Independent Church of Realization of Word of God, Inc. v. Board of Assessors of Nassau County

• Decision Date: 06 April 1981
• Citation: 437 N.Y.S.2d 435,81 A.D.2d 579
• Parties: The INDEPENDENT CHURCH OF the REALIZATION OF the WORD OF GOD, INC., Respondent-Appellant, v. The BOARD OF ASSESSORS OF NASSAU COUNTY, Appellant-Respondent.
• Court: New York Supreme Court — Appellate Division

Page 435

437 N.Y.S.2d 435

81 A.D.2d 579

The INDEPENDENT CHURCH OF the REALIZATION OF the WORD OF GOD, INC., Respondent-Appellant, v. The BOARD OF ASSESSORS OF NASSAU COUNTY, Appellant-Respondent.

Supreme Court, Appellate Division Second Department.

April 6, 1981.

Edward G. McCabe, County Atty., Mineola (Garrett P. Hopkins, Mineola, of counsel), for appellant-respondent.

Farrell, Fritz, Caemmerer & Cleary, P.C., Williston Park (Steve Herrick, John M. Armentano and Samuel S. Tripp, Williston Park, of counsel), for respondent-appellant.

Before MARGETT, J. P., and O'CONNOR, WEINSTEIN and THOMPSON, JJ.

MEMORANDUM BY THE COURT.

In a declaratory judgment action, the parties cross-appeal from a judgment of the Supreme Court, Nassau County, entered August 27, 1980, which, after a nonjury trial, (1) decreed that plaintiff is a religious corporation, and (2) directed defendant to review plaintiff's application to determine the extent to which its property is entitled to an exemption from real property taxes.

Judgment modified, on the law and the facts, by (1) adding to the first decretal paragraph thereof, after the word "corporation", the following: "organized or conducted for religious and educational purposes" and (2) adding as a third decretal paragraph thereof the following: "It is declared that the portions of the plaintiff's property used for religious and educational purposes are exempt from real property taxes, and that those portions of the property used for health care, i. e., the treatment rooms, 'biofeedback' room, X-ray room, developing room, doctor's office, herb room, reception center for the Wholistic Health Center, office of the director of the Wholistic Health Center, and a 'ministerial' counseling room at the corner of the building used for counseling members of the public and patients of the Wholistic Health Center, are not exempt from real property taxes pursuant to section 421 of the Real Property Tax Law." As so modified, judgment affirmed, without costs or disbursements.

Plaintiff, the Independent Church of the Realization of the Word of God, Inc., was organized in June, 1974 pursuant to article 8 of the Religious Corporations Law. In its certificate of incorporation plaintiff stated that it was "organized exclusively for charitable and religious purposes". Its constitution and by-laws created a "Commission on Education" to set up an educational program.

In 1977 plaintiff purchased the property in question and applied for a real property tax exemption pursuant to section 421 of the Real Property Tax Law. In its application plaintiff asserted that it was a corporation "organized and conducted exclusively for religious purposes." Plaintiff further claimed that the property in question "is used exclusively for religious and educational purposes in that it is intended to be used as a school and an institute for physical, moral and spiritual advancement."

On July 17, 1978 defendant, the Board of Assessors of Nassau County, denied plaintiff's request for a real property tax exemption, because "applicant does not appear to be organized exclusively for the purposes outlined in Section 421 of the Real Property Tax Law." Thereafter, plaintiff commenced the instant action for a declaratory judgment.

At the trial, plaintiff submitted evidence that the building in question was used in part as a school of philosophy and physical education. The school classrooms were also used for religious purposes, primarily on Sunday. However, another portion of the building, known as the "Wholistic Health Center" was used to provide conventional and nonconventional forms of health care to congregants of the church and to members of the public. Plaintiff contends that health care is an important part of its religious practices.

Plaintiff advertised its educational and health care services in the yellow pages to nonadherents of plaintiff's religious principles. At the Wholistic Health Center, Dr. William Rice, a licensed chiropractor, treated private patients who were not connected with the church. In addition, Dr. Neil Moscowitz, who practiced acupuncture, treated patients unconnected with the church, and received income from those patients which was taxable to him individually.

Plaintiff also provided marriage counseling to adherents and nonadherents of the faith, and advertised those services in the yellow pages to members of the public at large.

Based upon that evidence, the trial court concluded that plaintiff was a religious corporation, entitled to a partial real estate tax exemption for those portions of the property that were used for religious purposes.

Property owned by a nonprofit organization may be deemed exempt pursuant to section 421 of the Real...