DocketNumber: TC 3294
Citation Numbers: 12 Or. Tax 414
Judges: <bold>CARL N. BYERS, Judge.</bold>
Filed Date: 4/9/1993
Status: Precedential
Modified Date: 1/13/2023
Decision for defendant rendered April 9, 1993. Plaintiff owns a lodge on leased United States Forest Service land. The lodge and its predecessors have been exempt from ad valorem taxation for many years.1 In 1990, the Clackamas County Assessor asked plaintiff to submit a current exemption application. After receiving the updated *Page 415 application, the assessor denied plaintiff's request for property tax exemption. On appeal to defendant, defendant affirmed the assessor.
2. If plaintiff is a charitable organization, is the lodge actually and exclusively occupied or used in its charitable work?
"(1) The organization must have charity as its primary, if not sole, object; (2) the organization must be performing in a manner that furthers its charitable object; and (3) the organization's performance must involve a gift or giving."
In order to qualify for property tax exemption, plaintiff must meet all three of these conditions.
Plaintiff, in its response to the county assessor's questions, aptly summarized the situation.
*Page 416"The first specific question you asked was whether the primary purpose/activity of the organization is charitable. It is not the primary purpose but it does have some charitable aspects."
There is additional evidence of plaintiff's lack of a primarily charitable purpose. Plaintiff's Articles of Incorporation do not provide for disposition of the assets for charitable purposes on dissolution. See OAR 150-307.130-(A)(1)(e).
1. Since the standard for charitable organizations requires that "the organization must have charity as its primary, if notsole object," SW Oregon Pub. Def. Services,
To qualify for membership, an individual must (1) have climbed a mountain that has an active living glacier, (2) be sponsored by two active members, (3) pay the initiation fee and annual dues, and (4) be approved by a majority of the Executive Council. There are no provisions for scholarships beyond the vague statement that the Executive Council may, on a year-to-year basis, waive all or part of the dues.
Plaintiff's activities are available to the public, although at higher costs than to members. The activities include organized hikes and climbs, Nordic ski school and mountain-climbing school. Plaintiff does allow some organizations, such as churches or youth organizations, to use its facilities at a reduced rate.4 There is no evidence plaintiff would waive fees if an organization or an individual could not afford the fees. See OAR 150-307.130-(A)(3)(d)(C)(2) and (4). When the lodge is used for actual search and rescue (as opposed to search and rescue training), the facility is available without charge. *Page 417
2. The parties agree the organization has some charitable aspects. However, when determining exemption issues, "it is not the incidental or minor activities of the claimant which control, but rather the principal activity." Oregon StampSociety v. Commission,
The lodge is also the site of some of the mountain-climbing school instructions and the Nordic ski school, none of which was shown to be charitable.
3. In summary, while there may be some charitable use of the lodge, the property was not "exclusively occupied or used" for charitable purposes. The primary use of the property was for the benefit of the members. The lodge was only incidentally used for charitable purposes. See Mercy Medical Center, Inc. v.Dept. of Rev.,
Defendant's Opinion and Order No. 91-0561 is sustained. Defendant to recover costs and disbursements.
SW OR. PUB. DEF. SERVICES v. Dept. of Rev. , 312 Or. 82 ( 1991 )
Mercy Medical Center, Inc. v. Dept. of Rev. , 12 Or. Tax 305 ( 1992 )