Green Scapular Crusade, Inc. v. Town of Palmyra

• Decision Date: 24 February 1984
• Docket Number: No. 82-2286,82-2286
• Citation: 345 N.W.2d 523,118 Wis.2d 135
• Parties: GREEN SCAPULAR CRUSADE, INC., a Wisconsin corporation, Plaintiff-Appellant, v. TOWN OF PALMYRA, Defendant-Respondent.
• Court: Wisconsin Court of Appeals

Page 523

345 N.W.2d 523

118 Wis.2d 135

GREEN SCAPULAR CRUSADE, INC., a Wisconsin corporation Plaintiff-Appellant, v. TOWN OF PALMYRA, Defendant-Respondent.

No. 82-2286.

Court of Appeals of Wisconsin.

Submitted on Briefs Dec. 12, 1983.

Opinion Released Feb. 24, 1984.

Opinion Filed Feb. 24, 1984.

James F. Spohn, Thomas E. Klancnik and Michael, Best & Friedrich, Madison, for plaintiff-appellant.

Richard D. Sperry, Jefferson, for defendant-respondent.

Before GARTZKE, P.J., DYKMAN, J., and GORDON MYSE, Reserve Judge.

GARTZKE, Presiding Judge.

Green Scapular Crusade, Inc., appeals from a judgment dismissing its complaint against the Town of Palmyra. Plaintiff brought this action to recover its payments to the town for general property taxes levied in 1976 through 1981 against the plaintiff's real estate. Plaintiff claims that because it is a religious association, its property is exempt from general property taxes by virtue of sec. 70.11(4), Stats. The trial court held that plaintiff is not a religious association. We reach a contrary conclusion and remand to determine whether the property should be taxed in part under sec. 70.11(8).

Throughout the pertinent years, sec. 70.11, Stats., has provided in relevant part:

The property described in this section is exempted from general property taxes:

* * * (4) Property owned and used exclusively by ... churches or religious, educational or benevolent associations ... but not exceeding 10 acres of land necessary for location and convenience of buildings while such property is not used for profit.

* * *

(8) Where property for which exemption is sought pursuant to this section is used in part for exempt purposes and in part for pecuniary profit, then the same shall be assessed for taxation at such percentage of the full market value of said real and personal property as shall fairly measure and represent the extent of such use for pecuniary profit. In determining the amount of such assessment, the term "pecuniary profit" as used in this section is hereby defined as the use of any portion of said premises or facilities for purposes not directly included within the objects of such organization for which use compensation is received, and the space so used, the period of such use, and all other factors tending to measure the extent thereof, shall be considered in fixing the amount of such assessment.

The material facts are undisputed. Green Scapular Crusade was incorporated by a Roman Catholic layperson in 1971. ¹ Three Roman Catholic laypersons serve as its directors and only members. Its purposes are to "promote and further spiritual interest in Mary, Mother of Jesus, through religious devotion under the title of Our Lady of the Green Scapular; to promote and foster worthy, charitable programs and projects; to hold property and funds incidental to the aforesaid purposes." It does not own and operate a conventional church, or minister to a congregation or membership.

In 1951 plaintiff's employee Father Mersberger established a shrine in a Roman Catholic church in Monona, Wisconsin, and later transferred it to the plaintiff's property in the Town of Palmyra. Plaintiff's property consists of 6.5 acres and a building containing a chapel, museum, gift shop, workroom, office, living quarters and garage. Father Mersberger and his assistant paid $25,000 for a life estate in the living quarters which they occupy. The Roman Catholic Diocese of Madison does not accord official recognition to the Green Scapular Crusade or recognize the corporation, and the chapel has not been consecrated.

The corporation's income is from the life estate payment, donations and bequests, the sale of religious articles and vigil candles, public speaking fees, the administration of sacraments and the operation of a travel club. The plaintiff furnishes Father Mersberger and his assistant with food, utilities and an automobile. Father Mersberger conducts mass in the chapel, counsels persons, and conducts visitors through the museum. He conducts guided tours of the property, collects tour fees and pays a travel agency for tour services. Plaintiff engages in such business for profit and uses the office portion of the premises for that purpose.

The trial court concluded that plaintiff is a religious organization but is not a religious association and is not entitled to an exemption from taxation under sec. 70.11, Stats. The court said in its memorandum opinion that in view of the plaintiff's purposes and the religious nature of the shrine and its related activities, it had no difficulty determining that plaintiff is a "religious corporation." The court held that plaintiff is not "an association" as used in sec. 70.11(4) because plaintiff is a corporation and was organized by one person and its membership is limited to three directors.

The facts having been established, the conclusion that the plaintiff is not a religious association is subject to de novo appellate review. Engineers & Scientists v. Milwaukee, 38 Wis.2d 550, 553-54, 157 N.W.2d 572, 574 (1968). We need not defer to the trial court's reasoning or conclusion.

That a corporation can qualify as an association for purposes of sec. 70.11(4), Stats., and its predecessors is settled law. Hahn v. Walworth County, 14 Wis.2d 147, 151 n. 2, 109 N.W.2d 653, 655 (1961); St. John's Military Academy v. Edwards, 143 Wis. 551, 554-56, 128 N.W. 113, 114 (1910).

We reject the proposition that an association requires more than a restricted membership of three persons. Two or more persons may associate. We see nothing in its membership to prevent plaintiff from being an association for purposes of sec. 70.11(4), Stats.

The town contends that because plaintiff was organized under ch. 181, Stats., entitled "Nonstock Corporations," rather than under ch. 187, Stats., entitled "Religious Societies," the trial court erred when holding that plaintiff is a religious corporation. The town asserts that this...