Young Women's Christian Ass'n v. Baumann

• Decision Date: 05 July 1939
• Docket Number: 36298
• Citation: 130 S.W.2d 499,344 Mo. 898
• Parties: Young Women's Christian Association, a nonprofit Corporation; J. Ray Carter, J. Lionberger Davis, L. W. Childress, Woodson K. Woods, George B. Logan, John Talbot, Hord Hardin and Frank M. See, as Trustees of the Young Women's Christian Association, a nonprofit Corporation, Appellants, v. William F. Baumann, Collector of the City of St. Louis
• Court: Missouri Supreme Court

130 S.W.2d 499

344 Mo. 898

Young Women's Christian Association, a nonprofit Corporation; J. Ray Carter, J. Lionberger Davis, L. W. Childress, Woodson K. Woods, George B. Logan, John Talbot, Hord Hardin and Frank M. See, as Trustees of the Young Women's Christian Association, a nonprofit Corporation, Appellants, v. William F. Baumann, Collector of the City of St. Louis

No. 36298

Supreme Court of Missouri

July 5, 1939

Appeal from Circuit Court of City of St. Louis; Hon. Eugene J Sartorius, Judge.

Reversed and remanded (with directions).

Cobbs Logan, Roos & Armstrong and Williams, Nelson & English for appellants.

(1) The constitutional and statutory provisions exempting property from taxation when used "exclusively for religious worship, for schools or for purposes purely charitable" were adopted not merely as an act of grace on the part of the State, but in State interest. Book Agents of M. E. Church So. v. Hinton, 92 Tenn. 190, 21 S.W. 322; Travelers' Ins. Co. v. Kent, 151 Ind. 349, 50 N.E. 563; Carl Zollmann, Amer. Law of Charities, sec. 693, p 465. The services rendered at the headquarters building by appellant association during the years 1932 to 1935, inclusive, were purely "charitable" within the legal contemplation of that term. Historical Society v. Academy of Science, 94 Mo. 466; State ex rel. v. Academy of Science, 213 Mo.App. 216; Vidal v. Girard, 43 U.S. 149, 11 L.Ed. 205; Newton v. Newton Burial Park, 326 Mo. 901, 34 S.W.2d 118; In re Rhan's Est., 316 Mo. 492, 291 S.W. 120. (2) The courts of this State have never been over anxious to apply a rule of strict construction of the statutory and constitutional provisions relating to tax exemption so as to impose burdens upon religious, charitable and educational institutions. State ex rel. v. Trustees of William Jewell College, 234 Mo. 308; State ex rel. v. Johnston, 214 Mo. 663; Washington University v. Baumann, 108 S.W.2d 411. (3) The "exclusive character" of the use of property owned by nonprofit organizations and used primarily for religious, educational and charitable purposes is not lost, because such organizations use the property "incidentally" or "secondarily" for money raising, nonprofit purposes in order to further the religious, educational and charitable purpose of such organizations. State ex rel. Alexian Brothers' Hospital v. Powers, 10 Mo.App. 267, affirmed 74 Mo. 746; North St. Louis Gymnastic Society v. Hudson, 12 Mo.App. 344, affirmed, 85 Mo. 32; State ex rel. v. Johnston, 214 Mo. 668; State ex rel. v. Trustees, William Jewell College, 234 Mo. 310; Turnverein v. Hagerman, 232 Mo. 703. Such is the preponderating weight of authority of other jurisdictions having similar statutory or constitutional provisions. Sisters of the Third Order of St. Francis v. Board of Review, 231 Ill. 397, 83 N.E. 273; Congregational Sunday School Society v. Board of Review, 290 Ill. 108, 125 N.E. 10; School of Domestic Arts & Sciences v. Carr, 322 Ill. 562, 153 N.E. 672; Brewer v. Amer. Missionary Assn., 52 S.E. 804; Linton v. Lucy Cobb Institute, 45 S.E. 53; Morgan v. Presbyterian Church, 101 S.W. 338; Episcopal Academy v. Philadelphia, 25 A. 55; Appeal Tax Court v. St. Peters Academy, 50 Md. 321; Trustees of Ky. Female Orphans School v. Louisville, 36 S.W. 921; Newton Center Woman's Club v. Newton, 154 N.E. 846; Dominican Sisters v. St. Colomb Parish, 45 K. B. 101; Davis v. Camp Meeting Assn., 49 N.E. 401; Preachers' Aid Society v. Jacobs, 32 S.W. 343; Charter Oak Council v. New Hartford, 185 A. 575; Tulsa County v. Sisters of the Sorrowful Mother, 283 P. 984; State v. Henry Longstreet Foundation, 269 N.W. 419; Brattleboro Retreat v. Brattleboro, 173 A. 209; Warren County v. Vicksburg Hospital, 163 So. 382; Denver Turnverein v. McGlone, 15 P.2d 709; House of Good Shepherd v. Board of Equalization, 203 N.W. 632; Lutheran Hospital Assn. v. Baker, 167 N.W. 148; Philadelphia v. Women's Christian Assn., 17 A. 475; Philadelphia v. Pennsylvania Hospital, 25 A. 1076; Hot Springs School Dist. v. Sisters of Mercy, 106 S.W. 954; New England Sanitarium v. Stonham, 91 N.E. 385; State ex rel. Cunningham v. Board of Review, 26 So. 872; Donohugh's Appeal, 86 Pa. 306; Cleveland Library Assn. v. Pelton, 36 Ohio St. 253. (4) The question as to whether or not it was incumbent upon appellants to apply to the State Tax Commission or the Board of Equalization of the city of St. Louis, or both, prior to the filing of this bill of equity for the abatement of these taxes is not briefed, because it is not before this court. Washington University v. Baumann, 108 S.W.2d 413.

James A. Waechter and Donald Gunn for respondent; Edgar H. Wayman and Andrew J. Reis of counsel.

Appellants' property located at 1411 Locust Street was not tax exempt during the period described in appellants' amended petition, since said property was not, during said period, used exclusively for religious worship, for schools, or for purposes purely charitable. Art. X, Sec. 6, Mo. Const.; Sec. 9743, R. S. 1929; State ex rel. v. Y. M. C. A., 259 Mo. 233, 168 S.W. 580; B. P. O. E. v. Koeln, 262 Mo. 444, 171 S.W. 329; Fitterer v. Crawford, 157 Mo. 51, 57 S.W. 532; Knights of Pythias v. Crawford, 157 Mo. 356, 57 S.W. 1020; Washington University v. Baumann, 108 S.W.2d 403; Laws 1877, p. 393; State ex rel. v. Powers, 10 Mo.App. 263, affirmed 74 Mo. 476; State ex rel. v. Academy of Science, 13 Mo.App. 213; Bishop's Residence v. Hudson, 91 Mo. 67; Odd Fellows v. Crawford, 157 Mo. 41; State ex rel. Y. M. C. A. v. Gehner, 320 Mo. 1172, 11 S.W.2d 33; State ex rel. Y. M. C. A. v. Gehner, 329 Mo. 1007, 47 S.W.2d 776; Y. M. C. A. v. Philadelphia, 187 A. 204; Y. M. C. A. v. Lancaster, 106 Neb. 105, 182 N.W. 593.

Clark, J. All concur, except Hays, J., absent.

OPINION

CLARK

Plaintiffs (appellants), Young Women's Christian Association and the trustees of said Association, filed a bill in equity against defendant (respondent), Collector of the City of St. Louis, seeking to enjoin him from attempting to collect taxes levied in the years 1932 to 1935, inclusive, on real estate owned by appellants, and to remove a cloud on the title to said property created by the tax lien. The decree was adverse to plaintiffs and they have appealed.

Appellants claim that the property is exempt from taxes under the provisions of Article X, Section 6, of the Missouri Constitution, and Section 9743, Revised Statutes 1929 (Mo. Stat. Ann., p. 7863).

The Constitution provides that "lots in incorporated cities . . ., to the extent of one acre, . . . with the buildings thereon, may be exempted from taxation, when the same are used exclusively for religious worship, for schools, or for purposes purely charitable." The statute says that such property shall be exempted.

The question here is whether the property was used exclusively for the purposes aforesaid during the years above mentioned.

The Association was incorporated in 1905 by pro forma decree of the circuit court under the provisions of what is now Article X, Chapter 32, Revised Statutes 1929 (Mo. Stat. Ann., p. 2288), relating to nonprofit associations formed for benevolent, religious, educational and other purposes.

The purpose of the Association, stated in the original charter, is "to stimulate interest in the religious development of young women in the city and vicinity, and to improve intellectual, social and physical conditions for them by means of the association of young women," etc.

There is no serious controversy as to the facts which we summarize as follows:

About the year 1911 the Association erected a building on a lot owned by it at 1411 Locust Street in St. Louis. The lot is 100 feet by 165 feet in extent. The building entirely covers the lot and consists of five stories and a basement. In this building the general activities of the Association are conducted and no part of the building is rented or leased for commercial purposes, except that in 1932 and 1933 some rooms were rented for temporary lodging. There were 24 bedrooms which were rented for a small charge to women transients until they could find another place to stay. The rooms were also used to care for destitute girls without funds.

The Association is supported chiefly by donations. No officer or director receives any compensation, except there is a paid secretary, assistants and instructors, numbering about twenty women, and, of course, those employed in maintaining the building, operating the elevators, etc., receive wages. In general, the work of the Association is achieved by individual consultation with girls on spiritual, physical or economic problems. Several thousand girls annually ask aid in securing employment and work is found for many. Temporary lodging, food and sometimes financial help is given to destitute girls without charge. Girls are formed into clubs and training given for various types or work. The girls meet for instruction and social enjoyment. Sometimes meals are served at cost, prepared by girls training for cooking or waitress work. Religious programs and devotional services are held, also classes in English, music, art and clerical work. If an instructor is paid, a fee is charged, otherwise not. There is a swimming pool, gymnasium, sun lamps, etc., and a small charge is made for the use of them. Instruction is given in swimming, dancing, fencing and other sports. In 1932 a cafeteria was conducted, but discontinued early in 1933. Late in 1933 a lunch club was formed to serve noonday luncheons to members and their guests, about one hundred per day being served. No advertisements, either in newspapers or on the outside of the building, indicated that lunches or food might be had. Charges for meals and for other services where charges were made, seem to have been fixed on a basis to cover the cost. ...