District of Columbia v. Young Men's Christian Ass'n, 12243.

• Decision Date: 27 January 1955
• Docket Number: No. 12243.,12243.
• Citation: 221 F.2d 56
• Parties: DISTRICT OF COLUMBIA, A Municipal Corporation, Appellant, v. YOUNG MEN'S CHRISTIAN ASSOCIATION of the City of Washington, A Corporation, Appellee.
• Court: U.S. Court of Appeals — District of Columbia Circuit

221 F.2d 56 (1955)

DISTRICT OF COLUMBIA, A Municipal Corporation, Appellant, v. YOUNG MEN'S CHRISTIAN ASSOCIATION of the City of Washington, A Corporation, Appellee.

No. 12243.

United States Court of Appeals, District of Columbia Circuit.

Argued January 10, 1955.

Decided January 27, 1955.

Mr. Henry E. Wixon, Asst. Corp. Counsel for District of Columbia, with whom Messrs. Vernon E. West, Corp. Counsel, Chester H. Gray, Principal Asst. Corp. Counsel, and George C. Updegraff, Asst. Corp. Counsel, Washington, D. C., on the brief, for appellant.

Mr. Daniel J. Freed, with whom Mr. Albert F. Adams, Washington, D. C., on the brief, for appellee.

Before WILBUR K. MILLER, FAHY and DANAHER, Circuit Judges.

DANAHER, Circuit Judge.

The District of Columbia has appealed from a judgment which allowed recovery of certain sums representing nine-elevenths of the total required to redeem appellee's property from sale for nonpayment of a tax assessed in fiscal 1943 against realty owned by the YMCA. The latter claimed exemption pursuant to Private Law 1026, 81st Congress, 2d Sess.¹ Commencing in 1942, appellee erected an eleven story building on Lot 809, Square 169 in the District of Columbia, nine floors being occupied and used for the purposes² of the YMCA and the remaining two floors being rented to a commercial enterprise.

The District argued that the words "accrued liability * * * for taxes imposed" appearing in Section 2 of the 1950 Act could not relate back to the tax year 1943. Appellee contended that it had been exempt from real estate taxation since it was chartered by Congress in 1864, and that except for the tax year 1943, the District had never assessed nor sought collection of a tax. The District argued that its failure to tax over some fifty or more years was due to its mistaken belief that an exemption had been accorded to this appellee in 1894 when in fact, the exemption had been granted to a different entity, the newly formed Young Men's Christian Association of the District of Columbia.

Where the language of the 1950 Act is ambiguous and the intent of Congress is in doubt, we are permitted to examine the legislative history. We have done so.

On August 14, 1950, Mr. McMillan from the Committee on the District of Columbia submitted House Report No. 2912 to accompany H.R. 8797 which disclosed the existence of two corporate entities one, the appellee, Young Men's Christian Association of the City of Washington, chartered by Congress on June 28, 1864, 13 Stat. 411, and the other, the Young Men's Christian Association of the District of Columbia, incorporated June 6, 1892, under the general corporation laws of the District. By the Act of August 6, 1894³ real property of the latter was specifically exempted from taxation. The report makes clear that "The proposed bill H.R. 8797 is designed to place the Young Men's Christian Association of the City of Washington in the same position with respect to exemption from real estate taxes as that which is enjoyed by the Young Men's Christian Association of the District of Columbia," and concludes: "The second paragraph of the bill H.R. 8797 makes this legislation retroactive to August 6, 1894, and would confer legal authority in the District of Columbia for exempting properties of the Young Men's Christian Association of the City of Washington from taxes as they have done under erroneous authority since this date." Mr. McMillan explained on the floor that "the puropse of the bill is to exempt only the building from taxation. They have been exempted for 60 years. However, this year the Tax Assessor has levied a tax on the YMCA Building."⁴ A colleague expressed the hope that "when this bill gets to conference" provision might be made that a commercial restaurant in the building, operated for profit, "should pay the same taxes that any other restaurant * * * pays." Mr. McMillan: "I agree with the gentleman and will work to correct that situation if it does exist."⁵ Thereupon, the bill was passed containing a sentence: "This amendment shall be effective as of August 6, 1894."⁶

On August 28, 1950, Senator Hunt from the Committee on the District of Columbia submitted Senate Report No. 2451 to accompany H.R. 8797, recommending favorable action but with an amendment striking out the effective date "as of August 6, 1894" and inserting in lieu thereof the language now appearing as Section 2.⁷ The report concluded: "The purpose of this bill is to exempt the property of the Young Men's Christian Association of the City of Washington from taxation." Senator Hunt explained as to the use of the property: "A part of it is leased, and taxes are paid upon the part which is leased."⁸

Following affirmative Senate action, the bill was again taken up in the House on September 15, 1950. The Senate amendments were explained by Mr. McMillan who concluded: "All the bill does is to exempt the YMCA from paying taxes in the District of Columbia which they have never paid. Some regulation came up this year compelling them to pay taxes unless this resolution is agreed to * * *."⁹ The bill was then passed in its present form.

The District strenuously argues that the language of the Act had reference only to prospective exemption and to relief for a tax assessed in the year 1950. The original House language would have granted total exemption, effective in 1894 and thereafter. The Senate sought to achieve the same result except as to so much of the property as might be leased for commercial purposes. We believe the...