1. Sales of Goods by Exempt Organizations
a. Educational Organizations
i. General
ii. Nontaxable Sales
Ala. Act 623 (H.B. 416, 1991). The sales and use tax that would otherwise have been imposed on athletic event receipts may be collected and used by the sponsoring school for school purposes.

In re Judson School, No. (Ariz. Bd. of Tax Appeals Aug. 13, 1991). A private school store operated merely to provide additional services to its students, restricting sales to them and refraining from advertising, was not a business subject to Arizona sales tax.

Md. H.B. 707 (1991). The sale of food is exempt from Maryland sales tax if it is by a school or college (including entities that have contracted with the school or college), or by a church or religious organization, if the sales are educationally related.

Va. S.B. 1504 (1991). A nonprofit organization exempt from federal tax under Code§ 501(c)(3) that conducts art education classes, and that sponsors exhibits and seminars for the public, is exempt from Virginia sales tax.

Va. Comm'r of Rev., Ruling P.D. 91-23 (Mar. 4, 1991). Sales at a fund-raising event of a nonprofit preschool exempt from federal tax are exempt from Virginia sales tax if the sales are not made for resale and if the preschool conducts no more than three fund-raising events per year.

Va. Comm'r of Rev., Ruling P.D. 91-15 (Feb. 20, 1991). Fund-raising sales in Virginia by a foreign nonprofit school, which was exempt under Section 501(c)(3), were exempt.

iii. Taxable Sales
iv. Miscellaneous
In re Advisory Opinion to the Governor, 509 So.2d 292 (Fla. 1987). Sales tax statute exempting sales and leases to religious, educational and other non-profit institutions for transactions in furtherance of their customary non-profit functions did not unconstitutionally discriminate between publications based on content.

b. Religious Organizations
i. General
N.J. Div. of Taxation, Reg. § 18:24-9.11 (1991). Any business sale, service or rental of an exempt organization that competes with a private, nonexempt organization is subject to New Jersey sales tax because such items are not directly related to an exempt purpose.

ii. Nontaxable Sales
Conn. S.B. 2010 (1991). Provision of seasonal parking by a religious or charitable organization is exempt from the Connecticut sales and use tax otherwise imposed on provision of parking space.

The Way International v. Limbach, 50 Ohio St. 3d 76, 552 N.E.2d 908 (1990). Sales by a religious organization that had adherents, followed the Bible, maintained a system of faith and religious goals, and conducted services were exempt from Ohio sales tax, because profits were merely channeled into expansion of the church rather than into lavish salaries or other improper uses.

iii. Taxable Sales
Alex, Tony and Susan Alamo Foundation Inc. v. Ragland, 746 S.W.2d 45 (Ark. 1988). Sales of goods and services to the members of a religious organization by for-profit business of that organization in exchange for the members' work were not exempt from Arkansas sales tax.

In re International Society for Krishna Consciousness of California, Inc., Cal.App.3d , Cal.Rptr. (1990). A religious organization that "gave" its publications to the public in exchange for voluntary contributions rather than a fixed price was subject to California sales and use tax. The court also rejected the argument that paying sales tax actually violated its belief in disseminating its religious literature (although the California appeals court noted that no sales tax was imposed on contributions received from the public). The United States Supreme Court denied review. U.S. , S.Ct. (1991).

In re Lauriat's, Inc., No. TSB-A-91(16)S (N.Y Comm'r of Taxation & Finance Jan. 28, 1991). Sales of Bibles are subject to New York sales tax.

iv. Miscellaneous

c. Other Exempt Organizations
Cal. S.B. 89 (1991). California exempts from sales tax (1) newspapers and periodicals distributed by nonprofit organizations, if the publication is distributed to members at least partly in return for membership fees and if printing costs are less than 10% of membership fees, and (2) newspapers and periodicals published or purchased by organizations exempt from tax under Code§ 501(c)(3), if the organization accepts no commercial advertising, or if it distributes the publication to contributors or to members in return for membership fees.

Tenn. Admin. Register, Rule 1320-5-1-.46 (effective May 1, 1991). A rule imposing sales tax on most magazines while exempting newspapers and certain religious publications was repealed after it was held unconstitutinal by the Tennessee Supreme Court in Newsweek, Inc. v. Celauro and Southern Living, Inc. v. Celauro.

Wash. H.B. 2187 (amending ch. 51, 1991). Auctions by organizations exempt from federal tax under I.R.C. 501(c)(3) ("public benefit organization") are exempt from Washington sales tax.

2. Sales of Services by Exempt Organizations
a. Educational Organizations
Fla. Dep't of Rev., Technical Assistance Advisement No. 91A-030 (July 9, 1991). A college is required to collect Florida sales tax on its licensure of a contractor that provides food service and vending machines because the contractor's services are independently performed and do not constitute management services, which are nontaxable.

In re PICPA Foundation for Education and Research, No. 2530 C.D. 1985 (Pa. Commonw. Ct. Oct. 29, 1991). A nonprofit organization formed for accounting education and research was not exempt from Pennsylvania sales tax because its focus was accounting professionals rather than the public at large.

b. Religious Organizations
Oklahoma Tax Comm'n, Order No. 90-02-09-10 (Feb. 2, 1990). A church that conducted bingo games two times a week in the same place as nonexempt organizations, thereby competing with t8hose organizations, and that made a profit, was not exempt from collecting sales tax.

c. Other Exempt Organizations

3. Exemptions from Sales Tax for Exempt Organizations
a. Educational Organizations
i. General
In re Yale Club of Chicago, No. 1-90-1893 (Ill. Ct. App. July 15, 1991). A nonprofit alumni association that recruited students in the Chicago area for an out-of-state university was not exempt from Illinois sales tax because its activities did not help maintain nationwide academic standards and because recruitment did not benefit the university's educational service.

In re Farmingdale Family of Retirees, No. 806359 (N.Y. Tax Appeals Tribunal Nov. 23, 1990). A nonprofit organization of former school employees was not exempt from New York sales tax because its purpose was primarily social rather than educational.

In re National Federation of Italian-American Societies, Inc., No. 807684 (N.Y. Div. of Tax Appeals, Admin. Law Judge Unit, Jan. 25, 1991). An organization that conducted courses, among many activities, exempt and nonexempt, and that committed a substantial amount of its funds to nonexempt purposes was not exempt from New York sales tax.

ii. Nontaxable Sales
Va. Comm'r of Revenue, Ruling P.D. 90-222 (Dec. 13, 1990). A nonprofit preschool that received federal tax exempt status is exempt from Virginia sales tax if it also meets other criteria for exemption as an educational institution, even though Virginia has no general exemption for nonprofit organizations.

iii. Taxable Sales
Tex. H.B. 11 (1991). Music performances or other amusements not provided solely for educational purposes are not exempt from Texas sales and use tax, even when it is a governmental entity that has contracted with the nongovernmental amusement provider.

b. Religious Organizations
i. General
In re Comptroller of Public Accounts, 34 Tex.A.C. § 3.322 (1991). Organizations that educate and organizations that conduct or sponsor religious services, along with other nonprofit organizations, must prove themselves to be tax-exempt, and organizations are not exempt merely because they incidentally encourage religion or have as their purpose to advance religion generally.

Jesus Revivals, Inc. v. New York State Tax Comm'n, 527 N.Y.S.2d 603, 139 A.D.2d 875 (1988). A religious corporation was not exempt from New York sales tax because two of its principal directors, who were also principal contributors, received free housing and had almost complete authority over the monies of the corporation.

c. Other Exempt Organizations
N.J. Div. of Taxation, Reg. § 18:24-9.11 (effective Dec. 2, 1991). Any business sale, service, or rental of an exempt organization that competes with a private, nonexempt organization is subject to New Jersey sales tax because such items are not directly related to an exempt purpose.

1. Purchases of Building Materials
a. Educational Organizations
Sublette County School District No. 1 v. State Board of Equalization, 770 P.2d 218 (Wyo. 1989). Purchases by contractors building for school districts were not exempt from Wyoming sales tax.

b. Religious Organizations
Fla. Dep't of Rev., Technical Assistance Advisement No. 90A-077 (Dec. 21, 1990). A charitable organization's purchase of building materials was exempt from Florida sales tax even though it made those purchases through a contractor acting as its agent.

In re Goodman Church Builders, Inc., No. A-90-208 (Wy. Bd. of Equalization May 14, 1991). Building supplies purchased by a contractor as agent for a church with church funds were nevertheless subject to Wyoming sales tax because the sales invoices indicated that the contractor rather than the church was the purchaser.

c. Other Exempt Organizations
Fla. Dep't of Rev., No. 90A-077 (Dec. 21, 1991). A charitable organization's purchase of building materials was exempt from Florida sales tax even though it made those purchases through a contractor acting as its agents.

In re Insurance Services Office, Inc., No. TSB-A-91(23)S (N.Y. Comm'r of Taxation & Finance Feb. 22, 1991). Materials purchased by a taxpayer leasing premises from an exempt organization for the purpose of improving the organization's real property are exempt from New York sales and use tax.

Bill Roberts, Inc. v. MacNamara, 527 So.2d 459 (La. App. 1988). Purchases by a contractor building for the government were not exempt from Louisiana sales tax because the contractor did not prove that it was an agent of the government in making the purchases and was thus considered the consumer.

Memorial Hospital v. Department of Revenue & Taxation, 805 P.2d 276 (Wyo. 1991). A contractor that bought and sold building materials to an exempt organization, and then installed those materials for the organization was subject to Wyoming sales tax.

2. Purchases of Program-Use Equipment & Supplies
a. Educational Organizations
National Collegiate Athletic Association v. Department of Revenue, 781 P.2d 912 (Minn. 1990). The NCAA is an educational institution.

Minn. S.B. 339 (amending Code ch. 40, 1991). Purchases of property, food, and lodging by a nonprofit educational organization that uses the items purchased for athletic programs for the mentally retarded are exempt from Minnesota sales tax.

Custom Management Corp. v. State Tax Commission, 148 A.D.2d 919, 539 N.Y.S.2d 550 (1989). Purchases by an organization that managed food service and facilities at an educational institution were not exempt from New York sales tax because the food service organization was actually independent of the educational institution, and was not its agent when making purchases. exempt from Kansas sales tax on its purchases.

Va. Comm'r of Rev., Ruling P.D. 91-15, (Feb. 20, 1991). Purchases within Virginia by a foreign nonprofit school exempt from federal tax under Code501(c)(3) with its own funds and for its own use, were exempt from Virginia sales tax, as were fund-raising sales by that school.

b. Religious Organizations
In re Hope Evangelical Lutheran Church, No. 269/89-1300 (Iowa S. Ct. Nov. 21, 1990). Imposition of Iowa use tax on purchases by an Iowa church from out-of-state suppliers did not violate the free exercise clause or the freedom of the press because the tax was not discriminatory, and the burden was small. Furthermore, the church's religious instruction did not qualify it for an exemption as an educational institution because its instructors were not required to meet educational requirements, and it provided no formal guidelines or a curriculum.

The Way International v. Limbach, 50 Ohio St. 3d 76, 552 N.E.2d 908 (1990). Purchases by a religious organization that had adherents, followed the Bible, maintained a system of faith and religious goals, and conducted services were exempt from Ohio sales tax, and sales by that organization were also exempt, even though above cost, because profits were merely channeled into expansion of the church rather than into lavish salaries, etc.

c. Other Exempt Organizations
Ark. Act 910 (H.B. 1799, 1991). The purchases of new motor vehicles by nonprofit organizations to perform contracts with the Department of Human Services or with funds from the Urban Mass Transit Administration are exempt from Arkansas sales tax.

In re Vocational Development Center, Inc., No. 90-6-30-0533 (Iowa Dep't of Rev. & Finance, Nov. 26, 1990). Purchases made solely for the use of training programs for the developmentally disabled are exempt from Iowa sales tax.

Wash. H.B. 2187 (ammending ch. 51, 1991). Auctions by organizations exempt from federal tax under I.R.C. 501(c)(3) ("public benefit organization") are exempt from Washington sales tax.

3. Exemptions from Sales & Use Tax for Purchases
a. Educational Organizations
Maryland State Bar Association v. Comptroller of the Treasury, 1990 W.L. 135004 (Md. Tax Ct. 1990), on remand from 314 Md. 655 (Md. App. 1988). The Maryland Bar was not exempt from sales tax on purchases as a "nonprofit religious, charitable or educational institution or organization."

b. Religious Organizations
Conn. Dep't of Rev. Services, Special Notice TSSN-42 (Jan. 1991). A charitable or religious organization is exempt from paying Connecticut sales tax on purchases only if the purchases are for the direct use of the organization and made with organization funds.

In re Church of Pan v. Norberg, 507 A.2d 1359 (R.I. 1986). Purchases by an ostensible church, which was actually organized for the preservation of the environment was not exempt from Rhode Island sales tax.

c. Other Exempt Organizations
State v. S.P.A. Wire & Cable, Inc., 506 So.2d 345 (Ala. Civ. App. 1987). Purchase by a for-profit organization of cable and wire, which it ended up donating to a tax-exempt educational organization, was not subject to Alabama sales tax.

4. Other
Tex. Comptroller of Public Accounts, Hearing No. 26,968 (June 20, 1991). A taxpayer was liable for Texas sales tax on computer equipment that it loaned to an educational organization in exchange for the award of a printing contract, rather than donating the equipment.

1. Educational Organizations
All fifty states provide tax exemptions for educational organizations. They apply to colleges and universities, and generally apply to other organized schools.

2. Religious Organizations
a. Property Tax Exemptions for Churches
All fifty states recognize some form of property tax exemption for religious organizations, and the Supreme Court has upheld the constitutionality of such exemptions. See Walz v. Tax Commission, 397 U.S. 664, 676 (1970). Most states exempt real and personal property used exclusively for religious purposes. E.g., Ala. Code § 40-9-1; Alaska Stat. § 29.53.020; Conn. Gen. Stat. § 12-81; Ill. Rev. Stat. ch. 120, para. 500.2; Kan. Stat. Ann. § 79-201; Miss. Code Ann. § 27-31-1; Mo. Rev. Stat. § 137.100; Neb. Rev. Stat. 77-202; Okla. Stat. Ann. title 68, § 2405.

Some states exempt only houses of religious worship. E.g., Ark. Stat. Ann. § 84-206; Fla. Stat. Ann. § 196; Ga. Code § 48-5-41; Mass. Gen. Laws Ann. ch. 59, § 5; Mich. Stat. Ann. § 211.7; Mont. Rev. Codes Ann. §§ 15-6-201 to 15-6-209; N.C. Gen. Stat. § 105-278; Pa. Stat. Ann. title 72, § 5020-204; R.I. Gen. Laws § 44-3-3.

b. Property Tax Exemptions for Other Religious Organizations
Religious camp grounds, property used for publishing activities, and denominational administrative offices have been held exempt under statutes exempting property used exclusively for religious purposes. E.g., Order Minor Conventuals v. Lee, 409 N.Y.S.2d 667 (1978); Christian Reformed Church v. City of Grand Rapids, 303 N.W.2d 913 (Mich. 1981); Kansas CityDistrict Advisory Board, Church of the Nazarene v. Board of County Commissioners, 620 P.2d 344 (Kan. 1980). On the other hand, parochial schools, credit unions, recreational facilities, bookstores, and retirement homes have been denied exemption under such statutes. E.g., Immaculate Heart of Mary High School, Inc. v. Anderson, 526 P.2d 831 (Idaho 1974); Central Credit Union v. Comptroller of the Treasury, 220 A.2d 568 (Md. 1966); Peninsula Covenant Church v. County of San Mateo, 156 Cal. Reptr. 431 (1979); Berean Fundamental Church Council, Inc. v. Board of Equalization, 183 N.W.2d 750 (Neb. 1971); Evangelical Lutheran Good Samaritan Society v. County of Gage, 151 N.W.2d 446 (Neb. 1967).

Camp grounds, denominational administrative offices, religious bookstores, and church-operated retirement homes have been denied exemption under statutes exempting houses of religious worship. E.g., Davies v. Meyer, 541 S.W.2d 827 (Tex. 1976); Leggett v. Macon Baptist Association, Inc., 205 S.E.2d 197 (Ga. 1974); Swearingen v. City of Texarkana, 596 S.W.2d 157 (Tex. 1979); Retirement Ranch, Inc. v. Curry County Valuation Protest Board, 546 P.2d 1199, cert. denied, 549 P.2d 284 (N.M. 1976).

Many states apply the "partial exemption" doctrine, granting a partial exemption to property that is used in part for exclusively religious purposes, based upon the percentage of use that is devoted to religious purposes. E.g., Independent Church of the Realization of the Word of God, Inc. v. Board of Assessors, 437 N.Y.S.2d 435 (1981).

1. Real Property Owned and Used for Exempt Purposes by Exempt Organizations
a. Educational Organizations
i. Land Uses and Exclusive Use Requirements
Metropolitan Dade County v. Miami-Dade County Community College Foundation, Inc., 545 So.2d 324 (Fla. App. 1989). A community college foundation was not an "educational institution" under Florida law, but property owned by the foundation could have been exempt from Florid property tax if the foundation actually used the property for an educational purpose. However, the property was not so used. (Under more recent Florida law, organizations which directly support educational institutions, like foundations, are considered educational institutions.)

J.A.P. Title Holding Corp. v. Roberts, 258 Ga. 519, 371 S.E.2d 861 (1988). The property of a trade school was exempt from Georgia ad valorem property tax because the school was considered a "seminary of learning".

In re Board of Education of Groveport Madison Local Schools, Nos. 89-E-39, 89-E-40, 89-E-41, & 89-E-42 (Ohio Bd. of Tax Appeals Nov. 29, 1991). Vacant land originally purchased by a school for the purpose of developing additional school offices, and instead used for physical education and as a land laboratory, was exempt from Ohio property tax because the land had never been used for nonexempt purposes.

ii. Housing
Knox College v. Department of Revenue, 169 Ill. App.3d 832, 523 N.E.2d 1312 (1988). Fraternity houses owned by a college were exempt from Illinois property tax because those houses were considered to be used primarily by the college for educational purposes, and a vacant lot owned by the college, used for student recreation, and surrounded by other tax exempt parcels, was also exempt from Illinois property tax.

Friends School v. Supervisor of Assessments, 314 Md. 194, 550 A.2d 657 (Md. App. 1988). A building on property of a private educational institution which a building superintendent of the institution used as a residence was not subject to Maryland property tax merely because the residence was not the site of the actual academic activities.

iii. Commercial Activities
In re Altrusa Day Nursery, Inc., No. 103230 (Mich. Tax Tribunal Jan. 29, 1991). A nonprofit preschool exempt from federal tax was exempt from Michigan property tax even though its participants were required to pay fees, which fees did not cover the costs of the preschool.

Director of Revenue v. St. Johns Regional Health Center, 779 S.W.2d 588 (Mo. 1989). The operation of an educational health facility by an educational institution was exempt from Missouri property tax because there was no evidence that the health facility was similar to commercial health facilities, and the purpose of the facility was not to compete.

iv. Miscellaneous

San Marcos Water District v. San Marcos Unified School District, 42 Cal.3d 154, 720 P.2d 935 (1986). A school district was not subject to a California special assessment for a sewer capacity right.

David Rankin, Jr. Technical Institute v. Boykins, No. 58312, 1991 W.L. 6258 (Mo. App. 1991). An institute that provides manual and mechanical trade education is exempt from state property taxes, when it is exempt from other state and federal taxes.

Bethphage Community Services, Inc., v. County Board, 221 Neb. 886, 381 N.W.2d 166 (1986). Property used to operate group homes for the developmentally disabled was exempt from Nebraska property tax as an educational use.

S.D. S.B. 9 (1991). Property owned by an educational organization is exempt from South Dakota property tax only if the organization is accredited.

Wyoming Valley Montessori Assoc. v. Board of Assessment Appeal, 11010 Pa. Commonw. 458, 532 A.2d 931 (1987). Property owned by a Montessori School was not exempt from Wyoming property tax as a "purely public charity."

b. Religious Organizations
i. Land Uses and Exclusive Use Requirements
Cal. H.B. 1785 (amending ch. 879, 1991). The cost of constructing or rehabilitating new or existing property that will be used exclusively for religious or charitable purposes is exempt from California property tax, but tax will later be imposed if the construction is cancelled or the property is not used for an exempt purpose for some other reason.

Board of Tax Assessors v. Atlanta Baptist Association, Inc., 381 S.E.2d 419 (Ga. App. 1989). Property owned by a religious organization was exempt from Georgia ad valorem taxes even though the organization charged fees for the use of recreational facilities on the property, when those facilities were closely connected with the religious activities that were the primary use of the property.

St. George Antiochian Orthodox Christian Church v. Aggarwal, 83 Md. App. 599, 576 A.2d 224 (1990). Property owned by a church that did not apply for exemption from Maryland property tax was not exempt, and after the sale of the property (after notice of the sale which was not fraudulent), the church was not exempt from the requirement that it exercise its right of redemption within one year.

In re Worley, 93 N.C. App. 191, 377 S.E.2d 270 (1989). Property held by a church for future use was exempt from North Carolina property taxes, when the church currently used the property for recreation, and as a spiritual retreat with excess acreage serving as a barrier against surrounding industrial areas.

ii. Housing and Parsonage Exemptions
Illinois Conference of the United Church of Christ v. Department of Revenue, 165 Ill. App.3d 200, 518 N.E.2d 755 (1988). The entire property owned by a religious organization and used by that organization for religious retreats was exempt from Illinois property tax including the home of the caretaker.

Evangelical Alliance Mission v. Department of Revenue, 164 Ill. App.3d 431, 517 N.E.2d 1178 (1987). An apartment building owned by a missionary organization and used by that organization to house its missionaries who were on furlough was exempt from Illinois property tax as a parsonage.

Benedictine Sisters of the Sacred Heart v. Department of Revenue, 155 Ill. App.3d 325, 508 N.E.2d 470, 108 Ill. Dec. 309, (1987). A parcel of convent property containing caretakers' residences was not used exclusively for religious purpose and thus was not exempt from property tax.

Le Sea Broadcasting Corp. v. State Board of Tax Comm'rs, 525 N.E.2d 637 (Ind. Tax 1988). The statutory limit on the amount of acreage that may be exempt from Indiana property tax applies to religious corporations. Apartments owned by a religious corporation were necessary to effectuate the corporation's purpose and were therefore exempt from Indiana property tax, where the apartments were occupied by persons engaged in that purpose.

Indiana Association of 7th-Day Adventists v. State Board of Tax Comm'rs, 512 N.E.2d 936 (Ind. 1987). A building used by religious group to house its teaching ministers did not qualify as a parsonage; the case was remanded for determination whether building did qualify under an alternate exemption as a building used for religious purposes.

In re Yeshivah Shearith Hapletah, No. 62142 (N.Y. S.Ct., App.Div., Apr. 11, 1991). Shelter at a Jewish religious camp used by those involved with the camp was considered to be exclusively used for religious purposes and was thus exempt from New York property tax.

Riverview Place, Inc. v. Cass County, 448 N.W.2d 635 (N.D. 1989). A nursing home operated by a religious organization was not exempt from property tax, when it did not seek a religious or nursing home exemption.

Washington County v. Department of Revenue, 11 Or.Tax 251, 1989 W.L. 92058 (1989). A church parsonage was not listed in the statutory exemptions from property tax.

Utah State Tax Comm'n, Rule R884-24-40P (1991). Clergy residences, including monasteries are deemed used exclusively for religious purposes and thus exempt from Utah property tax if the property is owned by a religious organization, the residence is actually occupied by clergy (and only that part occupied by the clergy and family is exempt), and the religious organization pays the expenses of the property.

iii. Commercial Activities
iv. Worship Requirement
In re Coshocton First Church of the Nazarene, No. 89-J-319 (Ohio Bd. of Tax Appeals Dec. 7, 1990). A church building used by church groups for religious classes, meetings, athletic activities and other functions, and its basement, were exempt from Ohio property tax despite the statutory requirement that exempt property be used exclusively for public worship.

Order of Franciscan Brothers v. Ford Property Assessment, Appeals and Review, 111 Pa. Commonw. 524, 534 A.2d 568 (1987). Property used by a religious order as missionary headquarters was exempt from Pennsylvania property tax because the order's religious work benefited an indefinite number of people and was therefore a "purely public charity" even though the work was purely religious.

General Association Branch Davidian 7th-Day Adventists v. McClellan County Appraisal District, 715 S.W.2d 391 (Tex. App. 1986). Property owned by a religious organization and used as an animal preserve and an area for exercise and education of members of the organization was not an "actual place of worship" and thus was not exempt from Utah ad valorem tax.

Grady v. Housman, 509 So.2d 1316 (1987). Land used more than incidentally for religious activities was exempt from property tax.

v. Miscellaneous
Foundation for "A Course in Miracles" v. Theodore, No. 62233 (N.Y. Sup.Ct., App. Div., Apr. 11, 1991). A religious organization that had no relation to an organized religion and no formal structure typically associated with organized religion, and that educated persons about three books allegedly "channeled from Jesus," was exempt from New York property tax.

c. Other Exempt Organizations
i. Healthcare
Dallas County Appraisal District v. The Leaves, Inc., 742 S.W.2d 424 (1987). A nursing home was exempt from ad valorem tax as a purely public charity whose assets were pledged for charitable functions.

Utah County v. Intermountain Health Care, 709 P.2d 265 (Utah 1985). Utah nonprofit hospitals are not entitled to property tax exemption as charities.

Immanuel, Inc. v. Board of Equalization, 222 Neb. 405, 384 N.W. 266 (1986). Property owned by a hospital, upon which it operated a daycare center for its employees, was exempt from Nebraska property tax because the daycare center alleviated the hospital's staffing shortage and was thus reasonably necessary to the hospital's operation.

ii. Miscellaneous
Ariz. H.B. 2188 (amending Code ch. 77, 1991). Arizona property tax exempts property and improvements not intended for the financial benefit of any organization or individual or benefitting religious or charitable causes (among others).

Grace Episcopal Church v. City of Madison, 129 Wis.2d 331, 385 N.W.2d 200 (Wis. App. 1986). The exemption from Wisconsin property taxes of certain religious institutions did not protect those institutions from a special assessment for the maintenance of a mall.

MAPCO Ammonia Pipeline, Inc. v. State Board of Equalization & Assessment, Neb. , N.W.2d (July 10, 1991). All challenged exemptions from property taxes were invalidated as in conflict with the equalization and uniformity requirements. While the challenged exemptions were for agricultural machinery, business inventory, and farm products, the dissent noted that the holding would invalidate property tax exemptions for charities.

2. Real Property Owned and Used for Income Tax Exempt Purposes, but Not Property Tax Exempt Purposes, by Exempt Organizations

a. Educational Organizations
i. Land Uses and Exclusive Use Requirements
City of Fayetteville v. Phillips, 811 S.W.2d 308 (Ark. 1991). The construction of an arts center by two universities was not exempt from Arkansas ad valorem tax when there had been no public use of the property yet, and when there were plans to charge fees for private use by individuals and sometimes to bar the public.

Anderson Ranch Art Foundation v. Property Tax Administrator, 729 P.2d 992 (Colo. App. 1986). An art center owned by an educational organization was not exempt from Colorado property tax when it was used partially as a residence and the statute disqualified residential property.

Presidents & Fellows of Middlebury College v. Town of Hancock, 147 Vt. 259, 514 A.2d 1061 (1986). Property owned by a college but used primarily for public recreational purposes was not exempt from Vermont property tax.

ii. Required Comparability to Public Schools
Winona School of Professional Photography v. Department of Revenue, 211 Ill. App.3d 565, 570 N.E.2d 523 (1991). Since the burden of proving that one is exempt from Illinois property tax is upon the one seeking it, a photography school that offered one week courses did not duplicate Illinois public education, was therefore not a "school" for exemption purposes, and was not exempt.

American College of Chest Physicians v. Department of Revenue, 202 Ill. App.3d 59, 559 N.E.2d 774 (1990). Property owned by an organization of physicians that offered some continuing medical education courses was not exempt from Illinois property taxes because the education did not duplicate education offered by Illinois or that would have been offered by Illinois in the absence of the organization.

iii. Commercial Activities
Iowa Link Foundation v. Board of Review, 387 N.W.2d 377 (Iowa App. 1986). Property owned by a foundation that operated a student housing project next to a community college was not exempt from Iowa property tax, because the housing project was profitable and did not otherwise distinguish itself from commercial housing centers by offering gratuitous services.

iv. Miscellaneous
b. Religious Organizations
i. Land Uses and Exclusive Use Requirements
ii. Housing
iii. Commercial Activities
Supervisor of Assessments v. Asbury Methodist Home, Inc., 313 Md. 614, 547 A.2d 190 (Md. App. 1988). Property owned and used by a religious organization to provide housing to the elderly was not exempt from Maryland property tax, when residents were required to make substantial financial commitments, and were screened to ensure that their finances and health would allow them to keep those commitments.

Scripture Union v. Deitch, 572 A.2d 51 (Pa. Commonw. 1990). The property of a Bible study guide publisher was not exempt from Pennsylvania property tax because the publisher did not prove that it donated a substantial part of its services, that it had no private profit motive, and that it relieved the government of part of its duties.

iv. Worship Requirement
Special Force Ministries v. County of Carver, No. 88-23902, 1989 W.L. 28956 (Minn. Tax 1989). Property of an organization that operates, out of religious motivation, a home for mentally handicapped is not exempt from Minnesota property tax, when the organization is neither a church nor the agency of a church.

Christian Church of Ohio v. Limbach, 53 Ohio St.3d 270, 560 N.E.2d 199 (1990). The property of the regional headquarters of a church, at which no public worship took place, was not exempt from Ohio property tax.

v. Miscellaneous
Congregation Zemach David v. County of Rockland, 558 N.Y.S.2d 702 (Sup. Ct. App. 1990). A county could not obtain a refund of taxes on property acquired by the county from a Jewish congregation and then officially owned by the county after the congregation's redemption because of the county's failure to deed the property back, even though the property might have qualified for exemption.

c. Other Exempt Organizations

3. Real Property Owned but Not Used for Exempt Purposes by Exempt Organizations

a. Educational Organizations
i. Land Uses and Exclusive Use Requirements
Indiana University Foundation v. State Board of Tax Comm'rs, 527 N.E.2d 1166 (Ind. Tax 1988). An apartment building used in its entirety by a university foundation to house faculty employees and students was exempt from Indiana property tax, but only the percentage of the property to which the foundation had legal title.

S.D. S.B. 7 (1991). Property is not exempt if it is not occupied or used directly for an organization's primary charitable purpose, and a charitable organization, if an educational association, must be an association of accredited schools.

ii. Housing
Supervisor of Assessments v. Friends School, 67 Md. App. 508, 508 A.2d 514 (1986). A caretaker's residence on property owned by a religious educational organization was not exempt from Maryland property tax because the uses of the residence did not directly relate to the educational goals of the organization.

iii. Commercial Activities
Sebastian County v. Educare Centers, 296 Ark. 538, 758 S.W.2d 413 (1988). Property owned by a schools (or a daycare) was not exempt from Arkansas property tax because the school was operated for a profit.

Church Contribution Trust v. Mendham Borough, 541 A.2d 249 (N.J. Super. App. 1988). Property owned and used by a church trust for counseling and child development activities, at less than prevailing rates, was not exempt from New Jersey property tax because nothing separated the services from private services, but not because of the mere possibility that future nonexempt services might be provided.

American Society for Metals v. Limbach, 59 Ohio St. 3d 38, 569 N.E.2d 1065 (1991). Property used by a metals research corporation was not

exempt from Ohio property tax when the corporation attempted to operate for a profit and when its educational programs were a minimal part of its activities, were not accredited, and involved self-education rather than teaching.

iv. Miscellaneous
American Association of Cereal Chemists v. County of Dakota, 454 N.W.2d 912 (Minn. 1990). The property of organizations dedicated to advancing the scientific knowledge of cereals, and that offered short courses and published materials on the subject, was not exempt from Minnesota property taxes.

b. Religious Organizations
i. Land Uses and Exclusive Use Requirements
Mont. S.B. 85 (1991). The Montana property tax exemption applies only to property that is owned by a purely public charity and used directly for purely public charitable purposes. A purely public charity is one that is exempt from federal tax and that operates through contributions, grants, and special fund raising activities.

Kopsombut-Myint Buddhist Center v. State Board of Equalization, 728 S.W.2d 327 (Tenn. App. 1986). Property held in trust by a joint venture for a temple was exempt from Tennessee property tax, and even the part of the property which was not used was exempt since it was not used for non-exempt purposes.

ii. Housing
Our Savior Lutheran Church v. Department of Revenue, 204 Ill. App.3d 1055, 562 N.E.2d 1198 (1990). A parsonage and accompanying carport left temporarily vacant due to the pastor's retirement was nevertheless exempt from Illinois property tax.

Golden Brit of God v. Department of Revenue, 300 Or. 479, 713 P.2d 605 (1988). Property owned by a religious organization was not exempt from Oregon property tax where the property was not reasonably necessary for the organization's religious purpose because the organization did not demand that its members live in cloistered residence (since some members lived outside the property), and because the property was not used exclusively for the organization's religious purpose since the members pursued communal living arrangements that were unnecessary to those purposes.

In re Metropolitan Government of Nashville & Davidson County, S.W.2d (Tenn. Sept. 3, 1991). A Tennessee law, which provided that parsonages were per se exempt from property taxes as used purely and exclusively for religious purposes, was held unconstitutional because it barred factual inquiry into whether the parsonage was so used.

iii. Commercial Activities
iv. Worship Requirement
St. Paul Lutheran Church v. City of Riverview, 165 Mich. App. 155, 418 N.W.2d 412 (1987). Property owned by a church upon which the church intended to build a church building in the future was not exempt from Michigan property tax until the church was actually constructed and used.

Simpson v. International Community of Christ, Church of the Second Advent for the Establishment of the Religion of Cosolargy, 796 P.2d 217 (Nev. 1990). Only a small portion of property upon which a church conducted outdoor ceremonies a few times per week, in various portions of the property, was exempt from Nevada property tax.

Full Gospel Apostolic Church v. Limbach, 546 N.E.2d 403 (Ohio 1989). Forty-seven acres of church property used for sporadic church meetings, recreation, for-profit farming, and allegedly as a sound barrier from the church's meetings, were not exempt from Ohio property tax.

Utah State Tax Comm'n, Rule R884-24-40P (1991). Vacant land held by a religious organization is not exempt.

In re The Dominican Nuns, 142 Wis.2d 577, 419 N.W.2d 270 (Wis. App. 1987). When a religious order already occupied new property, its old property was not exempt from Wisconsin property tax, even though the property contained tools and lawn equipment of the order.

v. Miscellaneous
Indiana Assoc. of Seventh-Day Adventists v. State Board of Tax Comm'rs, 519 N.E.2d 772 (Ind. Tax 1988). Limiting a church camp to a certain number of acres that may be exempted from Indiana property tax, while allowing some other religious organizations to claim exemption from property tax without limitation, was not a denial of equal protection. The caretaker's house on the property was not exempt from Indiana property tax.

c. Other Exempt Organizations
i. Healthcare
Lutheran Child & Family Services of Illinois v. Department of Revenue, 160 Ill. App.3d 420, 513 N.E.2d 587, 112 Ill.Dec. 173 (1987). A building used exclusively as residence for maintenance employee, and apartment building occupied by staff members of residential care and treatment facility, not entitled to tax exempt status.

Utah County v. Intermountain Health Care, Inc., 725 P.2d 1357 (Utah 1986). A hospital meeting statutory requirements for property tax exemption was entitled to exemption during construction, but property not being built upon or used for a charitable purpose is subject to Utah property tax.

ii. Miscellaneous

4. Procedure for Establishing Exemption
a. Application for Property Exemption
St. Mark Coptic Orthodox Church v. Colorado State Board of Assessment Appeals, 762 P.2d 775 (Colo. App. 1988). A church must apply for exemption from Colorado property taxes for property that it purchases, without the benefit of notice from the state.

Machne Sva Rotzohn, Inc. v. Town of Fallsburg, 167 A.D.2d 719, 563 N.Y.S.2d 292 (1990). A religious organization that challenged denial of its exemption from New York property tax more than 4 months after the denial was barred from seeking relief until the next year.

Emunim v. Town of Fallsburg, 557 N.Y.S.2d 514 (1990). The owner of property that does not appear to be exempt on the date for filing for exemption from New York property tax must file.

Faculty-Student Assoc. v. Town of Lyndon, 137 Misc.2d 1057, 523 N.Y.S.2d 943 (Sup. Ct. 1987). Where mere inspection of the property of an educational association does not reveal the property is exempt from New York property taxes, the association must apply for exemption.

N.J. H.B. 249 (amending ch. 303, 1991). Municipalities may forgive New Jersey property tax on schools and churches and other nonprofit organizations if the organization did not qualify the property within the required 10 months of its acquisition solely because the organization had not organized for educational or religious purposes until after that time period.

In re Church of the Creator, 102 N.C. App. 507, 402 S.E.2d 874 (1991). A county assessor may only challenge religious exempt status by requiring, within a certain time period each year, that the taxpayer file a new application.

Tex. H.B.36 (amending ch. 8, 1990). Until December 31, 1991, a religious exemption from Texas property tax may be applied for after the original filing deadline if the application is filed by December 31 of the sixth year after the property taxes were levied.

b. Standing
Maurer v. Young Life, 751 P.2d 653 (Colo. App. 1987). The property tax administrator lacks standing to challenge an order of the Board of Assessments Appeals granting an exemption from Colorado property tax to a religious organization.

Marion County Board of Review v. State Board of Tax Comm'rs, 516 N.E.2d 1129 (Ind. Tax 1987). A county board of review did not have the right to appeal the grant by the state board of tax commissioners of an exemption from Indiana property taxes to certain property used for educational purposes.

Keggereis v. Dallas Central Appraisal District, 749 S.W.2d 516 (Tex. App. 1988). A private school was required to exhaust administrative remedies before challenging the denial of its request for exemption from Texas property tax in district court.

c. Qualified Owner
Community Christian Church, Inc. v. State Board of Tax Comm'rs, 523 N.E.2d 462 (Ind. Tax 1988). Property held under contract by seller of land pending closing by a church was not held in trust, but owned by the seller, and was therefore subject to Indiana property tax.

Bethany Baptist Church v. Deptford Township, 542 A.2d 505 (N.J. Super. App. 1988). Property that was used for nonexempt purposes on the assessment date, which was before a church acquired the property, is subject to New Jersey property tax for the succeeding year.

d. Miscellaneous
Foursquare Tabernacle Church v. State Board of Tax Comm'rs, 550 N.E.2d 850 (Ind. Tax 1990). Whether multiple lots owned by a church constituted a "tract of land" for the purpose of determining Indiana property tax exemption was a question of fact.

Birdville Independent School District v. First Baptist Church of Halton City, 788 S.W.2d 26 (Tex. App. 1988). By supplying voluntarily substantially the same information demanded in the application for property tax exemption, a church waives its free exercise claim against filing such an application. Property owned by a church and used for its school may be found to be regularly used for religious worship, and thus exempt from Texas property tax.

1. Personal Property Owned and Used for Exempt Purposes by Exempt Organizations

a. Educational Organizations
N.Y. H.B. 2574 (amending Code ch. 12, 1991). Property conveyed to a governmental entity prior to June 30, 1991 is exempt from New York property tax if the conveyance is subject to the property being leased for more than 100 years to an educational organization and if the property is used exclusively for educational purposes.

b. Religious Organizations
In re Pullman Community Evangelical Free Church, No. 38303 (Wash. Bd. of Tax Appeals Nov. 5, 1990). Property leased by a church is not exempt from Washington property tax because it is not owned by the church.

c. Other Exempt Organizations
In re Regents of the University of Michigan ex rel. M-Care, No. 110501 (Mich. Tax Tribunal Aug. 1, 1991). Personal property owned by an HMO operated by a university was not subject to Michigan personal property tax because the university controlled the HMO even though a state statute required a separate corporate existence for the HMO.

In re Deborah Hogan's Group Day Care Home, No. PT-1990-18 (Mont. State Tax Appeal Bd. Feb. 26, 1991). Although Montana does not impose property tax on personal property used in an uncertified day care center, it does tax the personal property of a certified day care center because applying for certification indicates the operation of a center for profit.

Tex. S.B. 670 (1991). A television station that produces or broadcasts educational, cultural, or other public interest programming and that receives grants from the Corporation for Public Broadcasting under 47 U.S.C. § 396 is exempt from property tax in Texas.

2. Personal Property Owned and Used for Income Tax Exempt Purposes, but Not Property Tax Exempt Purposes, by Exempt Organizations

3. Personal Property Owned but Not Used for Exempt Purposes by Exempt Organizations

a. Educational Organizations
Seven Keels Schools v. Kinney, 28 Ohio St.3d 186, 503 N.E.2d 163 (1986). Property owned by a private school and used for a clothing exchange, at which the school sold donated clothing for money for scholarships, was not exempt from Ohio property tax because the exchange was not an educational or charitable function of the school.

b. Religious Organizations
In re Steer, Inc., P.2d (Mont. Dec. 11, 1990). Cattle sold to support evangelical organizations were not exempt from Montana property tax because the cattle were sold to support evangelism rather than used directly to feed the needy.

c. Other Exempt Organizations

1. Real Property Leased and Used for Exempt Purposes by Exempt Organizations
a. Educational Organizations
i. Land Uses and Exclusive Use Requirements
Fla. S.B. 204 (amending ch. 121, 1991). Property owned by an educational institution and used by another exempt entity is exempt from Florida property tax. Furthermore, an educational institution is defined as any federal, state, parochial, church, or private school, college or university.

In re Resurrection Lutheran Church, No. 1-89-0185 (Ill. App. Ct. June 3, 1991). Property owned by a church and leased to a nonprofit dance school is exempt from Illinois property tax.

In re Lakeview School District, No. 103231 (Mich. Tax Tribunal Apr. 23, 1991). Property leased by a school district to a nonprofit preschool and day care center was exempt from Michigan property tax because the operation of the preschool and day care were deemed to be for the purpose of the public school; the preschool and day care were open to the public and relieved the school district of functions that it would otherwise have had to perform.

ii. Housing
Connolly v. County of Orange