Being a “good landlord” not enough to prove low income housing qualified for Indiana’s charitable purpose property tax exemption

by Faegre Baker Daniels
Contact

In Housing Partnerships, Inc. v. Tom Owens, Bartholomew County Assessor, Pet. No. 49T10-1005-TA-23 (June 6, 2014), Taxpayer owned several individual homes, duplexes and small apartment buildings.  The properties were rented to persons with annual incomes at or below 60% of the area median income.  For the March 1, 2006, assessment date, Taxpayer requested a property tax exemption for its properties, claiming a charitable purpose exemption because they were used to provide low income housing.  The local Property Tax Assessment Board of Appeals (PTABOA) and the Indiana Board of Tax Review denied the exemption.  According to the Indiana Board, Taxpayer failed to establish a prima facie case that its properties should be exempt, and it did not explain what terms and conditions were attached to significant federal grants received for the properties.

The charitable exemption standard. Taxpayer was required to show that its property was owned, occupied and predominantly used for a charitable purpose to be exempt.  See Ind. Code § 6-1.1-10-16.  For its properties to be exempt, Taxpayer had to submit probative evidence showing two things:  (1) “its ownership, occupation, and use of the subject properties as low-income housing provided evidence of relief of human want manifested by obviously charitable acts different from the everyday purposes and activities of man in general” and (2) “through the accomplishment of those charitable acts, benefit inures to the public sufficient to justify the loss of tax revenue.”  Slip op. at 5 (internal quotations, citations omitted).

Being a “good landlord” wasn’t enough.   Taxpayer claimed that testimony in the record proved that its properties were used to provide low-income individuals in distressed areas with “clean, safe and secure housing . . . at affordable and below-market rents” and with services and support designed “to assist them in becoming self-sufficient and productive members of the community.”  Slip op. at 6.  The Indiana Board concluded that the evidence (showing, among other things, Taxpayer’s paying for tenants to attend at least one credit counseling session) did show Taxpayer to be a “good landlord” that did some “nice things” for tenants.  Slip op. at 8.  However, that was not enough to show the properties qualified for exemption.  Id.  The Tax Court observed:  “The Indiana Board’s conclusion that a taxpayer must show more than just good deeds and a nonprofit status is supported by this Court’s case law.” Id.  Taxpayer provided only conclusory assertions – not evidence showing that it lessoned the government’s financial burden.  Slip op. at 10.  Taxpayer offered no evidence showing that it “relieved the government of an expense it would otherwise have borne, or whether the government, through its federal grants, was still bearing the expense itself.”  Slip op. at 12.  The Indiana Board hadn’t ignored Taxpayer’s evidence; rather, it weighed the evidence and concluded that it failed to demonstrate that its properties qualified for Indiana’s charitable purpose exemption. Slip op. at 10, 12.

 

Written by:

Faegre Baker Daniels
Contact
more
less

Faegre Baker Daniels on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.