Opinion
No. 37667
Decided May 22, 1963.
Taxation — Exemption — Real property belonging to institution used exclusively for charitable purposes — Nonprofit corporation disseminating principles concerning human progress and welfare.
APPEAL from the Board of Tax Appeals.
The appellant, The American Humanist Association, Inc., a corporation not for profit and organized under the laws of Illinois, filed with the Board of Tax Appeals an application for exemption from taxation of its real property located in Ohio. As stated in its articles of incorporation, its purposes are to study and extend educationally principles and ideals concerning human progress, values and welfare, and, in connection therewith, to publish magazines, books, pamphlets and other forms of literature, and to engage lecturers in order that the purposes of the association may be accomplished.
The subject real estate is improved with a building which is used for the offices and national headquarters of the association. The building consists of office, conference and storage rooms and an area where multilithing, addressing and mailing are done. Some of the association's printing is done by outside commercial printers. Editorial work on its literature is done in the building, and the affairs of the national organization are there administered. The literature of the association, dealing with educational and charitable matters, is disseminated from the building. The building is occasionally used for meetings of high-school and other nonprofit groups, without charge.
The association's activities are admittedly charitable. Its membership is open to all persons. Some of its literature is sold, some given away and some distributed at cost or less. Receipts from the sale of literature go into the printing fund. The association does not engage in commercial printing or any other competitive commercial activities. The association sustains an annual loss of $4,300, which is made up by special contributions and bequests.
The Board of Tax Appeals found that the property was not "used exclusively for charitable purposes" within the meaning of Section 5709.12, Revised Code, and denied the application for exemption.
An appeal from the decision of the Board of Tax Appeals brings the cause to this court for review.
Messrs. Wright, Harlor, Morris, Arnold Glander and Mr. Charles B. English, for appellant.
Mr. Mark McElroy and Mr. William B. Saxbe, attorneys general, Mr. John J. Lokos and Mr. Daronne R. Tate, for appellees.
This court is of the opinion that the subject property is being used by appellant, a charitable institution, "exclusively for charitable purposes" and by virtue of Section 2 of Article XII of the Constitution and Section 5709.12, Revised Code, is exempt from taxation.
The decision of the Board of Tax Appeals is reversed on authority of American Issue Publishing Co. v. Evatt, Tax Commr., 137 Ohio St. 264, and Hubbard Press v. Glander, Tax Commr., 156 Ohio St. 170.
Decision reversed.
TAFT, C.J., MATTHIAS, O'NEILL, GRIFFITH and GIBSON, JJ., concur.
ZIMMERMAN and HERBERT, JJ., dissent.