95 So. 3d 970
Fla. Dist. Ct. App.2012Background
- Cathedral Arts Project, Inc. is a Florida nonprofit formed in 2000 to promote the arts in Jacksonville, incorporated by the Chancellor of St. John’s Cathedral.
- Articles of Incorporation state purposes include scientific, educational, and charitable goals, plus creating spiritual enrichment through the arts.
- Board of Directors includes up to 24 lay members and one clergy member; initial lay directors were elected by the Incorporator; later lay directors are nominated by the Board of Directors and elected by Appellant’s Members, defined as St. John’s Cathedral’s Rector, Wardens, and Vestry.
- Department of Revenue issued an Independent Contractor Determination (July 5, 2008) and a Special Liability Notice (July 8, 2008) asserting unemployment tax liability; no protest was filed.
- Audited period to 2009 yielded a $20,209.80 unemployment tax assessment (June 7, 2010) which Appellant protested on religious-purpose grounds and church control.
- Special deputy found Appellant’s primary purpose was to promote and support the arts in Jacksonville, not primarily religious; agency adopted this finding and dismissed pre-July 29, 2008 portion for lack of jurisdiction while affirming the post-2008 assessment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Exemption under religious-purpose statute | Cathedral Arts argues primary religious purpose and church control. | Agency found not operated primarily for religious purposes, despite church control. | Not exempt; competent, substantial evidence supports non-religious primary purpose. |
| Jurisdiction over pre-July 29, 2008 period | Dismissal of pre-2008 period was erroneous and jurisdictional. | Determin ations became final and binding; protest not filed; agency did not err. | affirmed; pre-2008 period properly dismissed for lack of jurisdiction. |
Key Cases Cited
- His Kids Daycare v. Fla. Unemployment Appeals Comm’n, 904 So.2d 477 (Fla. 1st DCA 2005) (standard for reviewing evidence supporting exemption finding)
- Peace Lutheran Church v. State, Unemployment Appeals Comm’n, 906 So.2d 1197 (Fla. 4th DCA 2005) (undisputed religious purpose finding in a similar context)
- St. Martin Evangelical Lutheran Church v. South Dakota, 451 U.S. 772 (Supreme Court 1981) (unemployment tax exemption context; distinction between federal statute sections)
- Bach v. Steinbacher, 80 Ohio App.3d 461 (Ohio App.3d 1992) (relevance to focus on statute provisions for religious-purpose exemption)