Michigan United Conservation Clubs v. Lansing Tp.

• Decision Date: 27 November 1985
• Docket Number: Docket No. 72784
• Parties: MICHIGAN UNITED CONSERVATION CLUBS, Plaintiff-Appellant, v. Charter TOWNSHIP OF LANSING, Defendant-Appellee. 423 Mich. 661, 378 N.W.2d 737
• Court: Michigan Supreme Court

Page 737

378 N.W.2d 737

MICHIGAN UNITED CONSERVATION CLUBS, Plaintiff-Appellant, v. Charter TOWNSHIP OF LANSING, Defendant-Appellee.

Docket No. 72784.

423 Mich. 661, 378 N.W.2d 737

Supreme Court of Michigan.

Argued June 5, 1985.

Decided Nov. 27, 1985.

McGinty, Brown, Jakubiak, Frankland & Hitch, P.C. by Kenneth P. Frankland (P 13643), East Lansing, for plaintiff-appellant.

Thrun, Maatsch & Nordberg, P.C. by Patrick J. Berardo (P10707), Lansing, for defendant-appellee.

CAVANAGH, Justice.

The issue requiring our decision is whether the Tax Tribunal's decision to deny plaintiff's claimed exemptions as an educational or charitable institution is supported by material, competent, and substantial evidence on the whole record. Const.1963, art. 6, Sec. 28. We hold that the record supports the Tax Tribunal's decision, and affirm the judgments rendered by the Tax Tribunal and the Court of Appeals. However, we modify a portion of the Court of Appeals opinion, since we believe that it used an improper analysis in upholding the Tax Tribunal's decision.

I

This appeal involves claimed exemptions for the 1980 and 1981 tax years. Michigan United Conservation Clubs (MUCC) filed its petition with the Tax Tribunal on May 9, 1980. At that time, the fourth paragraph of Sec. 7 of the General Property Tax Act exempted the following property:

"Such real estate as shall be owned and occupied by library, benevolent, charitable, educational or scientific institutions and memorial homes of world war veterans incorporated under the laws of this state with the buildings and other property thereon while occupied by them solely for the purposes for which they were incorporated." 1968 PA 342.

1980 P.A. 142, effective June 2, 1980, eliminated the word "benevolent" and reorganized the applicable exemptions into distinct sections. From June 2, 1980, through the 1981 tax year, MUCC claims exemptions under the following sections:

"Real estate or personal property owned and occupied by nonprofit theater, library, educational, or scientific institutions incorporated under the laws of this state with the buildings and other property thereon while occupied by them solely for the purposes for which the institutions were incorporated is exempt from taxation under this act." M.C.L. Sec. 211.7n; M.S.A. Sec. 7.7(4k). ¹

"Real estate or personal property owned and occupied by nonprofit charitable institutions incorporated under the laws of this state with the buildings and other property thereon while occupied by them solely for the purposes for which they were incorporated; and charitable homes of fraternal or secret societies and nonprofit corporations whose stock is wholly owned by religious or fraternal societies which own and operate facilities for the aged and chronically ill, in which the net income from the operation of the corporations does not inure to the benefit of any person other than the residents is exempt from taxation under this act." M.C.L. Sec. 211.7o ; M.S.A. Sec. 7.7(4-1). ²

Since the Legislature has not defined the terms "educational" or "charitable" institutions as they appear in these statutes, it is our primary duty to interpret these phrases and glean the Legislature's intent. In general, tax exempt statutes must be strictly construed in favor of the taxing authority. However, this rule does not mean that we should give a strained construction which is adverse to the Legislature's intent. See City of Ann Arbor v. The University Cellar, Inc., 401 Mich. 279, 288-289, 258 N.W.2d 1 (1977).

II

MUCC is a nonprofit organization composed of individuals and local affiliate clubs. Its headquarters is located on approximately five acres of land and includes an office building and small warehouse. The bylaws were introduced at the tribunal hearing and state:

"The purpose of this Corporation shall be:

"(A) To further and advance the cause of the environment and conservation in all its phases, and to perpetuate and conserve the fish, game, mineral, air, water, forest and land resources of the state, to so manage the use of all natural resources that this generation and posterity will receive the maximum benefit from the same.

"(B) To promote and encourage the scientific management and intelligent sustained use of the above resources, recognizing as a valid management tool the harvest and use of surplus wildlife and other renewable resources.

"(C) To promote conservation education programs designated to educate citizens in the cause of natural resource conservation and environmental protection and enhancement, creating in them an awareness and understanding of the importance of this aim, equipping them to work knowledgeably and effectively toward this achievement and through rational discussion to attempt resolution of all issues affecting our environment.

"(D) To protect and defend the right of our citizens to own, keep and bear arms.

"(E) To disseminate these purposes and objectives through an official publication known as Michigan Out-of-Doors, and through such other publications or media which may from time to time be desirable." (Emphasis supplied.)

MUCC's Executive Director, Thomas L. Washington, testified that subsection (C) of the bylaws was the organization's most critical goal. The various means used to achieve this goal, as well as other facts relevant to the claimed exemptions, are well-documented by the Court of Appeals:

"Other activities sponsored by MUCC include a natural resource leadership training course designed to develop citizen leaders in the conservation movement, a national hunting and fishing day, a hunter safety training course, a summer youth camp focusing on natural resource management, outdoor survival, water and hunting safety courses, and the Detroit Outdoorama, an exposition of recreation and conservation education with workshops and demonstrations. While all these activities are available to the general public, most participants in the natural resource leadership training courses are MUCC members.

"MUCC maintains a small reference library in the Wood Street office building. The library, which contains reference volumes, pamphlets, films, and slides, is open to members of the public for research, but materials are not loaned to the public. Some films and filmstrips may be borrowed with a $3 charge for shipping and cleaning the films.

"The Wood Street headquarters also house a full-time environmental education specialist who deals with career inquiries from the public, a staff ecologist who investigates natural resource management issues for both MUCC and the public, and a full-time coordinator who trains lay teachers for the MUCC Wildlife Discovery Program. This program is conducted in the public school systems in Detroit, Lansing, and Grand Rapids, although the lay teachers are not certified and are called Wildlife Discovery Guides by MUCC. Short wildlife ecology and fishery courses are presented to the public and are accepted for credit at Michigan State University. MUCC, however, does not grant any degrees, is not accredited by any educational accrediting institution, and receives no state money for any of its programs. When members of MUCC give lectures and talks at schools or public gatherings, part of their purpose in speaking is to set forth the view and position of MUCC. Finally, a 'Save Our Guns Fund' is operated from the Wood Street headquarters. Although the fund has 'nothing to do with Michigan United Conservation Clubs' and is dormant because there is no current movement to alter the Michigan Constitution to prevent private ownership and use of firearms, MUCC administers the fund, a role it accepted because one of MUCC's purposes is to protect and defend the rights of citizens to own, keep, and bear arms. This purpose is pursued as part of MUCC's work to advance the conservation of natural resources." Michigan United Conservation Clubs v. Lansing Twp, 129 Mich.App. 1, 6-7, 342 N.W.2d 290 (1983).

III

The Tax Tribunal denied MUCC's request for an educational exemption. In affirming the decision, the Court of Appeals correctly noted our discussion of this exemption in Ladies Literary Club v. Grand Rapids, 409 Mich. 748, 755-756, 298 N.W.2d 422 (1980): ³

"Something more than serving the public interest is required to bring one claiming an exemption as an educational institution within the goals and policies affording a tax exemption.

"In Detroit v Detroit Commercial College, [322 Mich 142; 33 N.W.2d 737 (1948)] our Court determined that an institution seeking an educational exemption must fit into the general scheme of education provided by the state and supported by public taxation. This proposition was refined in David Walcott Kendall Memorial School v Grand Rapids, 11 Mich App 231; 160 NW2d 778 (1968), which declared that an educational exemption may be available to an institution otherwise within the exemption definition, if the institution makes a substantial contribution to the relief of the burden of government.

"It cannot be maintained that were it not for the Ladies Literary Club's programs, which enhance educational and cultural interests, the burden on the state would be proportionately increased. The club's programs do not sufficiently relieve the government's educational burden to warrant the claimed educational institution exemption. See American Society of Agricultural Engineers v St Joseph Twp, 53 Mich App 45; 218 NW2d 685 (1974); American Concrete Institute v State Tax Comm, 12 Mich App 595; 163 NW2d 508 (1968)."

MUCC argues that the state has a responsibility to educate the public on matters concerning conservation of the state's natural resources based on Const. 1963, art. 4, Sec. 52, which states:

"The conservation and development of the natural resources of the state are hereby declared to be of paramount public concern in the interest of the health, safety and general welfare of the people. The legislature shall provide for the protection of...