Simpson v. International Community of Christ , 106 Nev. 458 ( 1990 )

OPINION

By the Court,

Rose, J.:

The district court determined that The International Community of Christ, Church of the Second Advent for the Establishment of the Religion of Cosolargy (Community of Christ), was entitled to a real property tax exemption pursuant to NRS 361.125(1) and NRS 361.140(2) because it was a religious organization that actually used approximately 1300 acres of real property for religious purposes. This overruled the determination of the Washoe County Assessor that only 146 acres were actually used and, therefore, exempt from taxation. We conclude that the record does not support granting a greater tax exemption than that determined by the Washoe County Assessor and reverse the district court’s judgment that granted the entire two square miles of real property exempt from real property taxation.

STATEMENT OF FACTS

The Community of Christ owns two large parcels of non-contiguous real property in the Red Rock Estates area north of Reno that it calls the north and south sanctuaries. The sanctuaries are five miles apart. Pursuant to divine revelation, the large parcels were acquired and divided into 25 smaller tracts of land that the Community of Christ calls “churches,” and each encompasses more than 40 acres. There is a cleared open-air worship area on each church tract that contains an altar or a communion table. The cleared area on each tract is usually considerably less than one acre. Large crosses have been erected on several of the hills on the property. There is no building or structure on any of the church tracts and the remaining land is left in its natural state.

The Community of Christ holds a religious ceremony on one of the more frequently used church tracts each week, with another ceremony conducted each week on a rotating basis from one church tract to another. A few church tracts are frequently used, a number are used occasionally, and several are never used for religious ceremonies. The Community of Christ’s doctrine requires that certain observances be conducted out of doors. The Church’s belief is that when one parcel is being used for worship, all of the property is combined to form a single sanctuary. The entire two square miles of real property is used for nothing other than religious purposes.

To assist the assessor in determining what church land is exempt from taxation pursuant to NRS 361.125(1) and NRS 361.140(2), the Washoe County District Attorney’s office issued an opinion letter stating what should be considered in determining a religious tax exemption. The guidelines set forth in the letter included the consideration of all improvements and improved land actually used for religious purposes, parking and roads of ingress and egress, landscaping, additional land necessary to separate the religious improvements from other property so as to allow peaceful worship, and the land needed for future expansion. Using these guidelines and his experience, an appraiser from the assessor’s office inspected the two square miles for which the church claimed a total tax exemption.

The assessor determined that the altar, communion tables, crosses and other improvements were obviously exempt, as well as the cleared area and roads in each tract. In addition, the assessor classified as exempt additional acreage around the cleared area so that each “church tract” had about five acres of land determined to be exempt. A few parcels with more improvements or cleared area were granted an even larger exemption. Of the 25 parcels, 146 of the 1300 acres were determined to be exempt by the assessor.

The Community of Christ challenged the assessor’s determination and filed suit to have all 25 tracts, approximately two square miles of land, declared exempt from real property taxation pursuant to NRS 361.125 and 361.140. After a bench trial, the district court found that the Community of Christ was a religious organization or church and that it actually occupied all of the 25 parcels. Judgment was entered declaring the Church’s 25 parcels exempt from taxation. Washoe County, its treasurer and assessor have appealed that decision and judgment to this court.

DISCUSSION

The initial problem that must be addressed is that both NRS 361.125(1) and 361.140(2) refer to a church or structure, together with the lot on which it stands or the land around it that is actually used. There are no buildings or structures on the church tracts but only an altar or communion table, a cleared area and a few crosses. The Washoe County District Attorney’s office took the position in its advisory letter to the county assessor that if there are no improvements on the land, no religious exemption can be granted under the statute. However, if there are actively used religious improvements, even though they are not a traditional church or building structure, such improvements are sufficient to comply with the statutes.

Requiring that some improvement must be on the land claimed to be exempt because of religious use seems reasonable to us and in conformity with NRS 361.125(1) and 361.140(2). NRS 361.125(1) declares exempt from taxation churches or other buildings used for religious worship and the lots of ground on which they stand that are used therewith and necessary thereto. NRS 361.140(2) exempts all buildings of a charitable or religious organization together with the land actually occupied. By reading both statutes, it is clear that the legislature wanted to exempt a building, structure or improvement used by a religious or charitable organization and the land around it actually used and necessary to the structure’s or improvement’s use. The assessor’s position is that the structure need not be a traditional church, synagogue, or stake building, but can be any improvement that the church actually uses. Such an interpretation gives the assessor some flexibility in granting a religious tax exemption to real property owned by non-traditional religious organizations that practice unorthodox forms of worship. Therefore, an improvement and actual use are the essential requirements before a church or religious orgainzation can claim an exemption pursuant to NRS 361.125(1) or NRS 361.140(2).

A tax exemption should not expand or contract depending on the liturgy or methodology of a religious organization. Rather, it should be governed by a strict interpretation of the tax exemption statute. This court has held that tax exemptions must be strictly construed against the party claiming the exemption. Sierra Pac. Power v. Department of Taxation, 96 Nev. 295, 297, 607 P.2d 1147, 1148 (1980). The Washoe County Assessor has been reasonable with its grant of exemptions totalling more than ten percent of the two square miles of land. A strict, even a reasonable, interpretation of these two tax exemption statutes when applied to the facts of this case does not lead to the conclusion that two square miles of vacant land should be tax exempt because a religious group conducts open-air religious ceremonies a few times a week at different locations on the land. Spiritual or constructive use should not be considered actual use.

CONCLUSION

There is insufficient evidence to support the district court’s decision that the Community of Christ actually used more of the church tracts than the Washoe County Assessor determined was used and thus exempt from taxation. When the evidence in a record supports only a portion of the judgment entered, that judgment must be reversed to the extent that it is unsupported. See City Council of Reno v. Reno Newspapers, 105 Nev. 886, 784 P.2d 974 (1989).

This case is reversed and remanded to the district court with directions to uphold the tax exemption determined by the Washoe County Assessor.

Young, C. J., and Springer, J., concur.