Faculty-Student Ass'n of Harpur College v. Dawson

• Decision Date: 11 May 1967
• Docket Number: FACULTY-STUDENT
• Parties: Application ofASSOCIATION OF HARPUR COLLEGE, INC., Petitioner, v. Myron DAWSON, Claude Ames and Ralph Efthimiou, Assessors of the Town of Spencer, New York, the Board of Review of the Town of Spencer, New York, and the Town of Spencer, New York, for Review of the Assessment of Certain Property in the Town of Spencer, New York, Respondents. ; Special Term, Broome County
• Court: New York Supreme Court

Page 216

292 N.Y.S.2d 216

57 Misc.2d 112

Application of FACULTY-STUDENT ASSOCIATION OF HARPUR COLLEGE, INC., Petitioner, v. Myron DAWSON, Claude Ames and Ralph Efthimiou, Assessors of the Town of Spencer, New York, the Board of Review of the Town of Spencer, New York, and the Town of Spencer, New York, for Review of the Assessment of Certain Property in the Town of Spencer, New York, Respondents.

Supreme Court, Tioga County; Special Term, Broome County.

May 11, 1967.

Richard N. Aswad, Binghamton, for petitioner.

Winston Spencer Ives, Candor, for respondents.

DAVID F. LEE, Jr., Justice.

In this proceeding, pursuant to the Real Property Tax Law, to review a determination of the Board of Assessors the petitioner, new the Faculty-Student Association of the State University of New York at Binghamton, Inc., seeks the benefit of the tax exemption provided by section 420 of the Real Property Tax Law for qualifying corporations or associations.

The facts have been stipulated to by the parties, and several exhibits submitted in this proceeding. The real property in question consists of approximately 212 acres of land in the Town of Spencer, Tioga County, New York, acquired by the petitioner on September 9, 1965. The 'Stipulation of Facts' states that the premises 'consist of a partly wooded area on which is situate a small lake, partly natural, which had been enlarged by the erection of a dam. (Footnote: subject parcel is 36 miles from Harpur College.) Between the date of acquisition and May 1, 1966, the taxable status date, petitioner did the following acts and improvements, more fully set forth at paragraph 44:

(a) Reconstructed the dam

(b) Improved the entrance read

(c) Cleared areas for parking

(d) Drilled a well

(e) Obtained an easement from neighbors to allow power lines to be strung.'

The 'Stipulation of Facts' further states, in part:

'3. Prior to May 1, 1966, the assessors of the Town of Spencer placed an assessed valuation on said premises for tax purposes in the amount of $4,000.00.

4. On June 21, 1966, being the date for the hearing of complaints with respect to assessments, petitioner appeared before the Board of Assessors and protested said assessment on the ground that the premises are exempt from taxation under Section 420 of the Real Property Tax Law. The basis for this assertion was that petitioner claims to be an educational and charitable corporation and intends to use the premises for educational and charitable purposes.

7. Petitioner is a nonprofit corporation organized under the Membership Corporations Law of the State of New York, originally incorporated August 21, 1950 under the name, Faculty-Student Association of Triple Cities College, Inc., and subsequently consolidated with the Faculty-Student Association of Champlain College, Inc. by certificate of consolidation filed with the Secretary of State June 2, 1953. The name of the consolidated corporation was changed to Faculty-Student Association of Harpur College, Inc. All legal work was effected by State University counsel. On August 30, 1966, petitioner's name again was changed to the Faculty-Student Association of State University of New York at Binghamton, Inc. to reflect the creation of a university center at Binghamton.

8. The purpose clause of the certificate of incorporation read: 'To promote and cultivate social relations among the students and faculty of Triple Cities College, a unit of the State University of New York, and to aid the students and faculty of such college by assisting them in every way possible in their study, work, living and extra-curricular activities.' * * *

9. Pursuant to Section 11, Article II of the Membership Corporations Law, consent of the Commissioner of Education was obtained. (Education Law, Section 216)

10. Section 2 of Article I of the Bylaws sets forth the following purposes of the petitioner in conjunction with the Certificate of Incorporation:

'The purpose of this Association shall be to promote and cultivate educational and social relations among the students and faculty of Triple Cities College, a unit of the State University of New York, hereinafter called the 'College', and to aid the students and faculty of the college by assisting them in every possible way in their education and in their study, work, living, and extra-curricular activities incidental thereto. This Association shall be a nonprofit corporation and any net income which may be derived from any of its operations, in pursuance of the purposes set forth herein shall not inure to the benefit of any member of the Association, but shall be used to promote the educational purposes of the Association or the College.'

14. The University was first comprised of certain existing teachers colleges, the adoption of certain existing extension schools, and certain State Technical Institutes. The overall university control was vested in and continues to remain in the State University Board of Trustees. The President of the State University is responsible to the Trustees. Each constituent unit of the State University has its own council, akin to a Board of Trustees for each unit, and its own President. Thus, each constitutent unit is a separate educational entity within the total university framework. At the creation of the State University nearly 30,000 students in over twenty-five (25) separate institutions became students of the State University of New York.

18. An internal organization for each unit appeared to be needed to meet the demands created by a far-flung university concept composed of over twenty-five (25) separate campuses. The immediate need for the creation of petitioner was caused by the lack of a practical vehicle for the purchase of the bookstore from Syracuse University when the then Triple Cities College joined the State University of New York.

19. State University Counsel played a dominant role in the creation of the petitioner. The duties of Counsel of the University are to provide legal advice and opinions for the Board of Trustees and Officers of the University on matters concerning University affairs. He shall, when requested by the Board of Trustees or the chancellor, conduct negotiations and prepare legal documents for the University.' (New York Compilation of Codes and Rules and Regulations, Education Department Regulation 328.9 (8 NYCRR 328.9))

20. On August 8, 1950 the counsel for State University set forth the following concept for the creation of petitioner in a letter to the then Provost of Triple Cities College, State University of New York:

'As you will see from the Certificate of Incorporation, the Association will be a nonprofit membership corporation created for the purpose of being of service to the students and faculty of Triple Cities College. It is our intention that this Association should operate those student services and facilities which under restrictive state procedures might be cumbersome. Specifically, we anticipate that the Association would operate the college bookstore, be in charge of competitive athletic events, publish campus newspapers, yearbooks, etc., and perform similar service for the students and faculty.'

24. Bylaws for the petitioner were drawn up by the Counsel for the State University of New York.

Article II, Section 1, of petitioner's bylaws now shows the Association Membership to be composed of the following:

(a) Chief Administration Officer (President of College)

(b) Chief Academic Officer (Dean)

(c) Dean of Students

(d) Chief Nonacademic Officer

(e) Associate Dean of Students for Student Activities

(f) 2 Faculty members and 1 Administration member elected by Association

(g) President of Student Government (a student)

(h) Treasurer of Student Government (a student)

(i) Chairman Senior Committee (a student)

(j) Three elected United Student Government Representatives appointed by United Student Government President (students).

25. The Board of Directors, as set forth in Article IV of petitioner's bylaws, is to be made up of five administration or faculty members and one student currently enrolled at the institution, if legally qualified.

26. The Officers of petitioner are elected by the Board of Directors. The officers are President, Vice-President, Secretary and Treasurer. Traditionally, the President of the College is President of Petitioner.

27. None of the members, directors or officers can receive remuneration. (Article V, Section 5, petitioner's bylaws)

28. All books and records of the Association are subject to examination and audit by the State University of New York and the Comptroller of the State of New York pursuant to petitioner's Bylaws, Article VI, Section 3.

29. In the event of dissolution, all assets of petitioner are directed to be transferred to a nonprofit organization or organizations the Board of Directors has deemed qualified and competent to promote the purposes of the College and the educational activities of its faculty and students, such as the Harpur College Foundation. * * *

30. On March 4, 1955, Champlain College, a liberal arts unit, was terminated by State University. Champlain College assets and personal property merged with Harpur College and its staff and students were assigned to Harpur College. Its Faculty-Student Association was consolidated with the Faculty-Student Association of Harpur College with legal work effected by State University Counsel. * * *

31. On August 30, 1966, after commencement of this action, petitioner's name changed to Faculty Student Association of State University of New York at Binghamton, Inc. which reflected the creation of the State University of New York at Binghamton.

32. On February 8, 1952, petitioner received exemption from Federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code, (then Section 101(6)), and petitioner continues to be exempt under that provision. * * * 33. On November 7, 1952, the Board of Appeals of the Labor Department determined...