Summary
holding that an organization's restoration of an island to its natural state and continued efforts to preserve the island were in furtherance of charitable purposes and rendered the property exempt
Summary of this case from Francis Small Heritage Trust, Inc. v. Town of LimingtonOpinion
No. 81-258
Decided December 9, 1981.
Taxation — Real property — Exemptions — R.C. 5709.121 — Land used "in furtherance of or incidental to" charitable purpose, when.
APPEAL from the Board of Tax Appeals.
Appellant, Little Miami, Inc., is a non-profit Ohio corporation established for the purpose of preserving the natural and scenic appearance of the Little Miami River and its surrounding area. Appellant seeks a tax exemption for land it owns located along the lower portion of the Little Miami River known as Bass Island.
Prior to appellant's ownership, this land had become a slum-like residential area and was also used as a dumping ground for rubbish and old or deteriorated automobiles. As a condition to appellant's purchase of the land, the seller was required to clear the land of all structures and rubbish. Since obtaining ownership, appellant has not made any improvements to the land. However, it keeps the area clean and supervises its use by the public. Although appellant does not advertise the availability of the land as a park or recreational area, it does not prevent the public from using it. Moreover, appellant has issued a letter of intent to donate the land to the Hamilton County Park District.
The Commissioner of Tax Equalization denied the exemption and the Board of Tax Appeals affirmed.
The cause is now before this court upon an appeal as of right.
Messrs. Taft, Stettinius Hollister, Mr. John P. Williams, Jr., and Mr. William F. Russo, for appellant.
Manley, Jordan Fischer Co., L.P.A., Mr. Timothy M. Burke and Mr. Andrew S. Lipton, for The Nature Conservancy.
Mr. William J. Brown, attorney general, and Mr. James C. Sauer, for appellee.
The issue presented herein is whether appellant is entitled to a tax exemption for Bass Island under R.C. 5709.12 and 5709.121. In Cincinnati Nature Center v. Bd. of Tax Appeals (1976), 48 Ohio St.2d 122, 125, this court described the requirements for a tax exemption under R.C. 5709.121 as follows: "*** [the] property must (1) be under the direction or control of a charitable institution or state or political subdivision, (2) be otherwise made available `for use in furtherance of or incidental to' the institution's `charitable or public purposes,' and (3) not be made available with a view to profit."
Applying this test, the Board of Tax Appeals found that appellant's use of Bass Island was insufficient to show that it was used "in furtherance of or incidental to" appellant's charitable purpose, but that it qualified in all other respects. In reaching this result, the Board of Tax Appeals relied on Holy Trinity Protestant Episcopal Church v. Bowers (1961), 172 Ohio St. 103, 107; wherein this court stated, "*** mere ownership, standing alone, is not sufficient to create a right to tax exemption. Such ownership must be coupled with the purpose, supported by tangible evidence, that the property will be devoted to an actual physical use for the public benefit. ***"
Appellant argues that this is not a case of "mere ownership," but that it uses Bass Island to further its charitable purpose. This charitable purpose is preservation. Appellant caused Bass Island to be restored to its natural state and is working toward its continued preservation. We find that this use is in furtherance of appellant's charitable purpose. Accordingly, the decision of the Board of Tax Appeals is reversed.
Decision reversed.
CELEBREZZE, C.J., W. BROWN, SWEENEY, LOCHER, HOLMES, C. BROWN and KRUPANSKY, JJ., concur.