Summit United Methodist Church v. Kinney

• Decision Date: 09 November 1983
• Docket Number: No. 83-385,83-385
• Citation: 7 Ohio St.3d 13,455 N.E.2d 669
• Parties: , 7 O.B.R. 406 SUMMIT UNITED METHODIST CHURCH, Appellant, v. KINNEY, Commr., Appellee.
• Court: Ohio Supreme Court

Page 13

7 Ohio St.3d 13

455 N.E.2d 669, 7 O.B.R. 406

SUMMIT UNITED METHODIST CHURCH, Appellant, v. KINNEY, Commr., Appellee.

No. 83-385.

Supreme Court of Ohio.

Nov. 9, 1983.

Syllabus by the Court

Real property which is not used primarily for public worship does not qualify for a tax exemption under R.C. 5709.07. (Bishop v. Kinney, 2 Ohio St.3d 52, 442 N.E.2d 764, approved and followed.)

Appellant, Summit United Methodist Church, sought a tax exemption for two parcels of real estate located in Columbus. One of the parcels was a parish center with an educational wing located at 1985 Summit Street, Columbus, and the other parcel was the campus center located at 82 E. 16th Avenue, Columbus. Appellant is a non-profit Ohio corporation and an organized church under the West Ohio Conference of the United Methodist Church.

In oral argument, both parties stated that an exemption had been granted the campus center subsequent to the decision of the Board of Tax Appeals and prior to the appeal to this court. Consequently, this appeal concerns the tax exemption of the parish center only. The building is comprised of a sanctuary and an educational wing. The sanctuary section was granted an exemption and is not at issue. The appeal concerns the educational wing which has rooms on three levels. The Board of Tax Appeals concluded that, "[T]he educational wing is used on Sundays by the Appellant for Sunday school classes, but during the week the facilities are leased and used by the Ohio State University, which operates a day care center for children of its faculty, staff and students. The University had a five-year lease on the property and paid rent of $9,309 in 1978, plus utilities on the property. The day care center is under the control of Ohio State University and it charges a sliding scale fee to those families [sic ] and personnel that use it." Appellant also states that the educational wing includes administrative offices and a minister's office.

The Commissioner of Tax Equalization held that the educational wing was not used exclusively for public worship but was leased with a view to profit. The Board of Tax Appeals affirmed.

Windell F. Fisher, Columbus, for appellant.

Anthony J. Celebrezze, Jr., Atty. Gen. and James C. Sauer, Asst. Atty. Gen., for appellee.

FRANK D. CELEBREZZE, Chief Justice.

Appellant contends that the subject property qualifies for a tax exemption under R.C. 5709.07 or, alternatively, under R.C. 5709.12.

R.C. 5709.07 states in pertinent part:

" * * * [H]ouses used exclusively for public worship, * * * and not leased or otherwise used with a view to profit, * * * shall be exempt from taxation. * * * "

The language exempts from taxation houses used exclusively for public worship and not leased or otherwise used with a view to profit. The "used exclusively" language was construed in Bishop v. Kinney (1982), 2 Ohio St.3d 52, 442 N.E.2d 764. The primary use test, which allowed an exemption if the property was used primarily for public worship, enunciated in In re Bond Hill-Roselawn Hebrew School (1949), 151 Ohio St. 70, 84 N.E.2d 270 , was approved. In Bishop, the court concluded that the Board of Tax Appeals found that the primary use was religious and based upon the Bond Hill test, it held that the taxpayer was entitled to an exemption.

In the case sub judice, the Board of Tax Appeals affirmed the commissioner's finding that the uses were not primarily religious in nature. "In reviewing decisions of the board, this court has repeatedly stated that it is not a trier of fact de novo, but that it is confined to its statutorily delineated duties (R.C. 5717.04) of determining whether the board's decision is 'reasonable and lawful.' Citizens Financial Corp. v. Porterfield (1971), 25 Ohio St.2d 53, 266 N.E.2d 828 ; Buckeye Power v. Kosydar (1973), 35 Ohio St.2d 135 [sic 137], 298 N.E.2d 610 ; Cardinal Federal S. & L. Assn. v. Bd. of Revision (1975), 44 Ohio St.2d 13, 336 N.E.2d 433 ; Conalco v. Bd. of Revision (1978), 54 Ohio St.2d 330, 376 N.E.2d 959 ; Alcoa v. Kosydar (1978), 54 Ohio St.2d 477, 377 N.E.2d 785 ." Episcopal Parish v. Kinney (1979), 58 Ohio St.2d 199, at 201, 389 N.E.2d 847 .

With this standard of review in mind, we find sufficient evidence in the record to support the board's finding that appellant's uses of the property were not primarily religious in nature. Therefore, we hold that real property which is not used primarily for public worship does not qualify for a tax exemption under R.C. 5709.07. ¹

Alternatively, appellant contends that the property is exempt under R.C. 5709.12 and 5709.121. R.C. 5709.12 provides in pertinent part:

" * * * Real and tangible property belonging to institutions that is used exclusively for charitable purposes shall be exempt from taxation. * * * "

R.C. 5709.121 provides that:

"Real property * * * belonging to a charitable or educational institution * * *, shall be considered as used exclusively for charitable * * * purposes * * * if * * *."

In Summit United Methodist Church v. Kinney (1982), 2 Ohio St.3d 72, 442 N.E.2d 1298, appellant contested the Board of Tax Appeal's factual determination that it was not a charitable institution within the purview of R.C. 5709.121. Although the record indicated that appellant was involved in charitable activities, the court held that the record supported the board's finding that appellant was primarily a religious institution and, therefore, not entitled to a tax exemption under R.C. 5709.12 and 5709.121. For the same reason, we find that appellant is not entitled to the exemption.

Accordingly, the decision of the Board of Tax Appeals is affirmed.

Decision affirmed.

WILLIAM B. BROWN, SWEENEY, LOCHER and CLIFFORD F. BROWN, JJ., concur.

HOLMES and JAMES P. CELEBREZZE, JJ., dissent.

JAMES P. CELEBREZZE, Justice, dissenting.

I believe the decision of the Board of Tax Appeals should be reversed as unreasonable and unlawful as it was unsubstantiated by the record. Therefore, I respectfully dissent.

R.C. 5709.07 states in pertinent part:

" * * * [H]ouses used exclusively for public worship, the books and furniture therein, and the ground attached to such buildings necessary for the proper occupancy, use, and enjoyment thereof, and not leased or otherwise used with a view to profit, * * * shall be exempt from taxation."

The purpose of the exemption and the prior holdings of this court dictate that the...