Opinion
No. 28985
Decided April 15, 1942.
Taxation — Realty owned by veterans' organization not exempt — Use not exclusively for charitable purposes — Section 2, Article XII, Constitution — Section 5353, General Code.
APPEAL from the Board of Tax Appeals.
East Cleveland Post No. 1500, Veterans of Foreign Wars, is the owner of two sublots located at the corner of Euclid and Catalpa avenues in Cleveland, upon which tract there is a brick building, consisting of two parts, and a separate frame three-car garage. One portion of the brick building is two and a half stories high and houses a kitchen and heating unit in the basement, lobbies, checkroom and toilets on the first floor, meeting rooms and toilets on the second floor and an attic. The other and newer part is a one-story and English basement brick structure, with an entrance and meeting hall on the first floor and a canteen and toilets in the basement, the canteen section consisting of 50 per cent of the one-story portion of the building.
East Cleveland Post No. 1500 applied to the Board of Tax Appeals for an exemption from taxation upon the ground that the property belonged to an institution used exclusively for charitable purposes.
The record before the Board of Tax Appeals contains the following purposes of the organization as set forth in its constitution: "The objects of this association are fraternal, patriotic, historical, and educational; to preserve and strengthen comradeship among its members; to assist worthy comrades; to perpetuate the memory and history of our dead, and to assist their widows and orphans; to maintain true allegiance to the government of the United States of America, and fidelity to its Constitution and laws; to foster true patriotism; to maintain and extend the institutions of American freedom; and to preserve and defend the United States from all her enemies whomsoever."
The only witness submitting testimony for the consideration of the Board of Tax Appeals was the commander of the post. He testified that the ladies' auxiliary and drum corps did not pay rent because they devote all their work to Red Cross and charity, and that outside organizations, such as parent-teachers' associations, and the community are permitted to use the meeting room over the canteen, free of charge, but no use for political purposes is permitted. However, he testified that the canteen was necessary to create a club atmosphere, that the purpose of the canteen was for friendship and sociability among the members, that it was a closed club not open to the public or anyone not a member and that nonmembers attending meetings of outside organizations are not allowed to go into the canteen except as guests.
The Board of Tax Appeals found that the property was not used exclusively for charitable purposes and accordingly denied the application for exemption. Direct appeal was perfected to this court.
Messrs. Wilkin, Krewson Ammerman, for appellant.
Mr. Thomas J. Herbert, attorney general, and Mr. Perry L. Graham, for appellees, Board of Tax Appeals and others.
Mr. Frank T. Cullitan, prosecuting attorney, for appellee, John A. Zangerle, auditor of Cuyahoga county.
All parties agree that the land and building involved are owned by a corporation not for profit.
Section 2, Article XII of the Constitution, provides that "lands and improvements thereon shall be taxed by uniform rule" and that "general laws may be passed to exempt * * * institutions used exclusively for charitable purposes * * *."
Section 5353, General Code, enacted pursuant to that authorization, provides that "property belonging to institutions used exclusively for charitable purposes, shall be exempt from taxation."
This court is not unmindful of the high purposes of the organization as set forth in its constitution and that the property of the post is permitted to be used by outside organizations for equally laudable activities.
However, the Board of Tax Appeals was confronted with the foregoing constitutional and statutory restrictions relating to a use exclusively for charitable purposes. The record before us for review does not support a use exclusively for charitable purposes.
The decision of the Board of Tax Appeals is reasonable and lawful (Section 5611-2, General Code) and is therefore affirmed.
Decision affirmed.
WEYGANDT, C.J., TURNER, WILLIAMS, MATTHIAS, HART and ZIMMERMAN, JJ., concur.
BETTMAN, J., not participating.