responded with a denial of Legion's request. Legion then filed an administrative appeal with the State Board of Equalization (Board), a hearing body within the Department. The Board heard the appeal on September 25, 1987, and affirmed Hubbard's decision.

Undaunted, Legion filed a petition for judicial review of the Board's final administrative decision with the District Court, Seventh Judicial District, in Casper, Wyoming, on January 7, 1988. After reviewing both parties' briefs and the record, the district court issued a May 26, 1988, order reversing the Board's decision but denying Legion's motion to recover its costs of a transcript and filing fees. The Department appealed from the district court's reversal of the Board decision to this court on June 6, 1988. Two days later, Legion cross-appealed seeking the above mentioned costs. The cases were consolidated for briefing by the clerk of this court.

We review a district court decision concerning an appeal from an administrative contested case by reviewing agency findings and conclusions under the statutory standard applied by the district court. See Employment Security Commission of Wyoming v. Laramie Cabs, Inc., 700 P.2d 399, 403-404 (Wyo.1985). In this review we inquire whether agency findings and conclusions were shown to be either:

(A) Arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law;

(B) Contrary to constitutional right, power, privilege or immunity;

(C) In excess of statutory jurisdiction, authority or limitations or lacking statutory right;

(D) Without observance of procedure required by law; or

(E) Unsupported by substantial evidence in a case reviewed on the record of an agency hearing provided by statute.

W.S. 16-3-114(c)(ii) (October 1982 Repl.). See also W.R.A.P. 12.09 and 12.11(a).

The issue here is whether the Department properly interpreted the meaning of "charitable" as used in the state taxation exemption statutes. If the Department improperly interpreted "charitable," we must review the facts in this record in light of the correct statutory interpretation.

Involved in this appeal are two statutory exemptions from state taxation. The first, W.S. 39-6-405(a)(xiv), provides for a state sales tax exemption for "[o]ccasional sales made by religious or charitable organizations for fund raising purposes for the conduct of regular religious or charitable functions and activities * * *." See also W.S. 39-6-405(a)(xii) (May 1985 Repl.). The second, W.S. 39-6-505(a)(vi), provides a state excise tax exemption for "[p]urchases made by religious or charitable organizations in the conduct of their regular religious or charitable functions." By administrative rule, the Department has also adopted a decidedly narrow interpretation of the word "charitable" as it is used in these statutes. Pertinent provisions of Department rules provide that:

(a) Qualified religious or charitable organizations are those determined by the State Tax Commission to be bona fide associations or corporations organized for and engaged primarily and substantially in religious or charitable activities, including worship, religious education and assisting poor, aged, disabled and infirm persons.

* * *

* * *

(f) Purchases by civic organizations, service clubs and other organizations not organized primarily and substantially for charitable or religious purposes are not exempt from the tax.

Rules and Regulations of the Wyoming Tax Commission, Department of Revenue and Taxation, ch. III, § 57(a) and (f) at 31-32 (July 3, 1985).

The Department argues that the plain meaning of the word "charitable," does not extend an exemption to Legion because Legion is a private club that promotes its own interests without conferring a public benefit. This amounts to a restatement of the Board's conclusions of law that, although Legion's stated primary purpose is to foster good values and ideals in young people, the way it implements its program does not provide a general public benefit.

The Department ignores the plain language of the statute and focuses on the wrong aspect of the function of a charity. When interpreting a statute or provision we search for legislative intent. Department of Revenue and Taxation of the State of Wyoming v. Hamilton, 743 P.2d 877, 879 (Wyo.1987). We always begin that search by focusing on the language of the legislative enactment, giving that language plain and ordinary meaning unless otherwise indicated. Schultz v. State, 751 P.2d 367, 370 (Wyo.1988); Hamilton, 743 P.2d at 879; Mahoney v. L.L. Sheep Company, 79 Wyo. 293, 333 P.2d 712, 715 (1958).

We disagree with the Department's interpretation of the statutory language. Black's Law Dictionary defines "charitable" as including "every gift for a general public use, to be applied consistent with existing laws, for benefit of an indefinite number of persons, and designed to benefit them from an educational, religious, moral, physical or social standpoint." Black's Law Dictionary 212 (5th ed.1979) (citing American Society for Testing and Materials v. Board of Revision of Taxes, Philadelphia County, 423 Pa. 530, 225 A.2d 557, 560 (1967)). Applying the plain meaning of "charitable," we find Legion's stated purposes and activities qualify it for the state taxation exemptions. Legion is a young persons' baseball organization, open to all Casper and Glenrock youth falling within the proper age group. Although not all young people who try out make a team, all are given an equal opportunity to do so. As a result, Legion provides to young people who try out an annual opportunity to receive a positive physical, social, and moral experience through competitive sports and fulfills that opportunity for a number of those youth. This in turn provides a general public benefit to the Casper and Glenrock areas in terms of the physical, social, and moral well-being of the youth in those communities. The Department's argument that Legion must provide this experience for every youth who tries out does not fit within the...

To continue reading

Request your trial
17 cases
  • Mekss v. Wyoming Girls' School, State of Wyo., 89-235
    • United States
    • Wyoming Supreme Court
    • June 12, 1991
    ...Conclusions of law are affirmed if they are in accord with the law. Department of Revenue and Taxation of State of Wyoming v. Casper Legion Baseball Club, Inc., 767 P.2d 608 (Wyo.1989). If conclusions of law are not in accord with applicable rules, they are corrected. Employment Security...
  • Parker Land and Cattle Co. v. Wyoming Game and Fish Com'n
    • United States
    • Wyoming Supreme Court
    • January 22, 1993
    ...of law is straightforward. If the conclusion of law is in accordance with law, it is affirmed, [Dep't. of Rev. & Tax. v. Casper Legion Baseball Club, Inc., 767 P.2d 608 (Wyo.1989) ]; if it is not, it is to be corrected, [Rocky Mountain Oil & Gas Ass'n v. State Bd. of Equalization, 749 P.2d ......
  • Employment Sec. Com'n of Wyoming v. Western Gas Processors, Ltd.
    • United States
    • Wyoming Supreme Court
    • February 1, 1990
    ...of fact is reserved for the fact-finder which, in this case, is ESC. Department of Revenue and Taxation of State of Wyoming v. Casper Legion Baseball Club, Inc., 767 P.2d 608 (Wyo.1989). See Zezas Ranch, Inc. v. Board of Control, 714 P.2d 759, 764 When reviewing a claim that an agency deter......
  • Lietz v. State ex rel. Dep't of Family Servs.
    • United States
    • Wyoming Supreme Court
    • November 27, 2018
    ...evidence. Dale v. S & S Builders, LLC, 2008 WY 84, ¶ 22, 188 P.3d 554, 561 (Wyo. 2008) ; Dep’t of Revenue & Taxation of State of Wyo. v. Casper Legion Baseball Club, Inc., 767 P.2d 608 (Wyo. 1989). [¶ 11] When we review a claim that an agency determination is not "supported by substantial e......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT